RESMED INC (RMD) Stock Fundamental Analysis
NYSE:RMD • US7611521078
260.79 USD
+1.67 (+0.64%)
At close: Feb 23, 2026
260.79 USD
0 (0%)
After Hours: 2/23/2026, 5:05:00 PM
We assign a fundamental rating of 7 out of 10 to RMD. RMD was compared to 185 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 decent growth rate and is not valued too expensively. 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
- In the past year RMD was profitable.
- RMD had a positive operating cash flow in the past year.
- 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's Return On Assets of 17.47% is amongst the best of the industry. RMD outperforms 98.92% of its industry peers.
- Looking at the Return On Equity, with a value of 23.51%, RMD belongs to the top of the industry, outperforming 96.22% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 20.84%, RMD belongs to the top of the industry, outperforming 97.84% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for RMD is significantly above the industry average of 8.75%.
- The 3 year average ROIC (18.06%) for RMD is below the current ROIC(20.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.47% | ||
| ROE | 23.51% | ||
| ROIC | 20.84% |
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 (27.53%) is better than 97.30% of its industry peers.
- In the last couple of years the Profit Margin of RMD has grown nicely.
- Looking at the Operating Margin, with a value of 34.11%, 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.
- Looking at the Gross Margin, with a value of 60.85%, RMD is in the better half of the industry, outperforming 63.24% 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 | 34.11% | ||
| PM (TTM) | 27.53% | ||
| GM | 60.85% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- RMD has a better debt/assets ratio than last year.
2.2 Solvency
- RMD has an Altman-Z score of 13.18. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 13.18, RMD belongs to the best of the industry, outperforming 93.51% of the companies in the same industry.
- RMD has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.37, RMD belongs to the best of the industry, outperforming 91.35% of the companies in the same industry.
- RMD has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- RMD's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. RMD outperforms 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 13.18 |
ROIC/WACC2.11
WACC9.88%
2.3 Liquidity
- A Current Ratio of 3.06 indicates that RMD has no problem at all paying its short term obligations.
- The Current ratio of RMD (3.06) is comparable to the rest of the industry.
- A Quick Ratio of 2.32 indicates that RMD has no problem at all paying its short term obligations.
- RMD's Quick ratio of 2.32 is in line compared to the rest of the industry. RMD outperforms 59.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.32 |
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.
- RMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.57%.
- 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)9.57%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%
3.2 Future
- RMD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.77% yearly.
- Based on estimates for the next years, RMD will show a quite strong growth in Revenue. The Revenue will grow by 8.40% on average per year.
EPS Next Y16.4%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
EPS Next 5Y10.77%
Revenue Next Year10.03%
Revenue Next 2Y8.69%
Revenue Next 3Y7.93%
Revenue Next 5Y8.4%
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.
- 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
- A Price/Earnings ratio of 25.37 indicates a quite expensive valuation of RMD.
- 77.30% of the companies in the same industry are more expensive than RMD, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (26.99), we can say RMD is valued inline with the index average.
- RMD is valuated rather expensively with a Price/Forward Earnings ratio of 21.24.
- 79.46% of the companies in the same industry are more expensive than RMD, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.02, RMD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.37 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
- 76.76% of the companies in the same industry are more expensive than RMD, based on the Enterprise Value to EBITDA ratio.
- RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.38 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
- The 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)1.55
PEG (5Y)1.7
EPS Next 2Y13.39%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
- RMD has a yearly dividend return of 0.94%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.20, RMD pays a better dividend. On top of this RMD pays more dividend than 92.43% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, RMD's dividend is way lower than the S&P500 average.
| 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 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
- RMD pays out 22.25% of its income as dividend. This is a sustainable payout ratio.
- The dividend of RMD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.25%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
260.79
+1.67 (+0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-21 2026-04-21
Inst Owners65.65%
Inst Owner Change4.88%
Ins Owners0.49%
Ins Owner Change-0.12%
Market Cap37.99B
Revenue(TTM)5.40B
Net Income(TTM)1.49B
Analysts74.4
Price Target303.52 (16.38%)
Short Float %7.68%
Short Ratio10.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.25%
Div Incr Years12
Div Non Decr Years12
Ex-Date02-12 2026-02-12 (0.6)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-1.16%
Max EPS beat(2)2.15%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.15%
EPS beat(8)5
Avg EPS beat(8)2.85%
EPS beat(12)8
Avg EPS beat(12)2.12%
EPS beat(16)10
Avg EPS beat(16)1.2%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.91%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.91%
Revenue beat(8)5
Avg Revenue beat(8)0.55%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.24%
PT rev (1m)1.71%
PT rev (3m)1.36%
EPS NQ rev (1m)1.19%
EPS NQ rev (3m)1.39%
EPS NY rev (1m)1.23%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.37 | ||
| Fwd PE | 21.24 | ||
| P/S | 7.04 | ||
| P/FCF | 21.38 | ||
| P/OCF | 19.84 | ||
| P/B | 6.01 | ||
| P/tB | 13.35 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)10.28
EY3.94%
EPS(NY)12.28
Fwd EY4.71%
FCF(TTM)12.2
FCFY4.68%
OCF(TTM)13.14
OCFY5.04%
SpS37.05
BVpS43.39
TBVpS19.54
PEG (NY)1.55
PEG (5Y)1.7
Graham Number100.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.47% | ||
| ROE | 23.51% | ||
| ROCE | 25.38% | ||
| ROIC | 20.84% | ||
| ROICexc | 25.9% | ||
| ROICexgc | 63.96% | ||
| OM | 34.11% | ||
| PM (TTM) | 27.53% | ||
| GM | 60.85% | ||
| FCFM | 32.91% |
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-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.37 | ||
| Debt/EBITDA | 0.2 | ||
| Cap/Depr | 67.31% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 53.22 | ||
| Cash Conversion | 93.57% | ||
| Profit Quality | 119.57% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 13.18 |
F-Score6
WACC9.88%
ROIC/WACC2.11
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)16.29%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.64%
EPS Next Y16.4%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
EPS Next 5Y10.77%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%
Revenue Next Year10.03%
Revenue Next 2Y8.69%
Revenue Next 3Y7.93%
Revenue Next 5Y8.4%
EBIT growth 1Y18%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year27.08%
EBIT Next 3Y13.99%
EBIT Next 5Y11.01%
FCF growth 1Y88.25%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y77.41%
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 25.37 and the Price/Book (PB) ratio is 6.01.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.