RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
257.61 USD
-0.11 (-0.04%)
264 USD
+6.39 (+2.48%)
We assign a fundamental rating of 7 out of 10 to RMD. RMD was compared to 184 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 decent growth rate and is not valued too expensively. Finally RMD also has an excellent dividend rating. These ratings could make RMD a good candidate 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.
- 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
- Looking at the Return On Assets, with a value of 17.31%, RMD belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
- RMD has a better Return On Equity (23.49%) than 96.20% of its industry peers.
- RMD's Return On Invested Capital of 20.50% is amongst the best of the industry. RMD outperforms 97.83% of its industry peers.
- RMD had an Average Return On Invested Capital over the past 3 years of 18.06%. This is significantly above the industry average of 8.81%.
- 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 96.74% 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.
- RMD's Operating Margin has improved in the last couple of years.
- RMD has a better Gross Margin (60.05%) than 60.33% 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
- RMD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
- RMD has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 13.06 indicates that RMD is not in any danger for bankruptcy at the moment.
- The Altman-Z score of RMD (13.06) is better than 91.85% 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's Debt to FCF ratio of 0.38 is amongst the best of the industry. RMD outperforms 91.30% 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.
- Looking at the Debt to Equity ratio, with a value of 0.07, RMD is in the better half of the industry, outperforming 66.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 13.06 |
ROIC/WACC2.05
WACC10.02%
2.3 Liquidity
- A Current Ratio of 2.89 indicates that RMD has no problem at all paying its short term obligations.
- RMD's Current ratio of 2.89 is in line compared to the rest of the industry. RMD outperforms 56.52% of its industry peers.
- A Quick Ratio of 2.13 indicates that RMD has no problem at all paying its short term obligations.
- The Quick ratio of RMD (2.13) is comparable to the rest of the industry.
| 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.
- RMD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.94% yearly.
- Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 9.36% in the last year.
- 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)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.
- RMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.22% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.02, the valuation of RMD can be described as expensive.
- Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 78.80% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (28.60), we can say RMD is valued inline with the index average.
- With a Price/Forward Earnings ratio of 21.21, RMD is valued on the expensive side.
- 80.43% of the companies in the same industry are more expensive than RMD, based on the Price/Forward Earnings ratio.
- RMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 21.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 77.17% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 89.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.41 | ||
| EV/EBITDA | 18.89 |
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.
PEG (NY)1.74
PEG (5Y)1.74
EPS Next 2Y12.77%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
- RMD has a yearly dividend return of 0.94%, which is pretty low.
- RMD's Dividend Yield is rather good when compared to the industry average which is at 0.20. RMD pays more dividend than 92.39% of the companies in the same industry.
- With a Dividend Yield of 0.94, RMD pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
- On average, the dividend of RMD grows each year by 6.33%, which is quite nice.
- 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%
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 26.02 and the Price/Book (PB) ratio is 6.14.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.