RESMED INC (RMD) Fundamental Analysis & Valuation
NYSE:RMD • US7611521078
Current stock price
219.85 USD
+0.34 (+0.15%)
At close:
219.85 USD
0 (0%)
After Hours:
This RMD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RMD Profitability Analysis
1.1 Basic Checks
- RMD had positive earnings in the past year.
- In the past year RMD had a positive cash flow from operations.
- Each year in the past 5 years RMD has been profitable.
- RMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.47%, RMD belongs to the top of the industry, outperforming 96.26% of the companies in the same industry.
- The Return On Equity of RMD (23.51%) is better than 95.19% of its industry peers.
- RMD's Return On Invested Capital of 20.84% is amongst the best of the industry. RMD outperforms 97.86% 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 9.12%.
- The last Return On Invested Capital (20.84%) for RMD is above the 3 year average (18.06%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 27.53%, RMD belongs to the top of the industry, outperforming 97.33% of the companies in the same industry.
- 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 99.47% of the companies in the same industry.
- In the last couple of years the Operating Margin of RMD has grown nicely.
- The Gross Margin of RMD (60.85%) is better than 60.43% of its industry peers.
- RMD's Gross Margin has been stable in the last couple of years.
| 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. RMD Health Analysis
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.
- RMD has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RMD has more shares outstanding
- Compared to 1 year ago, RMD has an improved debt to assets ratio.
2.2 Solvency
- RMD has an Altman-Z score of 11.61. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 11.61, RMD belongs to the best of the industry, outperforming 89.30% of the companies in the same industry.
- The Debt to FCF ratio of RMD is 0.37, which is an excellent value as it means it would take RMD, only 0.37 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.37, RMD belongs to the best of the industry, outperforming 91.44% 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.
- The Debt to Equity ratio of RMD (0.06) is better than 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 11.61 |
ROIC/WACC2.36
WACC8.83%
2.3 Liquidity
- A Current Ratio of 3.06 indicates that RMD has no problem at all paying its short term obligations.
- RMD has a Current ratio (3.06) which is comparable to the rest of the industry.
- RMD has a Quick Ratio of 2.32. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
- RMD's Quick ratio of 2.32 is in line compared to the rest of the industry. RMD outperforms 56.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.32 |
3. RMD Growth Analysis
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.
- 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 9.57%.
- 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
- Based on estimates for the next years, RMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.77% on average per year.
- The Revenue is expected to grow by 8.40% on average over the next years. This is quite good.
EPS Next Y16.35%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
EPS Next 5Y10.77%
Revenue Next Year9.99%
Revenue Next 2Y8.69%
Revenue Next 3Y8.02%
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. RMD Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.39, the valuation of RMD can be described as rather expensive.
- Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 79.14% of the companies are valued more expensively.
- RMD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
- With a Price/Forward Earnings ratio of 17.91, RMD is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, RMD is valued cheaply inside the industry as 83.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.29, RMD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 17.91 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 78.07% of the companies listed in the same industry.
- 91.98% 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 | 18.03 | ||
| EV/EBITDA | 15.28 |
4.3 Compensation for Growth
- RMD's 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)1.31
PEG (5Y)1.43
EPS Next 2Y13.39%
EPS Next 3Y11.65%
5. RMD Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.09%, RMD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.25, RMD pays a better dividend. On top of this RMD pays more dividend than 93.58% of the companies listed in the same industry.
- RMD's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
- On average, the dividend of RMD grows each year by 6.33%, which is quite nice.
- 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 Years13
Div Non Decr Years13
5.3 Sustainability
- RMD pays out 22.25% of its income as dividend. This is a sustainable payout ratio.
- RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.25%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
RMD Fundamentals: All Metrics, Ratios and Statistics
219.85
+0.34 (+0.15%)
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)04-30 2026-04-30/amc
Inst Owners68.64%
Inst Owner Change0.3%
Ins Owners0.49%
Ins Owner Change-0.41%
Market Cap32.03B
Revenue(TTM)5.40B
Net Income(TTM)1.49B
Analysts73.6
Price Target302.49 (37.59%)
Short Float %8.2%
Short Ratio10.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.25%
Div Incr Years13
Div Non Decr Years13
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)-0.31%
PT rev (3m)1.36%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 17.91 | ||
| P/S | 5.93 | ||
| P/FCF | 18.03 | ||
| P/OCF | 16.73 | ||
| P/B | 5.07 | ||
| P/tB | 11.25 | ||
| EV/EBITDA | 15.28 |
EPS(TTM)10.28
EY4.68%
EPS(NY)12.28
Fwd EY5.58%
FCF(TTM)12.2
FCFY5.55%
OCF(TTM)13.14
OCFY5.98%
SpS37.05
BVpS43.39
TBVpS19.54
PEG (NY)1.31
PEG (5Y)1.43
Graham Number100.179 (-54.43%)
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 | 11.61 |
F-Score6
WACC8.83%
ROIC/WACC2.36
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 Y16.35%
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 Year9.99%
Revenue Next 2Y8.69%
Revenue Next 3Y8.02%
Revenue Next 5Y8.4%
EBIT growth 1Y18%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year26.85%
EBIT Next 3Y14.35%
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 Fundamental Analysis FAQ
What is the ChartMill fundamental rating of RESMED INC (RMD) stock?
ChartMill assigns a fundamental rating of 8 / 10 to RMD.
What is the valuation status of RESMED INC (RMD) stock?
ChartMill assigns a valuation rating of 6 / 10 to RESMED INC (RMD). This can be considered as Fairly Valued.
How profitable is RESMED INC (RMD) stock?
RESMED INC (RMD) has a profitability rating of 9 / 10.
What is the expected EPS growth for RESMED INC (RMD) stock?
The Earnings per Share (EPS) of RESMED INC (RMD) is expected to grow by 16.35% in the next year.
Is the dividend of RESMED INC sustainable?
The dividend rating of RESMED INC (RMD) is 7 / 10 and the dividend payout ratio is 22.25%.