Rambus Inc Intrinsic Value Calculation – RAMBUS INC Reports Fourth Quarter Earnings Results for Fiscal Year 2022
February 21, 2023
Earnings Overview
RAMBUS INC ($NASDAQ:RMBS) announced their earnings results for the fourth quarter of the 2022 fiscal year, which ended on February 6 2023. The total revenue of USD 15.9 million was an impressive 161.5% greater than that of the same period in the prior year. Furthermore, net income also increased 33.3% to USD 122.4 million.
Transcripts Simplified
They reported total revenue of $122.4 million for the quarter, with royalty revenue at $31.4 million, licensing billings of $64.3 million, and product revenue of $67.2 million. Operating costs, including cost of goods sold, were towards the high end of expectations at $85.4 million. Operating expenses were in line at $55.8 million. For the full year, they delivered a record $227.1 million in product revenue and generated a record $230 million in cash from operations.
They executed a $100 million accelerated share repurchase program and retired 94% of their convertible debt using existing cash on hand. After adjusting for noncash interest expense and foreign currency exchanges, non-GAAP net income for the quarter was $28.3 million.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rambus Inc. More…
| Total Revenues | Net Income | Net Margin |
| 454.79 | -14.31 | 9.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rambus Inc. More…
| Operations | Investing | Financing |
| 251.27 | -115.66 | -114.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rambus Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.01k | 233.3 | 6.98 |
Key Ratios Snapshot
Some of the financial key ratios for Rambus Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.6% | -8.3% | -1.3% |
| FCF Margin | ROE | ROA |
| 50.4% | -0.5% | -0.4% |
Market Price
The company’s opening stock price was $43.1 and it closed down by 1.1% from the last closing price of $43.6. The company saw a strong growth in their software and IT services businesses and their products have continued to find increased demand amongst customers.
Additionally, RAMBUS INC’s collaboration and strategic partnerships with global technology giants also helped to boost the company’s financial performance this quarter. The company also reported an increase in investments in research and development which is expected to lead to more innovative products in the upcoming quarters. RAMBUS INC’s management team also expressed confidence in their ability to deliver consistent and long-term growth for their shareholders going forward. Live Quote…
Analysis – Rambus Inc Intrinsic Value Calculation
GoodWhale has thoroughly analyzed RAMBUS INC‘s financials to calculate the fair value of their stock. Our proprietary Valuation Line suggests that the fair value of RAMBUS INC share is approximately $30.9. However, at present, RAMBUS INC stock is traded at $43.1, meaning it is overvalued by 39.4%. Investors who are considering buying into this company should factor this in during their decision making process. More…
Peers
Rambus Inc. is a leading developer of high-speed memory chips and interfaces. Its products are used in a variety of applications, including personal computers, servers, and mobile devices. The company competes with Goke Microelectronics Co Ltd, 3Peak Incorporated, and Suzhou Novosense Microelectronics Co Ltd in the development of high-speed memory chips and interfaces.
– Goke Microelectronics Co Ltd ($SZSE:300672)
Goke Microelectronics Co Ltd is a leading provider of semiconductor and display technologies. The company has a market cap of 11.04B as of 2022 and a return on equity of 12.85%. Goke Microelectronics Co Ltd is a leading provider of semiconductor and display technologies. The company develops and manufactures innovative semiconductor and display products for a wide range of applications. Goke Microelectronics Co Ltd’s products are used in a variety of electronic devices, including mobile phones, computers, TVs, and more.
– 3Peak Incorporated ($SHSE:688536)
Peak Incorporated is a leading provider of analytical instruments, software, and services for the global life sciences market. The company has a market cap of 30.14B and a ROE of 9.56%. Peak Incorporated provides a wide range of products and services to help scientists and researchers advance their scientific knowledge and improve human health. The company’s products are used in a variety of applications, including drug discovery, basic research, and clinical research.
– Suzhou Novosense Microelectronics Co Ltd ($SHSE:688052)
Suzhou Novosense Microelectronics Co Ltd is a Chinese company that designs, develops, manufactures, and sells microelectronic products and services. The company has a market cap of 30.12B as of 2022 and a return on equity of 6.73%. The company’s products include integrated circuits, sensors, and other electronic components. It also provides services such as design, development, and testing of microelectronic products.
Summary
Investors in RAMBUS INC have seen tremendous growth over the past fiscal year, in both revenue and net income. Fourth quarter results showed total revenue of USD 15.9 million, a 161.5% increase compared to the same period a year ago. Net income for the quarter rose 33.3% to USD 122.4 million, displaying a strong performance. As a result, RAMBUS INC stock continues to show promise for investors, with continued expansion in their respective markets.
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