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Rambus

RMBS
69
Semiconductors · Technology
Also trades as: 0QYL.L GBP 0.86 (-7.30%)
Price
$85.70
-7.09 (-7.65%)
Market Cap
$9.30B
Exchange
NASDAQ
Winston Score
69
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 22, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Exceptional
27/30
Growth
Good
11/20
Cash Flow
Exceptional
10/10
Stability
Exceptional
10/10
Valuation
Good
6/10
Ownership
Weak
2/15
Dividends
Not counted
n/a

66 of 95 counted points = Winston Score 69. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count falling — buybacks

−4.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 114.9M (2021) → 109.7M (2025)

§Winston Score History

The full picture

Rambus is a technology company that invents and licenses the designs used inside computer memory chips. Its core products are chip interface designs and security technologies that make memory faster and more secure. Major customers include large semiconductor companies like Samsung, SK Hynix, and Micron, which pay Rambus to use its patented ideas in their memory products.

Rambus earns most of its revenue through patent licensing fees and royalties, meaning it collects payments from chipmakers rather than manufacturing chips itself. It operates primarily in the United States but licenses its technology to companies worldwide, giving it a lean, high-margin business model. Its main competitive advantage is its large patent portfolio, which is difficult for rivals to work around. The key growth driver is rising demand for faster memory in data centers and AI hardware, though its main risk is that licensing agreements must be periodically renewed, and some customers have historically challenged its patents in court.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+20.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+16.7% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$188M/ year

↑ Rising (+15% vs prior year)

26.5% of revenue

1.8x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$825M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Rambus is putting 27% of revenue into R&D and that number is rising. That's 1.8x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
79.8%
Premium pricing power — 79.8% gross margin
Profit after running costs
Operating Margin
35.1%
Excellent — 35.1% operating margin
Return on the money invested
ROCE
18.0%
Strong — 18.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+17.2%
Fast-growing sales (+17.2% YoY)
Profit growth
EPS YoY
+4.2%
Modest earnings growth (+4.2% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
153%
Turns 153% of profit into real cash
Spare cash per sale
FCF Margin
44.3%
Converts sales into free cash efficiently (44.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.01
Conservative — low debt load (0.01)
Covers its interest
Interest Cover
18.12x
Comfortably covers interest (18.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
38.6x
Pricey — P/E 38.6

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+9.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (38.6 → 28.7)

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Dividends

Not applicable for this business.
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