# Rambus (RMBS.US)

Canonical: https://gigainvestors.com/s/RMBS

Analysis as of: 2026-10-16T07:31:36.940Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $92.87 per share; close as of 2026-10-15.

Estimated value: low $33.73 per share, central $37.35 per share, high $42.17 per share. Buy at or below the central value $37.35 per share. Valuation as of 2026-10-16T07:31:36.940Z; scenarios are not confidence intervals.

Expected annual return: 5.4% at the stated quote. About 5.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 5

- Operating margin variation: 3.60×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: -0.37×

- FY2019: -0.38×

- FY2020: -0.17×

- FY2021: 0.09×

- FY2022: 0.18×

- FY2023: 0.20×

- FY2024: 0.32×

- FY2025: 0.37×

- LTM to Jun 2026: 0.36×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 19.4%

- ROIC, second-lowest year: -9.1%

- Typical minus recent gross margin: -3.8 pp

- Typical gross margin (annual median): 72.2%

- Recent gross margin (lower of latest and 3-year median): 76.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 6.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 13.1%

- FY2018: -9.1%

- FY2019: -11.5%

- FY2020: -7.8%

- FY2021: 7.9%

- FY2022: 28.9%

- FY2023: 25.7%

- FY2024: 42.1%

- FY2025: 59.2%

- LTM to Jun 2026: 58.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $858M

- Net income, five-year total: $748M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -6.8 pp

- Working capital / revenue, final three-year average: 29.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.66×

- FY2022: -0.86×

- FY2023: 1.08×

- FY2024: 1.07×

- FY2025: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.7% vs 42.1%

- Per-share earnings: 0.06 to 2.11 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.7%

- Market cap gain: $8.4B

- Cumulative retained earnings: $692M

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 56.0%

- Per-share value change: $2.05

- Per-share value, starting three-year median: $0.06

- Per-share value, ending three-year median: $2.11

- Buybacks concentrated in cheaper years (correlation): -0.44

- Average buyback yield: 2.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $382M

- Cumulative net income, 10 years: $443M

- ROIC, first three-year median: 8.7%

- ROIC, last three-year median: 42.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.06

- FY2017: -$0.21

- FY2018: -$1.46

- FY2019: -$0.81

- FY2020: -$0.36

- FY2021: $0.16

- FY2022: -$0.13

- FY2023: $3.01

- FY2024: $1.65

- FY2025: $2.11

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.5%

- Receivables to sales index (DSRI): 0.87×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 15.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.56×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.9%

- FY2017: -15.7%

- FY2018: -18.0%

- FY2019: -16.3%

- FY2020: -18.1%

- FY2021: -15.5%

- FY2022: -24.2%

- FY2023: 11.0%

- FY2024: -3.8%

- FY2025: -8.5%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since May 2026 · "Rambus Stock Crumbles On Soft Q1 Guidance" (finance.yahoo.com, Feb 2026) · sales +6.9%

Story as of 2026-10-16T09:59:30.672Z; price observation 2026-10-15.

Price needs cash profits to grow 14.2% a year for ten years

- 2025-07-29: Rambus expects double-digit Q3 product revenue growth as DDR5 leadership continues ([seekingalpha.com](https://seekingalpha.com/news/4473054-rambus-expects-double-digit-q3-product-revenue-growth-as-ddr5-leadership-continues?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-03: Rambus Stock Crumbles On Soft Q1 Guidance ([finance.yahoo.com](https://finance.yahoo.com/m/e8165f6a-ec9f-3a2f-b3f8-78e58b5b4770/rambus-stock-crumbles-on-soft.html))

### Sales · FY2025–2026

sales +6.9%; source https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm; observed 2026-02-18.

- FY2017: $393M 

- FY2018: $231M 

- FY2019: $224M 

- FY2020: $246M 

- FY2021: $328M 

- FY2022: $455M 

- FY2023: $461M 

- FY2024: $557M 

- FY2025: $708M 

- FY2026: $756M 

### Gross margin · FY2026

gross margin 78.3%; source https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm; observed 2026-02-18.

- FY2017: 78.1% 

- FY2018: 74.3% 

- FY2019: 65.3% 

- FY2020: 62.8% 

- FY2021: 70.0% 

- FY2022: 69.0% 

- FY2023: 69.1% 

- FY2024: 75.4% 

- FY2025: 76.0% 

- FY2026: 78.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are USD 707.6 million.

