Should you consider RESMED INC (NYSE:RMD) for quality investing?

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.

What matters for quality investors.

• The 5-year revenue growth of RESMED INC has been remarkable, with 12.44% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of RESMED INC stands at 47.57%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 0.5, RESMED INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• RESMED INC demonstrates consistent Profit Quality over the past 5 years, with a strong 91.2%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• RESMED INC has consistently achieved strong EBIT growth over the past 5 years, with a 16.83% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

Zooming in on the fundamentals.

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RMD has a correct valuation and a medium growth rate. With these ratings, RMD could be worth investigating further for quality investing!.

Our latest full fundamental report of RMD contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.