RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
253.19 USD
-4.39 (-1.7%)
253.19 USD
0 (0%)
Taking everything into account, RMD scores 7 out of 10 in our fundamental rating. RMD was compared to 186 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 has a correct valuation and a medium growth rate. Finally RMD also has an excellent dividend rating. With these ratings, RMD could be worth investigating further for dividend and 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.
- In the past 5 years RMD always reported a positive cash flow from operatings.
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.
- With an excellent Return On Invested Capital value of 20.50%, RMD belongs to the best of the industry, outperforming 97.85% of the companies in the same industry.
- 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 3 year average ROIC (18.06%) for RMD is below the current ROIC(20.50%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 27.35%, RMD belongs to the best of the industry, outperforming 96.24% of the companies in the same industry.
- In the last couple of years the Profit Margin of RMD has grown nicely.
- With an excellent Operating Margin value of 33.49%, RMD belongs to the best of the industry, outperforming 99.46% of the companies in the same industry.
- In the last couple of years the Operating Margin of RMD has grown nicely.
- RMD has a better Gross Margin (60.05%) than 60.22% 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 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.
- 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 12.88. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
- RMD's Altman-Z score of 12.88 is amongst the best of the industry. RMD outperforms 91.40% 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.
- RMD has a better Debt to FCF ratio (0.38) 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 Debt to Equity ratio of 0.07. This is in the better half of the industry: RMD outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.88 |
ROIC/WACC2.06
WACC9.95%
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 of 2.13. This is comparable to the rest of the industry: RMD outperforms 57.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.42% 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 14.94% on average per year.
- The Revenue has grown by 9.36% in the past year. This is quite good.
- Measured over the past years, RMD shows a quite strong growth in Revenue. The Revenue has been growing by 11.72% on average per year.
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
- The Earnings Per Share is expected to grow by 10.39% 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 8.22% on average per year.
EPS Next Y15%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
EPS Next 5Y10.39%
Revenue Next Year9.24%
Revenue Next 2Y8.28%
Revenue Next 3Y7.68%
Revenue Next 5Y8.22%
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 25.57, RMD can be considered very expensive at the moment.
- RMD's Price/Earnings ratio is a bit cheaper when compared to the industry. RMD is cheaper than 79.03% 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 26.94, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 20.85, the valuation of RMD can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 81.18% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, RMD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
- RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 79.03% of the companies in the same industry.
- 89.25% of the companies in the same industry are more expensive than RMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.04 | ||
| EV/EBITDA | 18.55 |
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.
PEG (NY)1.71
PEG (5Y)1.71
EPS Next 2Y12.77%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
- RMD has a yearly dividend return of 0.92%, which is pretty low.
- RMD's Dividend Yield is rather good when compared to the industry average which is at 0.19. RMD pays more dividend than 91.94% of the companies in the same industry.
- With a Dividend Yield of 0.92, RMD pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
- The dividend of RMD is nicely growing with an annual growth rate of 6.33%!
- 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)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.
- RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.31%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
253.19
-4.39 (-1.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-29 2026-01-29
Inst Owners65.65%
Inst Owner Change0.26%
Ins Owners0.49%
Ins Owner Change1.84%
Market Cap36.96B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts74.4
Price Target298.42 (17.86%)
Short Float %8.05%
Short Ratio11.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)-0.57%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 20.85 | ||
| P/S | 7.03 | ||
| P/FCF | 21.04 | ||
| P/OCF | 19.62 | ||
| P/B | 6.04 | ||
| P/tB | 14.05 | ||
| EV/EBITDA | 18.55 |
EPS(TTM)9.9
EY3.91%
EPS(NY)12.14
Fwd EY4.8%
FCF(TTM)12.03
FCFY4.75%
OCF(TTM)12.9
OCFY5.1%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.71
PEG (5Y)1.71
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 | 12.88 |
F-Score7
WACC9.95%
ROIC/WACC2.06
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 2Y8.28%
Revenue Next 3Y7.68%
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 25.57 and the Price/Book (PB) ratio is 6.04.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.