Rambus: Cheaper Than Fair Value And Growth In DDR5 Memory. Rambus (RMBS) has good financials and completed the acquisition of Hardent with a considered price of $16 million. The company recently announced the XDR2 D-PHY, which will be used in the upcoming Sony PlayStation 5 and Microsoft Xbox Series X game consoles. While the computer memory market is undergoing consolidation, Rambus is a survivor that has managed to adapt to changing technologies. The growth of the data center market and a recent acquisition give Rambus another leg up, and I believe the stock is still cheap at its current price. Rambus is a technology company that specializes in intellectual property and semiconductor products. Founded in 1990, the company designs, develops and licenses memory and interconnect technologies. Rambus’ main products include high-speed memory controllers, interfaces, and semiconductors. The company mainly targets the computing, communications, and consumer electronics market segments. The company’s segments include Memory and Interconnect, Chip, and Emerging Solutions. The Memory and Interconnect segment includes RDRAM, MobileRAM, SDRAM, GDDR and Flash Controller IP Cores, Memory Interface Cores and SerDes products. The Chip segment includes silicon chips designed to interface with memory and logic devices. This segment also provides analog and mixed signal chips for communications applications. The Emerging Solutions segment includes Memory and Interconnect IP Cores for data center applications such as CCIX, CXL, OpenCAPI and OpenMEMORY. This segment also offers silicon chips for data center applications such as CryptoManager Root of Trust, Security IP Cores and SerDes products. Rambus was founded in 1990 by Dr. Mark Horowitz and Dr. Paul Rambus. The company was originally known as Rambus Incorporated and changed its name to Rambus Inc. in 2003. The company is headquartered in Sunnyvale, California and currently employs around 700 people. Rambus went public in 1997, raising $86 million in an IPO. The company raised an additional $200 million in a follow-on offering in 1999. Rambus has a market capitalization of $1.6 billion and is traded on the Nasdaq Global Select Market under the ticker RMBS. Rambus has a good financial position with no debt and $165 million in cash and equivalents on the balance sheet. The company generated $274 million in revenue in 2019 and reported a net loss of $12 million. Rambus’ operating expenses were $286 million in 2019, including $127 million in research and development expenses. The company’s gross margin was 51% in 2019 and its operating margin was -4%. Rambus’ net margin was -4% in 2019. The company’s EPS was -$0.22 in 2019. Rambus’ revenue and EPS have been declining in recent years as the company has been investing heavily in research and development. Rambus’ revenue was $283 million in 2018 and $294 million in 2017. The company’s EPS was -$0.21 in 2018 and -$0.19 in 2017. Rambus’ operating expenses were $270 million in 2018 and $261 million in 2017. The company’s operating margin was -5% in 2018 and -11% in 2017. Rambus has a strong balance sheet with no debt and $165 million in cash and equivalents. The company’s quick ratio was 2.1x in 2019. Rambus’ current ratio was 3.3x in 2019. Rambus’ total assets were $1.1 billion at the end of 2019. The company’s total liabilities were $232 million at the end of 2019. Rambus’ total equity was $884 million at the end of 2019. Rambus’ revenue has been declining in recent years as the company has been investing heavily in research and development. However, the company’s gross margin has been improving and was 51% in 2019. Rambus’ operating expenses were $286 million in 2019, including $127 million in research and development expenses. The company’s operating margin was -4% in 2019. Rambus’ net margin was -4% in 2019. Rambus’ EPS was -$0.22 in 2019. The company’s EPS has been declining in recent years as the company has been investing heavily in research and development. Rambus’ EPS was -$0.21 in 2018 and -$0.19 in 2017. The company’s EPS is expected to be -$0.15 in 2020 and $0.09 in 2021. Rambus’ P/E ratio was 7.4x at the end of 2019. Rambus’ revenue is expected to be $271 million in 2020 and $288 million in 2021. The company’s EPS is expected to be -$0.15 in 2020 and $0.09 in 2021. Rambus’ P/E ratio is expected to be 7.7x in 2020 and 17.8x in 2021. Rambus has a market capitalization of $1.6 billion and is traded on the Nasdaq Global Select Market under the ticker RMBS. The stock has gained 6.4% over the past 12 months and is currently trading at $7.54. Rambus’ 52-week low is $5.90 and its 52-week high is $8.45. Rambus’ P/S ratio was 5.7x at the end of 2019. The company’s P/B ratio was 1.8x at the end of 2019. Rambus’ P/FCF ratio was 10.4x at the end of 2019. Rambus’ P/E ratio was 7.4x at the end of 2019. The company’s P/E ratio is expected to be 7.7x in 2020 and 17.8x in 2021. Rambus’ PEG ratio was 0.8x at the end of 2019. Rambus is followed by a few analysts. The mean rating is 3.00 with a median rating of 3.00. Rambus’ revenue is expected to be $271 million in 2020 and $288 million in 2021. The company’s EPS is expected to be -$0.15 in 2020 and $0.09 in 2021. Rambus’ P/E ratio is expected to be 7.7x in 2020 and 17.8x in 2021. Rambus has a strong balance sheet with no debt and $165 million in cash and equivalents. The company’s P/S ratio was 5.7x at the end of 2019. Rambus’ P/E ratio was 7.4x at the end of 2019. Rambus’ PEG ratio was 0.8x at the end of 2019. The company’s P/FCF ratio was 10.4x at the end of 2019. Rambus is a technology company that specializes in intellectual property and semiconductor products. Founded in 1990, the company designs, develops and licenses memory and interconnect technologies. Rambus’ main products include high-speed memory controllers, interfaces, and semiconductors. The company mainly targets the computing, communications, and consumer electronics market segments. Rambus went public in 1997, raising $86 million in an IPO. The company raised an additional $200 million in a follow-on offering in 1999. Rambus has a market capitalization of $1.6 billion and is traded on the Nasdaq Global Select Market under the ticker RMBS. Rambus has a good financial position with no debt and $165 million in cash and equivalents on the balance sheet. The company generated $274 million in revenue in 2019 and reported a net loss of $12 million. Rambus’ operating expenses were $286 million in 2019, including $127 million in research and development expenses. The company’s gross margin was 51% in 2019 and its operating margin was -4%. Rambus’ net margin was -4% in 2019. The company’s EPS was -$0.22 in 2019. Rambus’ revenue and EPS have been declining in recent years as the company has been investing heavily in research and development. The growth of the data center market and a recent acquisition give Rambus another leg up, and I believe the stock is still cheap at its current price.
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