RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
251.49 USD
+1.84 (+0.74%)
251.49 USD
0 (0%)
RMD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 189 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 correct valuation and a medium growth rate. 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.
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 97.35% of its industry peers.
RMD has a better Return On Equity (23.49%) than 95.24% of its industry peers.
RMD's Return On Invested Capital of 20.50% is amongst the best of the industry. RMD outperforms 97.88% 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 9.12%.
The last Return On Invested Capital (20.50%) for RMD is above the 3 year average (18.06%), which is a sign of increasing profitability.
| 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 better Profit Margin (27.35%) than 95.24% 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.
RMD's Operating Margin has improved in the last couple of years.
The Gross Margin of RMD (60.05%) is comparable to the rest of the industry.
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.
Compared to 1 year ago, RMD has less 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
An Altman-Z score of 12.74 indicates that RMD is not in any danger for bankruptcy at the moment.
The Altman-Z score of RMD (12.74) is better than 92.59% of its industry peers.
The Debt to FCF ratio of RMD is 0.38, which is an excellent value as it means it would take RMD, only 0.38 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.38, RMD belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.07, RMD is in the better half of the industry, outperforming 67.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.74 |
ROIC/WACC2.37
WACC8.65%
2.3 Liquidity
A Current Ratio of 2.89 indicates that RMD has no problem at all paying its short term obligations.
RMD has a Current ratio (2.89) which is in line with its industry peers.
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's Quick ratio of 2.13 is in line compared to the rest of the industry. RMD outperforms 56.61% 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.
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
Based on estimates for the next years, RMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.39% on average per year.
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 Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
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.
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 25.40, 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 76.72% of the companies in the same industry.
RMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
RMD is valuated rather expensively with a Price/Forward Earnings ratio of 20.78.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than 79.89% of the companies in the same industry.
RMD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.4 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
77.25% of the companies in the same industry are more expensive than RMD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 84.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.01 | ||
| EV/EBITDA | 18.29 |
4.3 Compensation for Growth
RMD's 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.
PEG (NY)1.71
PEG (5Y)1.7
EPS Next 2Y12.56%
EPS Next 3Y11.21%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.96%, which is pretty low.
RMD's Dividend Yield is rather good when compared to the industry average which is at 1.91. RMD pays more dividend than 93.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
22.31% 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.
DP22.31%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
251.49
+1.84 (+0.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners64.76%
Inst Owner Change-0.76%
Ins Owners0.48%
Ins Owner Change0.72%
Market Cap36.70B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts75.2
Price Target301.14 (19.74%)
Short Float %6.18%
Short Ratio9.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.38%
Min EPS beat(2)1.02%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-0.57%
Max EPS beat(4)3.93%
EPS beat(8)6
Avg EPS beat(8)3.32%
EPS beat(12)9
Avg EPS beat(12)2.26%
EPS beat(16)10
Avg EPS beat(16)0.94%
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)2%
PT rev (3m)10.37%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.4 | ||
| Fwd PE | 20.78 | ||
| P/S | 6.98 | ||
| P/FCF | 21.01 | ||
| P/OCF | 19.59 | ||
| P/B | 6 | ||
| P/tB | 13.95 | ||
| EV/EBITDA | 18.29 |
EPS(TTM)9.9
EY3.94%
EPS(NY)12.1
Fwd EY4.81%
FCF(TTM)11.97
FCFY4.76%
OCF(TTM)12.84
OCFY5.11%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.71
PEG (5Y)1.7
Graham Number96.66
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 | 33.23% |
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 | 250 | ||
| Cash Conversion | 95.93% | ||
| Profit Quality | 121.51% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | 12.74 |
F-Score7
WACC8.65%
ROIC/WACC2.37
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 Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.55%
EBIT Next 3Y13.86%
EBIT Next 5Y11.02%
FCF growth 1Y120.48%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y100.44%
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 25.4 and the Price/Book (PB) ratio is 6.
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%.