RESMED INC (RMD) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:RMD • US7611521078
258.31 USD
+0.7 (+0.27%)
At close: Jan 30, 2026
258.31 USD
0 (0%)
After Hours: 1/30/2026, 8:17:10 PM
Taking everything into account, RMD scores 7 out of 10 in our fundamental rating. RMD was compared to 186 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 is not valued too expensively and it also shows a decent growth rate. RMD also has an excellent dividend rating. This makes RMD very considerable 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.
- In the past 5 years RMD has always been profitable.
- In the past 5 years RMD always reported a positive cash flow from operatings.
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's Return On Invested Capital of 20.50% is amongst the best of the industry. RMD outperforms 97.84% 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 8.81%.
- 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
- The Profit Margin of RMD (27.35%) is better than 96.76% of its industry peers.
- RMD's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 33.49%, RMD belongs to the top of the industry, outperforming 99.46% of the companies in the same industry.
- RMD's Operating Margin has improved in the last couple of years.
- RMD has a Gross Margin of 60.05%. This is in the better half of the industry: RMD outperforms 60.54% 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
- 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.
- The debt/assets ratio for RMD has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 13.09 indicates that RMD is not in any danger for bankruptcy at the moment.
- RMD has a Altman-Z score of 13.09. This is amongst the best in the industry. RMD outperforms 92.43% 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 better Debt to FCF ratio (0.38) than 91.35% 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.
- With a decent Debt to Equity ratio value of 0.07, RMD is doing good in the industry, outperforming 67.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 13.09 |
ROIC/WACC2.03
WACC10.08%
2.3 Liquidity
- RMD has a Current Ratio of 2.89. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
- RMD has a Current ratio (2.89) which 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.
- With a Quick ratio value of 2.13, RMD perfoms like the industry average, 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 16.29%, 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.
- Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 9.84% in the last year.
- The Revenue has been growing by 11.72% on average over the past years. This is quite good.
EPS 1Y (TTM)16.29%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.64%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%
3.2 Future
- The Earnings Per Share is expected to grow by 10.39% on average over the next years. This is quite good.
- Based on estimates for the next years, RMD will show a quite strong growth in Revenue. The Revenue will grow by 8.22% on average per year.
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
- 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
- A Price/Earnings ratio of 25.13 indicates a quite expensive valuation of RMD.
- Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 79.46% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (28.32), we can say RMD is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 21.27, the valuation of RMD can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 80.00% of the companies listed in the same industry.
- RMD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than the industry average as 77.30% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, RMD is valued cheaper than 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 18.94 |
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)1.68
PEG (5Y)1.68
EPS Next 2Y12.77%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
- RMD has a yearly dividend return of 0.93%, which is pretty low.
- RMD's Dividend Yield is rather good when compared to the industry average which is at 0.21. RMD pays more dividend than 91.89% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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.
- The dividend of RMD is growing, but earnings are growing more, so the dividend growth is 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 25.13 and the Price/Book (PB) ratio is 6.16.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.