RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
250.04 USD
-6.51 (-2.54%)
250.04 USD
0 (0%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RMD has a decent growth rate and is not valued too expensively. Finally RMD also has an excellent dividend rating. This makes RMD very considerable 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
With an excellent Return On Assets value of 17.31%, RMD belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
With an excellent Return On Equity value of 23.49%, RMD belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
The Return On Invested Capital of RMD (20.50%) is better than 97.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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 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 has a Profit Margin of 27.35%. This is amongst the best in the industry. RMD outperforms 96.26% of its industry peers.
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 99.47% of the companies in the same industry.
In the last couple of years the Operating Margin of RMD has grown nicely.
RMD has a Gross Margin of 60.05%. This is comparable to the rest of the industry: RMD outperforms 58.82% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMD is creating value.
The number of shares outstanding for RMD has been reduced compared to 1 year ago.
Compared to 5 years ago, RMD has more shares outstanding
The debt/assets ratio for RMD has been reduced compared to a year ago.
2.2 Solvency
RMD has an Altman-Z score of 12.76. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD's Altman-Z score of 12.76 is amongst the best of the industry. RMD outperforms 91.98% 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 Debt to FCF ratio of 0.38. This is amongst the best in the industry. RMD outperforms 91.98% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
RMD has a better Debt to Equity ratio (0.07) than 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.76 |
ROIC/WACC2.36
WACC8.68%
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.
With a Current ratio value of 2.89, RMD perfoms like the industry average, outperforming 55.62% of the companies in the same industry.
A Quick Ratio of 2.13 indicates that RMD has no problem at all paying its short term obligations.
RMD's Quick ratio of 2.13 is in line compared to the rest of the industry. RMD outperforms 55.62% of 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 Y14.96%
EPS Next 2Y12.71%
EPS Next 3Y11.25%
EPS Next 5Y10.39%
Revenue Next Year9.24%
Revenue Next 2Y8.28%
Revenue Next 3Y7.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
RMD is valuated quite expensively with a Price/Earnings ratio of 25.26.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than 76.47% of the companies in the same industry.
RMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 20.61 indicates a rather expensive valuation of RMD.
RMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMD is cheaper than 80.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (23.56), we can say RMD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 20.61 |
4.2 Price Multiples
RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 78.61% of the companies in the same industry.
87.17% 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 | 20.78 | ||
| EV/EBITDA | 18.32 |
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)1.69
PEG (5Y)1.69
EPS Next 2Y12.71%
EPS Next 3Y11.25%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.95%, which is pretty low.
RMD's Dividend Yield is rather good when compared to the industry average which is at 1.74. RMD pays more dividend than 93.58% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 2Y12.71%
EPS Next 3Y11.25%
250.04
-6.51 (-2.54%)
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 Change0.42%
Ins Owners0.5%
Ins Owner Change1.91%
Market Cap36.50B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts76
Price Target300.12 (20.03%)
Short Float %7.34%
Short Ratio9.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-Date
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)1.66%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 20.61 | ||
| P/S | 6.94 | ||
| P/FCF | 20.78 | ||
| P/OCF | 19.38 | ||
| P/B | 5.96 | ||
| P/tB | 13.88 | ||
| EV/EBITDA | 18.32 |
EPS(TTM)9.9
EY3.96%
EPS(NY)12.13
Fwd EY4.85%
FCF(TTM)12.03
FCFY4.81%
OCF(TTM)12.9
OCFY5.16%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.69
PEG (5Y)1.69
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 | 12.76 |
F-Score7
WACC8.68%
ROIC/WACC2.36
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 Y14.96%
EPS Next 2Y12.71%
EPS Next 3Y11.25%
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 3Y7.74%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year26.39%
EBIT Next 3Y13.82%
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.
What is the valuation status for RMD stock?
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 25.26 and the Price/Book (PB) ratio is 5.96.
Is the dividend of RESMED INC sustainable?
The dividend rating of RESMED INC (RMD) is 7 / 10 and the dividend payout ratio is 22.31%.