RESMED INC (RMD) Stock Fundamental Analysis
NYSE:RMD - New York Stock Exchange, Inc. - US7611521078 - Common Stock
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 correct valuation and a medium growth rate. These ratings could make RMD a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RMD had positive earnings in the past year.
In the past year RMD had a positive cash flow from operations.
RMD had positive earnings in each of the past 5 years.
Each year in the past 5 years RMD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.41%, RMD belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
RMD has a Return On Equity of 21.42%. This is amongst the best in the industry. RMD outperforms 95.77% of its industry peers.
RMD has a Return On Invested Capital of 19.03%. This is amongst the best in the industry. RMD outperforms 97.88% of its industry peers.
RMD had an Average Return On Invested Capital over the past 3 years of 17.61%. This is significantly above the industry average of 8.08%.
The last Return On Invested Capital (19.03%) for RMD is above the 3 year average (17.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 21.42% | ||
| ROIC | 19.03% |
ROA(3y)14.48%
ROA(5y)13.41%
ROE(3y)21.97%
ROE(5y)21.45%
ROIC(3y)17.61%
ROIC(5y)17.76%
1.3 Margins
Looking at the Profit Margin, with a value of 23.15%, RMD belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
RMD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.84%, RMD belongs to the top of the industry, outperforming 97.88% of the companies in the same industry.
RMD's Operating Margin has improved in the last couple of years.
RMD has a Gross Margin (57.67%) which is in line with its industry peers.
In the last couple of years the Gross Margin of RMD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.84% | ||
| PM (TTM) | 23.15% | ||
| GM | 57.67% |
OM growth 3Y0.96%
OM growth 5Y3.9%
PM growth 3Y13.65%
PM growth 5Y7.02%
GM growth 3Y-0.59%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMD is creating value.
The number of shares outstanding for RMD remains at a similar level compared to 1 year ago.
RMD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RMD has an improved debt to assets ratio.
2.2 Solvency
RMD has an Altman-Z score of 12.95. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD has a better Altman-Z score (12.95) than 89.95% of its industry peers.
The Debt to FCF ratio of RMD is 0.50, which is an excellent value as it means it would take RMD, only 0.50 years of fcf income to pay off all of its debts.
RMD's Debt to FCF ratio of 0.50 is amongst the best of the industry. RMD outperforms 91.53% of its industry peers.
RMD has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
RMD has a Debt to Equity ratio of 0.13. This is comparable to the rest of the industry: RMD outperforms 57.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 12.95 |
ROIC/WACC2.1
WACC9.08%
2.3 Liquidity
RMD has a Current Ratio of 2.92. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD has a Current ratio (2.92) which is in line with its industry peers.
RMD has a Quick Ratio of 1.91. This is a normal value and indicates that RMD is financially healthy and should not expect problems in meeting its short term obligations.
RMD has a Quick ratio (1.91) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.99% over the past year.
RMD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.19% yearly.
RMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.88%.
RMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.44% yearly.
EPS 1Y (TTM)25.99%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%34.15%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 12.13% on average over the next years. This is quite good.
Based on estimates for the next years, RMD will show a quite strong growth in Revenue. The Revenue will grow by 8.37% on average per year.
EPS Next Y22.36%
EPS Next 2Y16%
EPS Next 3Y13.6%
EPS Next 5Y12.13%
Revenue Next Year9.27%
Revenue Next 2Y8.28%
Revenue Next 3Y7.82%
Revenue Next 5Y8.37%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.92, the valuation of RMD can be described as expensive.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than 77.25% of the companies in the same industry.
RMD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.05, RMD is valued on the expensive side.
78.84% of the companies in the same industry are more expensive than RMD, based on the Price/Forward Earnings ratio.
RMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 23.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.13 | ||
| EV/EBITDA | 21.13 |
4.3 Compensation for Growth
RMD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RMD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RMD's earnings are expected to grow with 13.60% in the coming years.
PEG (NY)1.29
PEG (5Y)1.79
EPS Next 2Y16%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.89%, which is pretty low.
RMD's Dividend Yield is rather good when compared to the industry average which is at 1.64. RMD pays more dividend than 92.59% of the companies in the same industry.
With a Dividend Yield of 0.89, RMD pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of RMD has a limited annual growth rate of 5.38%.
