RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
240.87 USD
-2.21 (-0.91%)
240.87 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to RMD. RMD was compared to 186 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 is not valued too expensively and it also shows a decent growth rate. Finally RMD also has an excellent dividend rating. These ratings could make RMD a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
In the past year RMD was profitable.
RMD had a positive operating cash flow in the past year.
Each year in the past 5 years RMD has been profitable.
Each year in the past 5 years RMD had a positive operating cash flow.
1.2 Ratios
RMD has a better Return On Assets (17.31%) than 97.85% of its industry peers.
With an excellent Return On Equity value of 23.49%, RMD belongs to the best of the industry, outperforming 96.24% of the companies in the same industry.
RMD has a better Return On Invested Capital (20.50%) than 97.85% of its industry peers.
RMD had an Average Return On Invested Capital over the past 3 years of 18.06%. This is significantly above the industry average of 8.84%.
The last Return On Invested Capital (20.50%) for RMD is above the 3 year average (18.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 23.49% | ||
| ROIC | 20.5% |
ROA(3y)15.1%
ROA(5y)14.12%
ROE(3y)22.06%
ROE(5y)21.17%
ROIC(3y)18.06%
ROIC(5y)18.51%
1.3 Margins
RMD's Profit Margin of 27.35% is amongst the best of the industry. RMD outperforms 96.24% of its industry peers.
In the last couple of years the Profit Margin of RMD has grown nicely.
RMD's Operating Margin of 33.49% is amongst the best of the industry. RMD outperforms 99.46% of its industry peers.
RMD's Operating Margin has improved in the last couple of years.
RMD has a Gross Margin (60.05%) which is comparable to the rest of the industry.
RMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.49% | ||
| PM (TTM) | 27.35% | ||
| GM | 60.05% |
OM growth 3Y5.43%
OM growth 5Y3.67%
PM growth 3Y7.71%
PM growth 5Y5.3%
GM growth 3Y1.6%
GM growth 5Y0.42%
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.
RMD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RMD has more shares outstanding
RMD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.39 indicates that RMD is not in any danger for bankruptcy at the moment.
RMD has a Altman-Z score of 12.39. This is amongst the best in the industry. RMD outperforms 91.40% of its industry peers.
The Debt to FCF ratio of RMD is 0.38, which is an excellent value as it means it would take RMD, only 0.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.38, RMD belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.07, RMD is doing good in the industry, outperforming 67.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.39 |
ROIC/WACC2.05
WACC9.99%
2.3 Liquidity
RMD has a Current Ratio of 2.89. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD has a Current ratio (2.89) which is comparable to the rest of the industry.
RMD has a Quick Ratio of 2.13. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD has a Quick ratio (2.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
RMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.42%, which is quite good.
Measured over the past years, RMD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.94% on average per year.
The Revenue has grown by 9.36% in the past year. This is quite good.
The Revenue has been growing by 11.72% on average over the past years. This is quite good.
EPS 1Y (TTM)19.42%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.91%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
3.2 Future
RMD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.39% yearly.
The Revenue is expected to grow by 8.22% on average over the next years. This is quite good.
EPS Next Y15%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
EPS Next 5Y10.39%
Revenue Next Year9.24%
Revenue Next 2Y8.29%
Revenue Next 3Y7.69%
Revenue Next 5Y8.22%
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.
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
Based on the Price/Earnings ratio of 24.33, the valuation of RMD can be described as rather expensive.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 78.49% of the companies are valued more expensively.
RMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 19.83, the valuation of RMD can be described as rather expensive.
RMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMD is cheaper than 81.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. RMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than the industry average as 79.03% of the companies are valued more expensively.
RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 89.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 17.63 |
4.3 Compensation for Growth
The 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.
PEG (NY)1.62
PEG (5Y)1.63
EPS Next 2Y12.77%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, RMD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.20, RMD pays a better dividend. On top of this RMD pays more dividend than 93.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of RMD grows each year by 6.33%, which is quite nice.
