RESMED INC (RMD)
US7611521078 - Common Stock
We assign a fundamental rating of 7 out of 10 to RMD. RMD was compared to 188 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 decent growth rate and is not valued too expensively. These ratings could make RMD a good candidate for 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.
In the past 5 years RMD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.41%, RMD belongs to the best of the industry, outperforming 96.79% of the companies in the same industry.
The Return On Equity of RMD (21.42%) is better than 95.72% of its industry peers.
RMD's Return On Invested Capital of 19.03% is amongst the best of the industry. RMD outperforms 97.33% 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 8.30%.
The 3 year average ROIC (17.61%) for RMD is below the current ROIC(19.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 21.42% | ||
| ROIC | 19.03% |
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
RMD has a better Profit Margin (23.15%) than 95.72% of its industry peers.
In the last couple of years the Profit Margin of RMD has grown nicely.
The Operating Margin of RMD (30.84%) is better than 97.86% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
With a Gross Margin value of 57.67%, RMD perfoms like the industry average, outperforming 52.41% of the companies in the same industry.
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 | 30.84% | ||
| PM (TTM) | 23.15% | ||
| GM | 57.67% |
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
RMD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RMD has about the same amount of shares outstanding.
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 12.84. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD has a Altman-Z score of 12.84. This is amongst the best in the industry. RMD outperforms 89.30% of its industry peers.
The Debt to FCF ratio of RMD is 0.50, which is an excellent value as it means it would take RMD, only 0.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RMD (0.50) is better than 91.44% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that RMD is not too dependend on debt financing.
RMD has a Debt to Equity ratio of 0.13. This is comparable to the rest of the industry: RMD outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 12.84 |
ROIC/WACC2.14
WACC8.9%
2.3 Liquidity
RMD has a Current Ratio of 2.92. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RMD (2.92) is comparable to the rest of the industry.
A Quick Ratio of 1.91 indicates that RMD should not have too much problems paying its short term obligations.
The Quick ratio of RMD (1.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.99% over the past year.
The Earnings Per Share has been growing by 16.19% on average over the past years. This is quite good.
Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 9.88% 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)25.99%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%34.15%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%11.08%
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 10.62% yearly.
RMD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.47% yearly.
EPS Next Y22.36%
EPS Next 2Y15.95%
EPS Next 3Y13.48%
EPS Next 5Y10.62%
Revenue Next Year9.14%
Revenue Next 2Y8.14%
Revenue Next 3Y7.79%
Revenue Next 5Y7.47%
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
The Price/Earnings ratio is 28.32, which means the current valuation is very expensive for RMD.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 77.54% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (28.53), we can say RMD is valued inline with the index average.
RMD is valuated rather expensively with a Price/Forward Earnings ratio of 22.59.
Based on the Price/Forward Earnings ratio, RMD is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (23.40), we can say RMD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 22.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 77.54% of the companies listed in the same industry.
RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 87.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.58 | ||
| EV/EBITDA | 20.92 |
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.
RMD's earnings are expected to grow with 13.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)1.75
EPS Next 2Y15.95%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 1.67, RMD pays a better dividend. On top of this RMD pays more dividend than 93.58% of the companies listed in the same industry.
With a Dividend Yield of 0.92, RMD pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
RMD pays out 26.02% 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.
DP26.02%
EPS Next 2Y15.95%
EPS Next 3Y13.48%
RESMED INC
NYSE:RMD (11/15/2024, 8:04:00 PM)
After market: 234.74 0 (0%)234.74
+3.31 (+1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 22.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.27
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 21.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.84% | ||
| PM (TTM) | 23.15% | ||
| GM | 57.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.99%
EPS 3Y13.19%
EPS 5Y
EPS Q2Q%
EPS Next Y22.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.88%
Revenue growth 3Y13.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y