RESMED INC (RMD) Stock Fundamental Analysis
NYSE:RMD - New York Stock Exchange, Inc. - US7611521078 - Common Stock - Currency: USD
RMD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 190 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 is not valued too expensively and it also shows a decent growth rate. This makes RMD very considerable 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
The Return On Assets of RMD (17.49%) is better than 96.81% of its industry peers.
With an excellent Return On Equity value of 23.77%, RMD belongs to the best of the industry, outperforming 96.28% of the companies in the same industry.
RMD's Return On Invested Capital of 20.12% is amongst the best of the industry. RMD outperforms 98.94% 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 8.14%.
The last Return On Invested Capital (20.12%) for RMD is above the 3 year average (17.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 23.77% | ||
| ROIC | 20.12% |
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
With an excellent Profit Margin value of 25.35%, RMD belongs to the best of the industry, outperforming 95.21% of the companies in the same industry.
In the last couple of years the Profit Margin of RMD has grown nicely.
The Operating Margin of RMD (31.67%) is better than 98.40% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
RMD has a Gross Margin (58.39%) 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 | 31.67% | ||
| PM (TTM) | 25.35% | ||
| GM | 58.39% |
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.
Compared to 1 year ago, RMD has about the same amount of shares outstanding.
Compared to 5 years ago, RMD has more shares outstanding
RMD has a better debt/assets ratio than last year.
2.2 Solvency
RMD has an Altman-Z score of 13.68. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RMD (13.68) is better than 92.55% of its industry peers.
RMD has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.49, RMD belongs to the best of the industry, outperforming 92.02% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that RMD is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.13, RMD perfoms like the industry average, outperforming 56.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 13.68 |
ROIC/WACC2.24
WACC9%
2.3 Liquidity
RMD has a Current Ratio of 3.33. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD's Current ratio of 3.33 is in line compared to the rest of the industry. RMD outperforms 59.04% of its industry peers.
RMD has a Quick Ratio of 2.29. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD's Quick ratio of 2.29 is in line compared to the rest of the industry. RMD outperforms 55.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
RMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.00%, which is quite impressive.
RMD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.19% yearly.
Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 9.38% in the last year.
The Revenue has been growing by 12.44% on average over the past years. This is quite good.
EPS 1Y (TTM)30%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%29.26%
Revenue 1Y (TTM)9.38%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%10.26%
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.
The Revenue is expected to grow by 8.37% on average over the next years. This is quite good.
EPS Next Y23.45%
EPS Next 2Y16.65%
EPS Next 3Y14.18%
EPS Next 5Y12.13%
Revenue Next Year9.12%
Revenue Next 2Y8.3%
Revenue Next 3Y7.93%
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
RMD is valuated quite expensively with a Price/Earnings ratio of 26.20.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 78.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 30.30, RMD is valued at the same level.
RMD is valuated rather expensively with a Price/Forward Earnings ratio of 22.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 79.26% of the companies listed in the same industry.
RMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 22.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 78.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 85.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.58 | ||
| EV/EBITDA | 19.12 |
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.
RMD's earnings are expected to grow with 14.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)1.62
EPS Next 2Y16.65%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 1.66, RMD pays a better dividend. On top of this RMD pays more dividend than 93.09% of the companies listed 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 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)5.38%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
23.76% of the earnings are spent on dividend by RMD. This is a low number and sustainable payout ratio.
RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.76%
EPS Next 2Y16.65%
EPS Next 3Y14.18%
NYSE:RMD (2/21/2025, 3:40:52 PM)
231.57
-1.22 (-0.52%)
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 Change4.62%
Ins Owners0.69%
Ins Owner Change-2.12%
Market Cap34.01B
Analysts73.64
Price Target262.27 (13.26%)
Short Float %5.7%
Short Ratio9.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend1.92
Dividend Growth(5Y)5.38%
DP23.76%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.4%
Min EPS beat(2)3.93%
Max EPS beat(2)6.87%
EPS beat(4)3
Avg EPS beat(4)5.17%
Min EPS beat(4)-0.37%
Max EPS beat(4)10.24%
EPS beat(8)6
Avg EPS beat(8)2.91%
EPS beat(12)8
Avg EPS beat(12)1.42%
EPS beat(16)11
Avg EPS beat(16)1.68%
Revenue beat(2)2
Avg Revenue beat(2)1.45%
Min Revenue beat(2)0.16%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)0.85%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)8
Avg Revenue beat(16)0.43%
PT rev (1m)2.96%
PT rev (3m)8.07%
EPS NQ rev (1m)-1.45%
EPS NQ rev (3m)6.02%
EPS NY rev (1m)0.89%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 22.01 | ||
| P/S | 6.9 | ||
| P/FCF | 24.58 | ||
| P/OCF | 23.04 | ||
| P/B | 6.47 | ||
| P/tB | 16.92 | ||
| EV/EBITDA | 19.12 |
EPS(TTM)8.84
EY3.82%
EPS(NY)10.52
Fwd EY4.54%
FCF(TTM)9.42
FCFY4.07%
OCF(TTM)10.05
OCFY4.34%
SpS33.55
BVpS35.77
TBVpS13.68
PEG (NY)1.12
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 23.77% | ||
| ROCE | 24.81% | ||
| ROIC | 20.12% | ||
| ROICexc | 21.94% | ||
| ROICexgc | 50.13% | ||
| OM | 31.67% | ||
| PM (TTM) | 25.35% | ||
| GM | 58.39% | ||
| FCFM | 28.09% |
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-Score9
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 39.18% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 64.4 | ||
| Cash Conversion | 82.18% | ||
| Profit Quality | 110.82% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 13.68 |
F-Score9
WACC9%
ROIC/WACC2.24
Cap/Depr(3y)67.15%
Cap/Depr(5y)68.87%
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)30%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%29.26%
EPS Next Y23.45%
EPS Next 2Y16.65%
EPS Next 3Y14.18%
EPS Next 5Y12.13%
Revenue 1Y (TTM)9.38%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%10.26%
Revenue Next Year9.12%
Revenue Next 2Y8.3%
Revenue Next 3Y7.93%
Revenue Next 5Y8.37%
EBIT growth 1Y28.4%
EBIT growth 3Y14.69%
EBIT growth 5Y16.83%
EBIT Next Year30.43%
EBIT Next 3Y15.56%
EBIT Next 5Y12.55%
FCF growth 1Y524.38%
FCF growth 3Y27.55%
FCF growth 5Y27.5%
OCF growth 1Y298.76%
OCF growth 3Y23.9%
OCF growth 5Y25%