RMD has paid a dividend for at least 10 years, which is a reliable track record.
RMD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.33%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
RMD pays out 22.31% of its income as dividend. This is a sustainable payout ratio.
The dividend of RMD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.31%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
240.87
-2.21 (-0.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners65.59%
Inst Owner Change0.43%
Ins Owners0.5%
Ins Owner Change1.91%
Market Cap35.16B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts76
Price Target298.42 (23.89%)
Short Float %7.28%
Short Ratio9.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.29%
Min EPS beat(2)-1.16%
Max EPS beat(2)1.74%
EPS beat(4)2
Avg EPS beat(4)0.99%
Min EPS beat(4)-1.16%
Max EPS beat(4)3.93%
EPS beat(8)5
Avg EPS beat(8)3.04%
EPS beat(12)8
Avg EPS beat(12)2.07%
EPS beat(16)9
Avg EPS beat(16)0.8%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.75%
Revenue beat(8)5
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)-0.34%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 19.83 | ||
| P/S | 6.69 | ||
| P/FCF | 20.02 | ||
| P/OCF | 18.67 | ||
| P/B | 5.74 | ||
| P/tB | 13.37 | ||
| EV/EBITDA | 17.63 |
EPS(TTM)9.9
EY4.11%
EPS(NY)12.14
Fwd EY5.04%
FCF(TTM)12.03
FCFY5%
OCF(TTM)12.9
OCFY5.36%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.62
PEG (5Y)1.63
Graham Number96.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 23.49% | ||
| ROCE | 24.97% | ||
| ROIC | 20.5% | ||
| ROICexc | 25.5% | ||
| ROICexgc | 66.39% | ||
| OM | 33.49% | ||
| PM (TTM) | 27.35% | ||
| GM | 60.05% | ||
| FCFM | 33.41% |
ROA(3y)15.1%
ROA(5y)14.12%
ROE(3y)22.06%
ROE(5y)21.17%
ROIC(3y)18.06%
ROIC(5y)18.51%
ROICexc(3y)19.85%
ROICexc(5y)20.16%
ROICexgc(3y)47.68%
ROICexgc(5y)50.03%
ROCE(3y)22%
ROCE(5y)22.55%
ROICexgc growth 3Y8.61%
ROICexgc growth 5Y0.25%
ROICexc growth 3Y5.42%
ROICexc growth 5Y4.3%
OM growth 3Y5.43%
OM growth 5Y3.67%
PM growth 3Y7.71%
PM growth 5Y5.3%
GM growth 3Y1.6%
GM growth 5Y0.42%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 65.89% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 63.08 | ||
| Cash Conversion | 96.42% | ||
| Profit Quality | 122.16% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | 12.39 |
F-Score7
WACC9.99%
ROIC/WACC2.05
Cap/Depr(3y)65.59%
Cap/Depr(5y)70.36%
Cap/Sales(3y)2.53%
Cap/Sales(5y)3.12%
Profit Quality(3y)102.06%
Profit Quality(5y)92.37%
High Growth Momentum
Growth
EPS 1Y (TTM)19.42%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.91%
EPS Next Y15%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.24%
Revenue Next 2Y8.29%
Revenue Next 3Y7.69%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year27.03%
EBIT Next 3Y13.98%
EBIT Next 5Y11.02%
FCF growth 1Y121.67%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y101.45%
OCF growth 3Y70.86%
OCF growth 5Y16.9%
RESMED INC / RMD FAQ
What is the ChartMill fundamental rating of RESMED INC (RMD) stock?
ChartMill assigns a fundamental rating of 7 / 10 to RMD.
Can you provide the valuation status for RESMED INC?
ChartMill assigns a valuation rating of 5 / 10 to RESMED INC (RMD). This can be considered as Fairly Valued.
What is the profitability of RMD stock?
RESMED INC (RMD) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for RMD stock?
The Price/Earnings (PE) ratio for RESMED INC (RMD) is 24.33 and the Price/Book (PB) ratio is 5.74.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.