RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
255.47 USD
+3.09 (+1.22%)
260.57 USD
+5.1 (+2%)
RMD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 184 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
- 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.
- In the past 5 years RMD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.31%, RMD belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
- With an excellent Return On Equity value of 23.49%, RMD belongs to the best of the industry, outperforming 96.20% of the companies in the same industry.
- The Return On Invested Capital of RMD (20.50%) is better than 97.83% 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 8.81%.
- 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
- With an excellent Profit Margin value of 27.35%, RMD belongs to the best of the industry, outperforming 96.74% 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 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.
- The Gross Margin of RMD (60.05%) is better than 60.33% of 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMD is creating value.
- RMD has less shares outstanding than it did 1 year ago.
- 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 12.85 indicates that RMD is not in any danger for bankruptcy at the moment.
- RMD has a Altman-Z score of 12.85. This is amongst the best in the industry. RMD outperforms 91.85% of its industry peers.
- The Debt to FCF ratio of RMD is 0.38, which is an excellent value as it means it would take RMD, only 0.38 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.38, RMD belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
- RMD has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- RMD has a better Debt to Equity ratio (0.07) than 66.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.85 |
ROIC/WACC2.05
WACC9.99%
2.3 Liquidity
- A Current Ratio of 2.89 indicates that RMD has no problem at all paying its short term obligations.
- RMD has a Current ratio of 2.89. This is comparable to the rest of the industry: RMD outperforms 56.52% of its industry peers.
- 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 57.61% 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.
- 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.
- Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 9.36% in the last year.
- 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.
- 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
- 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.
- 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
- Based on the Price/Earnings ratio of 25.81, the valuation of RMD can be described as expensive.
- Based on the Price/Earnings ratio, RMD is valued a bit cheaper than 79.35% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (27.25), we can say RMD is valued inline with the index average.
- With a Price/Forward Earnings ratio of 21.04, RMD is valued on the expensive side.
- 80.98% of the companies in the same industry are more expensive than RMD, based on the Price/Forward Earnings ratio.
- RMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 21.04 |
4.2 Price Multiples
- RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 78.26% of the companies in the same industry.
- RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 90.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.23 | ||
| EV/EBITDA | 18.49 |
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)1.72
PEG (5Y)1.73
EPS Next 2Y12.77%
EPS Next 3Y11.27%
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 92.39% of the companies listed in the same industry.
- With a Dividend Yield of 0.94, RMD pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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
- RMD pays out 22.31% 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.
DP22.31%
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 25.81 and the Price/Book (PB) ratio is 6.09.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.