RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
248.21 USD
-0.98 (-0.39%)
248.21 USD
0 (0%)
Overall RMD gets a fundamental rating of 7 out of 10. We evaluated RMD against 185 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making RMD a very profitable company, without any liquidiy or solvency issues. RMD has a correct valuation and a medium growth rate. Finally RMD also has an excellent dividend rating. These ratings would make RMD suitable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
RMD had positive earnings in the past year.
In the past year RMD had a positive cash flow from operations.
RMD had positive earnings in each of the past 5 years.
RMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RMD has a Return On Assets of 17.31%. This is amongst the best in the industry. RMD outperforms 97.84% of its industry peers.
Looking at the Return On Equity, with a value of 23.49%, RMD belongs to the top of the industry, outperforming 96.22% of the companies in the same industry.
RMD has a better Return On Invested Capital (20.50%) than 97.84% 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 8.84%.
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
The Profit Margin of RMD (27.35%) is better than 96.22% of its industry peers.
RMD's Profit Margin has improved in the last couple of years.
The Operating Margin of RMD (33.49%) is better than 99.46% of its industry peers.
RMD's Operating Margin has improved in the last couple of years.
RMD has a Gross Margin (60.05%) which is in line with 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
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
The number of shares outstanding for RMD has been increased compared to 5 years ago.
The debt/assets ratio for RMD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.68 indicates that RMD is not in any danger for bankruptcy at the moment.
RMD has a Altman-Z score of 12.68. This is amongst the best in the industry. RMD outperforms 90.81% 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 91.89% 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's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. RMD outperforms 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.68 |
ROIC/WACC2.1
WACC9.75%
2.3 Liquidity
A Current Ratio of 2.89 indicates that RMD has no problem at all paying its short term obligations.
The Current ratio of RMD (2.89) is comparable to the rest of the industry.
A Quick Ratio of 2.13 indicates that RMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.13, RMD is in line with its industry, outperforming 57.30% of the companies in the same industry.
| 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.
RMD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.94% yearly.
RMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.36%.
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.
The Revenue is expected to grow by 8.22% on average over the next years. This is quite good.
EPS Next Y15%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
EPS Next 5Y10.39%
Revenue Next Year9.24%
Revenue Next 2Y8.29%
Revenue Next 3Y7.69%
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.
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
The Price/Earnings ratio is 25.07, which means the current valuation is very expensive for RMD.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than 78.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. RMD is around the same levels.
The Price/Forward Earnings ratio is 20.44, which indicates a rather expensive current valuation of RMD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 82.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, RMD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 20.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 78.92% of the companies in the same industry.
90.27% 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 | 20.63 | ||
| EV/EBITDA | 18.18 |
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)1.67
PEG (5Y)1.68
EPS Next 2Y12.77%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 1.00%, 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 92.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of RMD is nicely growing with an annual growth rate of 6.33%!
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)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 2Y12.77%
EPS Next 3Y11.27%
248.21
-0.98 (-0.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners65.65%
Inst Owner Change0%
Ins Owners0.49%
Ins Owner Change2.05%
Market Cap36.23B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts76
Price Target298.42 (20.23%)
Short Float %7.28%
Short Ratio9.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)-0.34%
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)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 20.44 | ||
| P/S | 6.89 | ||
| P/FCF | 20.63 | ||
| P/OCF | 19.24 | ||
| P/B | 5.92 | ||
| P/tB | 13.78 | ||
| EV/EBITDA | 18.18 |
EPS(TTM)9.9
EY3.99%
EPS(NY)12.14
Fwd EY4.89%
FCF(TTM)12.03
FCFY4.85%
OCF(TTM)12.9
OCFY5.2%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.67
PEG (5Y)1.68
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 | 12.68 |
F-Score7
WACC9.75%
ROIC/WACC2.1
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 2Y8.29%
Revenue Next 3Y7.69%
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 25.07 and the Price/Book (PB) ratio is 5.92.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.