RESMED INC (RMD) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:RMD • US7611521078

258.31 USD
+0.7 (+0.27%)
At close: Jan 30, 2026
258.31 USD
0 (0%)
After Hours: 1/30/2026, 8:17:10 PM
Fundamental Rating

7

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. 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. Finally RMD also has an excellent dividend rating. This makes RMD very considerable for dividend and quality investing!


Dividend Valuation Growth Profitability Health

9

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.
  • Each year in the past 5 years RMD has been profitable.
  • In the past 5 years RMD always reported a positive cash flow from operatings.
RMD Yearly Net Income VS EBIT VS OCF VS FCFRMD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • RMD's Return On Assets of 17.31% is amongst the best of the industry. RMD outperforms 97.85% of its industry peers.
  • The Return On Equity of RMD (23.49%) is better than 96.24% of its industry peers.
  • RMD has a Return On Invested Capital of 20.50%. This is amongst the best in the industry. RMD outperforms 97.85% 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 8.81%.
  • The 3 year average ROIC (18.06%) for RMD is below the current ROIC(20.50%), indicating increased profibility in the last year.
Industry RankSector 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%
RMD Yearly ROA, ROE, ROICRMD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • RMD has a better Profit Margin (27.35%) than 96.77% of its industry peers.
  • RMD's Profit Margin has improved in the last couple of years.
  • RMD's Operating Margin of 33.49% is amongst the best of the industry. RMD outperforms 99.46% of its industry peers.
  • In the last couple of years the Operating Margin of RMD has grown nicely.
  • The Gross Margin of RMD (60.05%) is better than 60.75% of its industry peers.
  • In the last couple of years the Gross Margin of RMD has remained more or less at the same level.
Industry RankSector 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%
RMD Yearly Profit, Operating, Gross MarginsRMD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

8

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 has been reduced compared to 1 year ago.
  • The number of shares outstanding for RMD has been increased compared to 5 years ago.
  • RMD has a better debt/assets ratio than last year.
RMD Yearly Shares OutstandingRMD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
RMD Yearly Total Debt VS Total AssetsRMD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 13.09 indicates that RMD is not in any danger for bankruptcy at the moment.
  • RMD's Altman-Z score of 13.09 is amongst the best of the industry. RMD outperforms 92.47% of its industry peers.
  • RMD has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
  • The Debt to FCF ratio of RMD (0.38) is better than 91.40% of its industry peers.
  • RMD has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
  • RMD has a better Debt to Equity ratio (0.07) than 67.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.38
Altman-Z 13.09
ROIC/WACC2.03
WACC10.08%
RMD Yearly LT Debt VS Equity VS FCFRMD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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.
  • The Current ratio of RMD (2.89) 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 of 2.13. This is comparable to the rest of the industry: RMD outperforms 57.53% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 2.13
RMD Yearly Current Assets VS Current LiabilitesRMD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

6

3. Growth

3.1 Past

  • RMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.29%, 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 9.84% in the past year. This is quite good.
  • RMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.72% yearly.
EPS 1Y (TTM)16.29%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.64%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%

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 10.39% on average per year.
  • 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 Year9.28%
Revenue Next 2Y8.32%
Revenue Next 3Y7.72%
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.
  • 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.
RMD Yearly Revenue VS EstimatesRMD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
RMD Yearly EPS VS EstimatesRMD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.13, which means the current valuation is very expensive for RMD.
  • Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 79.57% of the companies listed in the same industry.
  • RMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
  • With a Price/Forward Earnings ratio of 21.27, RMD is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, RMD is valued cheaper than 80.11% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (25.57), we can say RMD is valued inline with the index average.
Industry RankSector Rank
PE 25.13
Fwd PE 21.27
RMD Price Earnings VS Forward Price EarningsRMD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than the industry average as 77.42% 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 RankSector Rank
P/FCF 21.47
EV/EBITDA 18.94
RMD Per share dataRMD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The 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.
PEG (NY)1.68
PEG (5Y)1.68
EPS Next 2Y12.77%
EPS Next 3Y11.27%

7

5. Dividend

5.1 Amount

  • RMD has a yearly dividend return of 0.93%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.21, RMD pays a better dividend. On top of this RMD pays more dividend than 91.94% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, RMD's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.93%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.33%
Div Incr Years12
Div Non Decr Years12
RMD Yearly Dividends per shareRMD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

  • 22.31% of the earnings are spent on dividend by RMD. This is a low number and 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%
RMD Yearly Income VS Free CF VS DividendRMD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
RMD Dividend Payout.RMD Dividend Payout, showing the Payout Ratio.RMD Dividend Payout.PayoutRetained Earnings

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 25.13 and the Price/Book (PB) ratio is 6.16.


What is the financial health of RESMED INC (RMD) stock?

The financial health rating of RESMED INC (RMD) is 8 / 10.