# Rambus Inc (RMBS) — Stock CV

Rambus Inc is a $11.6B technology company. Revenue grew 17.2% over the last year, it keeps 32¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 48.6× earnings — in the most expensive third of its own history.

> Rambus Inc is a semiconductor company providing chips and silicon IP for data-intensive computing systems, focusing on data center and artificial intelligence (AI) infrastructure.

## Identity

- **Ticker**: RMBS
- **Sector**: Technology
- **Industry**: Semiconductors & Related Devices
- **Headquarters**: SAN JOSE, CA
- **Employees**: 791
- **Website**: https://www.rambus.com
- **Market cap**: $11.6B
- **Last price**: $107.00
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $756M
- **Net income**: $240M
- **Free cash flow**: $300M
- **Net cash**: $554M
- **P/E**: 48.6
- **Revenue growth (YoY)**: 17.2%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 15 |
| Growth | 75 |
| Profitability | 95 |
| Health | 75 |
| Quality | 65 |
| Moat | 56 |

## Qualifications (beginner checklist) — 9 of 10 passed

- [x] Revenue growing — +17.2% YoY
- [x] Profitable — $240M TTM
- [x] Profit growing — +28.2% YoY
- [x] Generates cash — $300M TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $11.6B market cap
- [x] Not printing shares — -3.5% shares over ~5y
- [x] Proven track record — 5/10 profitable years
- [ ] Financially stable — health score 50/100
- [x] Valuation not extreme — P/E 48.6

## Experience (career milestones)

- **FY2023** — Best year on record: $334M net income
- **2023** — It was announced the acquisition had been completed
- **2022** — It was announced Rambus had acquired the Montreal-headquartered electronic design company, Hardent
- **FY2016** — First recorded profitable year: $6.82M net income
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2016** — Rambus acquired Semtech s Snowbush IP for US$32.5 million
- **2015** — Rambus acquired Integrion Microelectronics, a small Toronto-based IP provider of high-speed analog SerDes…
- **Jun 6, 2011** — Rambus purchased Cryptography Research on June 6, 2011, for $342.5M
- **1990** — Rambus was founded in March 1990 by electrical and computer engineers, Mike Farmwald and Mark Horowitz

## Strengths

- High gross margin (79.5%)
- Strongly profitable — 31.7% net margin
- Revenue growing 17.2% year over year
- Strong cash conversion — FCF is 39.6% of revenue
- Net cash position after subtracting debt from cash

## Watch-outs

- Loss-making in 5 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $328M | $18.3M | $195M |
| FY2022 | $455M | -$14.3M | $213M |
| FY2023 | $461M | $334M | $173M |
| FY2024 | $557M | $180M | $200M |
| FY2025 | $708M | $230M | $333M |

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Source: https://stockcv.com/RMBS — derived from company filings; may be delayed or incomplete. Information, not investment advice.