RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
257.185 USD
+1.69 (+0.66%)
Overall RMD gets a fundamental rating of 7 out of 10. We evaluated RMD against 184 industry peers in the Health Care Equipment & Supplies industry. RMD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RMD is not valued too expensively and it also shows a decent growth rate. RMD also has an excellent dividend rating. With these ratings, RMD could be worth investigating further 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.
- In the past 5 years RMD has always been profitable.
- Each year in the past 5 years RMD had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 17.31%, RMD belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
- RMD has a Return On Equity of 23.49%. This is amongst the best in the industry. RMD outperforms 96.20% of its industry peers.
- 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 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 96.74% of its industry peers.
- In the last couple of years the Profit Margin of RMD has grown nicely.
- RMD has a Operating Margin of 33.49%. This is amongst the best in the industry. RMD outperforms 99.46% of its industry peers.
- In the last couple of years the Operating Margin of RMD has grown nicely.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMD is creating value.
- RMD has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RMD has more shares outstanding
- RMD has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 12.97 indicates that RMD is not in any danger for bankruptcy at the moment.
- RMD has a Altman-Z score of 12.97. 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.
- RMD has a better Debt to FCF ratio (0.38) than 91.30% of its industry peers.
- A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
- The Debt to Equity ratio of RMD (0.07) is better than 66.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.97 |
ROIC/WACC2.06
WACC9.96%
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 (2.89) which is comparable to the rest of the industry.
- RMD has a Quick Ratio of 2.13. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
- RMD's Quick ratio of 2.13 is in line compared to the rest of the industry. RMD outperforms 57.61% of its industry peers.
| 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.
- The Revenue has grown by 9.36% in the past year. This is quite good.
- 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
- 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 8.22% on average over the next years. This is quite good.
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.
- 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
- With a Price/Earnings ratio of 25.98, RMD can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
- RMD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 21.18, the valuation of RMD can be described as rather expensive.
- RMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMD is cheaper than 80.43% of the companies in the same industry.
- RMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 21.18 |
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 77.17% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 89.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.37 | ||
| EV/EBITDA | 18.73 |
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)1.73
PEG (5Y)1.74
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.
- RMD's earnings are growing more than its dividend. This makes the dividend growth 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 25.98 and the Price/Book (PB) ratio is 6.13.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.