Reasonable Growth, Debt Levels, and a High ROIC Make RESMED INC (NYSE:RMD) Appealing to Quality Investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if RESMED INC (NYSE:RMD) is suited for quality investing. Investors should of course do their own research, but we spotted RESMED INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of RESMED INC

• 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.
• The Debt/Free Cash Flow Ratio of RESMED INC stands at 0.5, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of RESMED INC stands at 91.2%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• RESMED INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 16.83%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• RESMED INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to RMD. RMD was compared to 191 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making RMD a very profitable company, without any liquidiy or solvency issues. RMD has a decent growth rate and is not valued too expensively. These ratings could make RMD a good candidate for quality investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

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.