Reasonable growth and debt and a high ROIC for RESMED INC (NYSE:RMD).

In this article we will dive into RESMED INC (NYSE:RMD) as a possible candidate for quality investing. Investors should always do their own research, but we noticed RESMED INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into RESMED INC's Quality Metrics.

• RESMED INC has demonstrated significant revenue growth over the past 5 years, with a 12.44% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• RESMED INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 46.86% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 0.55, RESMED INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 91.2%, RESMED INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of RESMED INC has been remarkable, with 16.83% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, RESMED INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:RMD

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, RMD scores 7 out of 10 in our fundamental rating. RMD was compared to 187 industry peers in the Health Care Equipment & Supplies industry. RMD gets an excellent profitability rating and is at the same time showing great financial health properties. RMD has a decent growth rate and is not valued too expensively. These ratings would make RMD suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of RMD

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.