RESMED INC (RMD)
US7611521078 - Common Stock
RMD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make RMD suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year RMD was profitable.
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
RMD has a better Return On Assets (15.41%) than 95.72% of its industry peers.
With an excellent Return On Equity value of 21.42%, RMD belongs to the best of the industry, outperforming 95.72% of the companies in the same industry.
RMD has a better Return On Invested Capital (19.03%) than 97.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMD is significantly above the industry average of 8.20%.
The 3 year average ROIC (17.61%) for RMD is below the current ROIC(19.03%), indicating increased profibility in the last year.
| 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
RMD has a Profit Margin of 23.15%. This is amongst the best in the industry. RMD outperforms 95.19% of its industry peers.
RMD's Profit Margin has improved in the last couple of years.
RMD's Operating Margin of 30.84% is amongst the best of the industry. RMD outperforms 97.86% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
With a Gross Margin value of 57.67%, RMD perfoms like the industry average, outperforming 54.01% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMD is creating value.
The number of shares outstanding for RMD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RMD has more shares outstanding
Compared to 1 year ago, RMD has an improved debt to assets ratio.
2.2 Solvency
RMD has an Altman-Z score of 13.19. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD has a better Altman-Z score (13.19) than 89.84% of its industry peers.
RMD has a debt to FCF ratio of 0.50. This is a very positive value and a sign of high solvency as it would only need 0.50 years to pay back of all of its debts.
RMD has a better Debt to FCF ratio (0.50) than 91.98% 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.
Looking at the Debt to Equity ratio, with a value of 0.13, RMD is in line with its industry, outperforming 56.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 13.19 |
ROIC/WACC2.15
WACC8.87%
2.3 Liquidity
A Current Ratio of 2.92 indicates that RMD has no problem at all paying its short term obligations.
RMD has a Current ratio of 2.92. This is comparable to the rest of the industry: RMD outperforms 52.94% of its industry peers.
A Quick Ratio of 1.91 indicates that RMD should not have too much problems paying its short term obligations.
RMD has a Quick ratio of 1.91. This is comparable to the rest of the industry: RMD outperforms 46.52% of its industry peers.
| 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.
Measured over the past years, RMD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.19% on average per year.
The Revenue has grown by 9.88% in the past year. This is quite good.
The Revenue has been growing by 12.44% on average over the past years. This is quite good.
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
Based on estimates for the next years, RMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.13% on average per year.
RMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.37% yearly.
EPS Next Y22.36%
EPS Next 2Y15.95%
EPS Next 3Y13.6%
EPS Next 5Y12.13%
Revenue Next Year9.14%
Revenue Next 2Y8.14%
Revenue Next 3Y7.97%
Revenue Next 5Y8.37%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.77, RMD can be considered very expensive at the moment.
76.47% of the companies in the same industry are more expensive than RMD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.83, RMD is valued at the same level.
A Price/Forward Earnings ratio of 22.15 indicates a rather expensive valuation of RMD.
RMD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RMD is cheaper than 78.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (22.65), we can say RMD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.77 | ||
| Fwd PE | 22.15 |
4.2 Price Multiples
RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 77.54% 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 86.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.09 | ||
| EV/EBITDA | 21.62 |
4.3 Compensation for Growth
RMD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of RMD may justify a higher PE ratio.
RMD's earnings are expected to grow with 13.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)1.71
EPS Next 2Y15.95%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.87%, which is pretty low.
RMD's Dividend Yield is rather good when compared to the industry average which is at 1.62. RMD pays more dividend than 92.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of RMD has a limited annual growth rate of 5.38%.
RMD has paid a dividend for at least 10 years, which is a reliable track record.
RMD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y15.95%
EPS Next 3Y13.6%
RESMED INC
NYSE:RMD (12/18/2024, 8:04:00 PM)
After market: 229.01 -1.2 (-0.52%)230.21
-12.41 (-5.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap33.79B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Dividend Growth(5Y)
DP
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Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.77 | ||
| Fwd PE | 22.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.24
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 21.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.84% | ||
| PM (TTM) | 23.15% | ||
| GM | 57.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.99%
EPS 3Y13.19%
EPS 5Y
EPS Q2Q%
EPS Next Y22.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.88%
Revenue growth 3Y13.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y