RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
273.19 USD
-0.1 (-0.04%)
273.19 USD
0 (0%)
RMD gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 191 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 correct valuation and a medium growth rate. 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
RMD had positive earnings in the past year.
RMD had a positive operating cash flow in the past year.
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's Return On Assets of 17.14% is amongst the best of the industry. RMD outperforms 97.38% of its industry peers.
RMD's Return On Equity of 23.47% is amongst the best of the industry. RMD outperforms 96.34% of its industry peers.
The Return On Invested Capital of RMD (19.35%) is better than 97.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMD is significantly above the industry average of 8.46%.
The last Return On Invested Capital (19.35%) for RMD is above the 3 year average (18.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 23.47% | ||
| ROIC | 19.35% |
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
Looking at the Profit Margin, with a value of 27.22%, RMD belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
RMD's Profit Margin has improved in the last couple of years.
The Operating Margin of RMD (32.76%) is better than 99.48% of its industry peers.
RMD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.33%, RMD is in line with its industry, outperforming 58.64% 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 | 32.76% | ||
| PM (TTM) | 27.22% | ||
| GM | 59.33% |
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.
The number of shares outstanding for RMD has been increased compared to 5 years ago.
RMD has a better debt/assets ratio than last year.
2.2 Solvency
RMD has an Altman-Z score of 13.59. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.59, RMD belongs to the top of the industry, outperforming 93.72% of the companies in the same industry.
The Debt to FCF ratio of RMD is 0.40, which is an excellent value as it means it would take RMD, only 0.40 years of fcf income to pay off all of its debts.
RMD's Debt to FCF ratio of 0.40 is amongst the best of the industry. RMD outperforms 93.72% of its industry peers.
RMD has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.11, RMD is doing good in the industry, outperforming 62.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 13.59 |
ROIC/WACC2.23
WACC8.69%
2.3 Liquidity
A Current Ratio of 3.44 indicates that RMD has no problem at all paying its short term obligations.
The Current ratio of RMD (3.44) is better than 63.87% of its industry peers.
A Quick Ratio of 2.53 indicates that RMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.53, RMD is in the better half of the industry, outperforming 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
RMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.54%, which is quite impressive.
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.
RMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.84%.
The Revenue has been growing by 11.72% on average over the past years. This is quite good.
EPS 1Y (TTM)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.2%
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.
The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
EPS Next Y14.94%
EPS Next 2Y12.26%
EPS Next 3Y10.99%
EPS Next 5Y10.39%
Revenue Next Year9.18%
Revenue Next 2Y8.23%
Revenue Next 3Y7.72%
Revenue Next 5Y8.18%
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
The Price/Earnings ratio is 28.61, which means the current valuation is very expensive for RMD.
Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 74.87% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. RMD is around the same levels.
A Price/Forward Earnings ratio of 24.89 indicates a rather expensive valuation of RMD.
74.87% of the companies in the same industry are more expensive than RMD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (22.86), we can say RMD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than the industry average as 74.87% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 83.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.23 | ||
| EV/EBITDA | 20.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RMD does not grow enough to justify the current Price/Earnings ratio.
RMD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)1.91
EPS Next 2Y12.26%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, RMD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.73, RMD pays a better dividend. On top of this RMD pays more dividend than 92.67% of the companies listed in the same industry.
With a Dividend Yield of 0.88, RMD pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.33%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
22.19% 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.
DP22.19%
EPS Next 2Y12.26%
EPS Next 3Y10.99%
273.19
-0.1 (-0.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners65.06%
Inst Owner Change-2.5%
Ins Owners0.65%
Ins Owner Change0.58%
Market Cap40.00B
Analysts75.65
Price Target295.22 (8.06%)
Short Float %5.85%
Short Ratio8.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.19%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.59%
Min EPS beat(2)-0.57%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)2.99%
Min EPS beat(4)-0.57%
Max EPS beat(4)6.87%
EPS beat(8)6
Avg EPS beat(8)3.24%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)10
Avg EPS beat(16)1.5%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)0.75%
Revenue beat(4)3
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.74%
Revenue beat(16)8
Avg Revenue beat(16)0.14%
PT rev (1m)0.8%
PT rev (3m)11.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)0%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 24.89 | ||
| P/S | 7.77 | ||
| P/FCF | 24.23 | ||
| P/OCF | 22.84 | ||
| P/B | 6.7 | ||
| P/tB | 16.28 | ||
| EV/EBITDA | 20.53 |
EPS(TTM)9.55
EY3.5%
EPS(NY)10.98
Fwd EY4.02%
FCF(TTM)11.28
FCFY4.13%
OCF(TTM)11.96
OCFY4.38%
SpS35.15
BVpS40.76
TBVpS16.78
PEG (NY)1.91
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 23.47% | ||
| ROCE | 23.56% | ||
| ROIC | 19.35% | ||
| ROICexc | 23.28% | ||
| ROICexgc | 56.87% | ||
| OM | 32.76% | ||
| PM (TTM) | 27.22% | ||
| GM | 59.33% | ||
| FCFM | 32.08% |
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%
ROICexcg growth 3Y8.61%
ROICexcg 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-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 42.68% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 59.33 | ||
| Cash Conversion | 91.15% | ||
| Profit Quality | 117.86% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 13.59 |
F-Score8
WACC8.69%
ROIC/WACC2.23
Cap/Depr(3y)54.54%
Cap/Depr(5y)63.73%
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)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
EPS Next Y14.94%
EPS Next 2Y12.26%
EPS Next 3Y10.99%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.2%
Revenue Next Year9.18%
Revenue Next 2Y8.23%
Revenue Next 3Y7.72%
Revenue Next 5Y8.18%
EBIT growth 1Y21.8%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.96%
EBIT Next 3Y13.37%
EBIT Next 5Y11.02%
FCF growth 1Y28.34%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y25%
OCF growth 3Y70.86%
OCF growth 5Y16.9%