- Source: https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm (filed 2026-02-18); FY2025: revenue 707630000; grossProfit 537561999; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RMBS.US: Rambus Inc. manufactures and sells semiconductor products in the United States, South Korea, Singapore, and internationally. It offers memory interface chips comprising DDR5 memory interface chips which include registering clock driver, multiplexed registering clock driver, multiplexed data buffer, power management integrated circuits, serial presence detect hubs, temperature sensors, and client clock driver products; and DDR4 memory interface chips. The company also provides silicon IP, such as interface and security IP solutions that move and protect data in advanced artificial intelligence, data center, government, and automotive applications; interface IP solutions for high-speed memory and chip-to-chip digital controller IP; security IP solutions, including crypto cores, hardware roots of trust, high-speed protocol engines, and chip provisioning technologies. In addition, it offers portfolio of patents that covers memory architecture, high-speed serial links, and security products. The company sells its products to memory module manufacturers, OEMs and hyperscalers, as well as to chip makers. It markets its products and services through its direct sales force and distributors. Rambus Inc. was incorporated in 1990 and is headquartered in San Jose, California.

### Why customers stay

Margins ranged from 69.1% to 76% during 2023–25; it earns 19.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: grossProfit / revenue = 69.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: grossProfit / revenue = 75.4%.

- Source: https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm (filed 2026-02-18); FY2025: grossProfit / revenue = 76%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 10-year return on capital observations [[2017,0.13053290895184116],[2018,-0.09063201796599295],[2019,-0.115209640276344],[2020,-0.07820512212754359],[2021,0.07945964394016805],[2022,0.289420581020722],[2023,0.2569176730225493],[2024,0.42104570040875877],[2025,0.5917293372400259],[2026,0.5800155081785845]]; median 0.19372529098719524. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 69% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm (filed 2026-02-18); Gross margin observations: [[2021,0.7001864125932062],[2022,0.690474567550512],[2023,0.6913169542654034]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 5 of 10 years; bought back USD 7.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2016: growth capex 0; upkeep 8556000; cash acquisitions 202523000; owner earnings 48367000. Growth capex plus acquisitions / owner earnings = 4.187214423057043.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2017: growth capex 0; upkeep 9505000; cash acquisitions 0; owner earnings 22870000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2021: growth capex 0; upkeep 13792000; cash acquisitions 97115000; owner earnings 48819000. Growth capex plus acquisitions / owner earnings = 1.9892869579467012.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2022: growth capex 0; upkeep 20478000; cash acquisitions 15932000; owner earnings 12339000. Growth capex plus acquisitions / owner earnings = 1.2911905340789367.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: growth capex 0; upkeep 23240000; cash acquisitions 0; owner earnings 359092000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: growth capex 0; upkeep 30697000; cash acquisitions 0; owner earnings 191814000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm (filed 2026-02-18); FY2025: growth capex 0; upkeep 26842000; cash acquisitions 0; owner earnings 245602000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,0],[2017,195673000],[2018,0],[2019,15402000],[2020,13201000],[2021,12472000],[2022,0],[2023,10697000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm (filed 2026-02-18); FY2025: cash repurchases 7114000 USD.

### Are managers owners

Insiders own 0.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RMBS.US SharesStats.PercentInsiders = 0.767 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 14.2% yearly over ten years; actual growth was 0.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate 0.1917807320155812. Price 92.87; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.065889823295087 → FY2025 2.248381928868952. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $12.19 per share

