RMBSRambus Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.7×), margins widening, and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RMBS?
Rambus Inc. earns 34% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 25 points above what the capital costs: growth creates value
- Operating margin
- 36%
Operating margin · Semiconductors median 7.5% · 12 months to Q1 2026
- Cash conversion
- 1.74×
Cash conversion · 1.40× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.0%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −18% |
| FY2021 | 7.4% |
| FY2022 | 17% |
| FY2023 | 33% |
| FY2024 | 33% |
| FY2025 | 37% |
Details›
- Gross margin12 months to Q1 2026
- 79%
- Operating margin12 months to Q1 2026
- 36%
- Net margin12 months to Q1 2026
- 32%
- Free cash flow margin
- 46%
- R&D as % of revenue
- 27%
- Revenue, trailing twelve months
- $721M
- Free cash flow, trailing twelve months
- $335M
- Net income, trailing twelve months
- $230M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 34%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.