RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
245.86 USD
-6.25 (-2.48%)
RMD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making RMD a very profitable company, without any liquidiy or solvency issues. 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.
RMD had a positive operating cash flow in the past year.
Each year in the past 5 years RMD has been profitable.
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 97.35% of the companies in the same industry.
The Return On Equity of RMD (23.49%) is better than 94.71% of its industry peers.
With an excellent Return On Invested Capital value of 20.50%, RMD belongs to the best of the industry, outperforming 97.88% 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 8.99%.
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
RMD's Profit Margin of 27.35% is amongst the best of the industry. RMD outperforms 94.71% 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 99.47% of the companies in the same industry.
RMD's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 60.05%, RMD perfoms like the industry average, outperforming 59.26% 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 | 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.
RMD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RMD has an improved debt to assets ratio.
2.2 Solvency
RMD has an Altman-Z score of 12.84. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.84, RMD belongs to the top of the industry, outperforming 91.01% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.38, RMD belongs to the top of the industry, outperforming 92.06% 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.
Looking at the Debt to Equity ratio, with a value of 0.07, RMD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.84 |
ROIC/WACC2.38
WACC8.62%
2.3 Liquidity
A Current Ratio of 2.89 indicates that RMD has no problem at all paying its short term obligations.
RMD's Current ratio of 2.89 is in line compared to the rest of the industry. RMD outperforms 58.73% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.13, RMD is in line with its industry, outperforming 56.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.42% over the past year.
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.
The Revenue has been growing by 11.72% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 8.22% on average over the next years. This is quite good.
EPS Next Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
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
With a Price/Earnings ratio of 24.83, RMD is valued on the expensive side.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. RMD is around the same levels.
RMD is valuated rather expensively with a Price/Forward Earnings ratio of 20.32.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than 79.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (34.57), we can say RMD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 20.32 |
4.2 Price Multiples
RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 78.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 84.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.54 | ||
| EV/EBITDA | 18.47 |
4.3 Compensation for Growth
RMD's 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)1.67
PEG (5Y)1.66
EPS Next 2Y12.56%
EPS Next 3Y11.21%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 1.89, RMD pays a better dividend. On top of this RMD pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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 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 2Y12.56%
EPS Next 3Y11.21%
NYSE:RMD (11/14/2025, 1:57:00 PM)
245.86
-6.25 (-2.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners64.76%
Inst Owner Change-0.71%
Ins Owners0.48%
Ins Owner Change0.79%
Market Cap35.88B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts75.2
Price Target301.14 (22.48%)
Short Float %6.18%
Short Ratio9.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.38%
Min EPS beat(2)1.02%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-0.57%
Max EPS beat(4)3.93%
EPS beat(8)6
Avg EPS beat(8)3.32%
EPS beat(12)9
Avg EPS beat(12)2.26%
EPS beat(16)10
Avg EPS beat(16)0.94%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.75%
Revenue beat(8)5
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)2%
PT rev (3m)2.82%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0.22%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 20.32 | ||
| P/S | 6.82 | ||
| P/FCF | 20.54 | ||
| P/OCF | 19.15 | ||
| P/B | 5.86 | ||
| P/tB | 13.64 | ||
| EV/EBITDA | 18.47 |
EPS(TTM)9.9
EY4.03%
EPS(NY)12.1
Fwd EY4.92%
FCF(TTM)11.97
FCFY4.87%
OCF(TTM)12.84
OCFY5.22%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.67
PEG (5Y)1.66
Graham Number96.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 23.49% | ||
| ROCE | 24.97% | ||
| ROIC | 20.5% | ||
| ROICexc | 25.5% | ||
| ROICexgc | 66.39% | ||
| OM | 33.49% | ||
| PM (TTM) | 27.35% | ||
| GM | 60.05% | ||
| FCFM | 33.23% |
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-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 65.89% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.93% | ||
| Profit Quality | 121.51% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | 12.84 |
F-Score7
WACC8.62%
ROIC/WACC2.38
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)19.42%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.91%
EPS Next Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.55%
EBIT Next 3Y13.86%
EBIT Next 5Y11.02%
FCF growth 1Y120.48%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y100.44%
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.
What is the valuation status for RMD stock?
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 24.83 and the Price/Book (PB) ratio is 5.86.
Is the dividend of RESMED INC sustainable?
The dividend rating of RESMED INC (RMD) is 7 / 10 and the dividend payout ratio is 22.31%.