- 2016-11: $13.15 per share

- 2016-12: $13.77 per share

- 2017-01: $12.98 per share

- 2017-02: $12.56 per share

- 2017-03: $13.14 per share

- 2017-04: $12.52 per share

- 2017-05: $11.84 per share

- 2017-06: $11.43 per share

- 2017-07: $12.89 per share

- 2017-08: $12.97 per share

- 2017-09: $13.35 per share

- 2017-10: $14.71 per share

- 2017-11: $14.80 per share

- 2017-12: $14.22 per share

- 2018-01: $12.63 per share

- 2018-02: $12.71 per share

- 2018-03: $13.43 per share

- 2018-04: $13.50 per share

- 2018-05: $13.46 per share

- 2018-06: $12.54 per share

- 2018-07: $12.36 per share

- 2018-08: $12.22 per share

- 2018-09: $10.91 per share

- 2018-10: $8.71 per share

- 2018-11: $8.72 per share

- 2018-12: $7.67 per share

- 2019-01: $9.02 per share

- 2019-02: $10.27 per share

- 2019-03: $10.45 per share

- 2019-04: $11.46 per share

- 2019-05: $11.36 per share

- 2019-06: $12.04 per share

- 2019-07: $12.46 per share

- 2019-08: $12.54 per share

- 2019-09: $13.13 per share

- 2019-10: $13.85 per share

- 2019-11: $13.05 per share

- 2019-12: $13.78 per share

- 2020-01: $15.87 per share

- 2020-02: $13.98 per share

- 2020-03: $11.10 per share

- 2020-04: $12.53 per share

- 2020-05: $15.54 per share

- 2020-06: $15.20 per share

- 2020-07: $14.76 per share

- 2020-08: $13.43 per share

- 2020-09: $13.69 per share

- 2020-10: $13.79 per share

- 2020-11: $15.72 per share

- 2020-12: $17.46 per share

- 2021-01: $19.00 per share

- 2021-02: $20.98 per share

- 2021-03: $19.44 per share

- 2021-04: $18.98 per share

- 2021-05: $19.56 per share

- 2021-06: $23.71 per share

- 2021-07: $23.66 per share

- 2021-08: $23.80 per share

- 2021-09: $22.20 per share

- 2021-10: $23.27 per share

- 2021-11: $26.90 per share

- 2021-12: $29.39 per share

- 2022-01: $25.25 per share

- 2022-02: $27.00 per share

- 2022-03: $31.89 per share

- 2022-04: $24.91 per share

- 2022-05: $25.10 per share

- 2022-06: $21.49 per share

- 2022-07: $25.28 per share

- 2022-08: $25.79 per share

- 2022-09: $25.42 per share

- 2022-10: $30.16 per share

- 2022-11: $38.38 per share

- 2022-12: $35.82 per share

- 2023-01: $40.47 per share

- 2023-02: $44.23 per share

- 2023-03: $51.26 per share

- 2023-04: $44.34 per share

- 2023-05: $63.96 per share

- 2023-06: $64.17 per share

- 2023-07: $62.61 per share

- 2023-08: $56.47 per share

- 2023-09: $55.79 per share

- 2023-10: $54.33 per share

- 2023-11: $67.67 per share

- 2023-12: $68.25 per share

- 2024-01: $68.53 per share

- 2024-02: $59.24 per share

- 2024-03: $61.81 per share

- 2024-04: $54.82 per share

- 2024-05: $55.26 per share

- 2024-06: $58.76 per share

- 2024-07: $51.44 per share

- 2024-08: $44.72 per share

- 2024-09: $42.22 per share

- 2024-10: $47.82 per share

- 2024-11: $57.81 per share

- 2024-12: $52.86 per share

- 2025-01: $61.62 per share

- 2025-02: $55.89 per share

- 2025-03: $51.78 per share

- 2025-04: $48.79 per share

- 2025-05: $53.47 per share

- 2025-06: $64.02 per share

- 2025-07: $73.93 per share

- 2025-08: $73.77 per share

- 2025-09: $104.20 per share

- 2025-10: $102.84 per share

- 2025-11: $95.57 per share

- 2025-12: $91.89 per share

- 2026-01: $113.83 per share

- 2026-02: $99.66 per share

- 2026-03: $86.03 per share

- 2026-04: $115.11 per share

- 2026-05: $145.46 per share

- 2026-06: $132.74 per share

- 2026-07: $91.03 per share

- 2026-08: $86.69 per share

- 2026-09: $106.76 per share

- 2026-10: $92.87 per share

## Annual estimated value (USD per share)

- FY2016: low $6.13 per share, central $6.78 per share, high $7.64 per share

- FY2017: low $8.52 per share, central $9.29 per share, high $10.32 per share

- FY2018: low $5.87 per share, central $6.33 per share, high $6.94 per share

- FY2019: low $4.92 per share, central $5.10 per share, high $5.33 per share

- FY2023: low $4.99 per share, central $5.16 per share, high $5.39 per share

- FY2024: low $12.61 per share, central $13.76 per share, high $15.28 per share

- FY2025: low $31.24 per share, central $34.61 per share, high $39.09 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/917273/000119312526057101/rmbs-20251231.htm); period 2025-12-31, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.