RMD has been paying a dividend for at least 10 years, so it has a reliable track record.
RMD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.38%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
RMD pays out 26.02% of its income as dividend. This is a sustainable payout ratio.
RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.02%
EPS Next 2Y16%
EPS Next 3Y13.6%
RESMED INC
NYSE:RMD (1/17/2025, 8:24:50 PM)
After market: 239.78 0 (0%)239.78
+2.65 (+1.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners60.35%
Inst Owner Change0.23%
Ins Owners0.69%
Ins Owner Change-1.59%
Market Cap35.20B
Analysts74.29
Price Target254.73 (6.23%)
Short Float %5.43%
Short Ratio9.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend1.92
Dividend Growth(5Y)5.38%
DP26.02%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.25%
Min EPS beat(2)-0.37%
Max EPS beat(2)6.87%
EPS beat(4)3
Avg EPS beat(4)5.1%
Min EPS beat(4)-0.37%
Max EPS beat(4)10.24%
EPS beat(8)6
Avg EPS beat(8)2.62%
EPS beat(12)7
Avg EPS beat(12)0.74%
EPS beat(16)11
Avg EPS beat(16)2.05%
Revenue beat(2)1
Avg Revenue beat(2)1.13%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)1.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.17%
Revenue beat(16)8
Avg Revenue beat(16)0.47%
PT rev (1m)0.01%
PT rev (3m)9.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.96%
EPS NY rev (1m)0%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.22%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 23.05 | ||
| P/S | 7.32 | ||
| P/FCF | 26.13 | ||
| P/OCF | 24.44 | ||
| P/B | 6.78 | ||
| P/tB | 19.23 | ||
| EV/EBITDA | 21.13 |
EPS(TTM)8.29
EY3.46%
EPS(NY)10.4
Fwd EY4.34%
FCF(TTM)9.18
FCFY3.83%
OCF(TTM)9.81
OCFY4.09%
SpS32.75
BVpS35.39
TBVpS12.47
PEG (NY)1.29
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 21.42% | ||
| ROCE | 23.46% | ||
| ROIC | 19.03% | ||
| ROICexc | 20.4% | ||
| ROICexgc | 47.57% | ||
| OM | 30.84% | ||
| PM (TTM) | 23.15% | ||
| GM | 57.67% | ||
| FCFM | 28.02% |
ROA(3y)14.48%
ROA(5y)13.41%
ROE(3y)21.97%
ROE(5y)21.45%
ROIC(3y)17.61%
ROIC(5y)17.76%
ROICexc(3y)18.48%
ROICexc(5y)19.04%
ROICexgc(3y)42.98%
ROICexgc(5y)49.28%
ROCE(3y)21.71%
ROCE(5y)21.9%
ROICexcg growth 3Y-8.9%
ROICexcg growth 5Y-1.39%
ROICexc growth 3Y-2.46%
ROICexc growth 5Y5.3%
OM growth 3Y0.96%
OM growth 5Y3.9%
PM growth 3Y13.65%
PM growth 5Y7.02%
GM growth 3Y-0.59%
GM growth 5Y-0.23%
F-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.5 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 52.98% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 38.91 | ||
| Cash Conversion | 86.83% | ||
| Profit Quality | 121.03% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 12.95 |
F-Score8
WACC9.08%
ROIC/WACC2.1
Cap/Depr(3y)81.28%
Cap/Depr(5y)77.35%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.44%
Profit Quality(3y)71.12%
Profit Quality(5y)91.2%
High Growth Momentum
Growth
EPS 1Y (TTM)25.99%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%34.15%
EPS Next Y22.36%
EPS Next 2Y16%
EPS Next 3Y13.6%
EPS Next 5Y12.13%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%11.08%
Revenue Next Year9.27%
Revenue Next 2Y8.28%
Revenue Next 3Y7.82%
Revenue Next 5Y8.37%
EBIT growth 1Y27.3%
EBIT growth 3Y14.69%
EBIT growth 5Y16.83%
EBIT Next Year30.16%
EBIT Next 3Y14.9%
EBIT Next 5Y12.44%
FCF growth 1Y341.83%
FCF growth 3Y27.55%
FCF growth 5Y27.5%
OCF growth 1Y212.16%
OCF growth 3Y23.9%
OCF growth 5Y25%