RESMED INC (RMD) Stock Fundamental Analysis
NYSE:RMD - New York Stock Exchange, Inc. - US7611521078 - Common Stock - Currency: USD
Overall RMD gets a fundamental rating of 7 out of 10. We evaluated RMD against 187 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 has a decent growth rate and is not valued too expensively. With these ratings, RMD could be worth investigating further for 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.
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
RMD has a Return On Assets of 17.36%. This is amongst the best in the industry. RMD outperforms 97.33% of its industry peers.
With an excellent Return On Equity value of 23.68%, RMD belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
RMD has a better Return On Invested Capital (19.73%) than 98.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMD is significantly above the industry average of 7.89%.
The 3 year average ROIC (17.61%) for RMD is below the current ROIC(19.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.36% | ||
| ROE | 23.68% | ||
| ROIC | 19.73% |
ROA(3y)14.48%
ROA(5y)13.41%
ROE(3y)21.97%
ROE(5y)21.45%
ROIC(3y)17.61%
ROIC(5y)17.76%
1.3 Margins
With an excellent Profit Margin value of 26.15%, RMD belongs to the best of the industry, outperforming 95.72% of the companies in the same industry.
In the last couple of years the Profit Margin of RMD has grown nicely.
The Operating Margin of RMD (32.10%) is better than 99.47% of its industry peers.
RMD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.76%, RMD is in line with its industry, outperforming 57.22% of the companies in the same industry.
RMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.1% | ||
| PM (TTM) | 26.15% | ||
| GM | 58.76% |
OM growth 3Y0.96%
OM growth 5Y3.9%
PM growth 3Y13.65%
PM growth 5Y7.02%
GM growth 3Y-0.59%
GM growth 5Y-0.23%
2. Health
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 about the same amout of shares outstanding than it did 1 year ago.
RMD has more shares outstanding than it did 5 years ago.
RMD has a better debt/assets ratio than last year.
2.2 Solvency
RMD has an Altman-Z score of 14.03. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD has a better Altman-Z score (14.03) than 91.98% of its industry peers.
RMD has a debt to FCF ratio of 0.43. This is a very positive value and a sign of high solvency as it would only need 0.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.43, RMD belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
RMD has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RMD (0.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 14.03 |
ROIC/WACC2.23
WACC8.84%
2.3 Liquidity
A Current Ratio of 3.41 indicates that RMD has no problem at all paying its short term obligations.
RMD has a better Current ratio (3.41) than 60.96% of its industry peers.
A Quick Ratio of 2.49 indicates that RMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.49, RMD is in line with its industry, outperforming 56.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.24% 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 16.19% on average per year.
RMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.54%.
The Revenue has been growing by 12.44% on average over the past years. This is quite good.
EPS 1Y (TTM)25.24%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%11.27%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%7.92%
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 12.55% on average per year.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y24%
EPS Next 2Y16.99%
EPS Next 3Y14.43%
EPS Next 5Y12.55%
Revenue Next Year9.42%
Revenue Next 2Y8.59%
Revenue Next 3Y8.08%
Revenue Next 5Y8.51%
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 28.02 indicates a quite expensive valuation of RMD.
77.01% of the companies in the same industry are more expensive than RMD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, RMD is valued at the same level.
With a Price/Forward Earnings ratio of 24.05, RMD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than 75.40% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.02 | ||
| Fwd PE | 24.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 74.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 86.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.92 | ||
| EV/EBITDA | 20.56 |
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.
A more expensive valuation may be justified as RMD's earnings are expected to grow with 14.43% in the coming years.
PEG (NY)1.17
PEG (5Y)1.73
EPS Next 2Y16.99%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, RMD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, RMD pays a better dividend. On top of this RMD pays more dividend than 91.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of RMD has a limited annual growth rate of 5.38%.
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)5.38%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
RMD pays out 23.14% 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.
DP23.14%
EPS Next 2Y16.99%
EPS Next 3Y14.43%
254.4
-3.67 (-1.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners65.15%
Inst Owner Change0.33%
Ins Owners0.66%
Ins Owner Change-1.64%
Market Cap37.30B
Analysts74.78
Price Target265.77 (4.47%)
Short Float %6.82%
Short Ratio10.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1.92
Dividend Growth(5Y)5.38%
DP23.14%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.68%
Min EPS beat(2)-0.57%
Max EPS beat(2)3.93%
EPS beat(4)2
Avg EPS beat(4)2.47%
Min EPS beat(4)-0.57%
Max EPS beat(4)6.87%
EPS beat(8)5
Avg EPS beat(8)2.23%
EPS beat(12)8
Avg EPS beat(12)2.04%
EPS beat(16)10
Avg EPS beat(16)1.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)2.73%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)6
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.65%
PT rev (1m)0%
PT rev (3m)-2.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.02 | ||
| Fwd PE | 24.05 | ||
| P/S | 7.43 | ||
| P/FCF | 23.92 | ||
| P/OCF | 22.57 | ||
| P/B | 6.73 | ||
| P/tB | 16.45 | ||
| EV/EBITDA | 20.56 |
EPS(TTM)9.08
EY3.57%
EPS(NY)10.58
Fwd EY4.16%
FCF(TTM)10.64
FCFY4.18%
OCF(TTM)11.27
OCFY4.43%
SpS34.25
BVpS37.82
TBVpS15.46
PEG (NY)1.17
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.36% | ||
| ROE | 23.68% | ||
| ROCE | 24.33% | ||
| ROIC | 19.73% | ||
| ROICexc | 22.96% | ||
| ROICexgc | 54.14% | ||
| OM | 32.1% | ||
| PM (TTM) | 26.15% | ||
| GM | 58.76% | ||
| FCFM | 31.06% |
ROA(3y)14.48%
ROA(5y)13.41%
ROE(3y)21.97%
ROE(5y)21.45%
ROIC(3y)17.61%
ROIC(5y)17.76%
ROICexc(3y)18.48%
ROICexc(5y)19.04%
ROICexgc(3y)42.98%
ROICexgc(5y)49.28%
ROCE(3y)21.71%
ROCE(5y)21.9%
ROICexcg growth 3Y-8.9%
ROICexcg growth 5Y-1.39%
ROICexc growth 3Y-2.46%
ROICexc growth 5Y5.3%
OM growth 3Y0.96%
OM growth 5Y3.9%
PM growth 3Y13.65%
PM growth 5Y7.02%
GM growth 3Y-0.59%
GM growth 5Y-0.23%
F-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 43.09% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 58.78 | ||
| Cash Conversion | 90.41% | ||
| Profit Quality | 118.77% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.49 | ||
| Altman-Z | 14.03 |
F-Score8
WACC8.84%
ROIC/WACC2.23
Cap/Depr(3y)67.15%
Cap/Depr(5y)68.87%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.44%
Profit Quality(3y)71.12%
Profit Quality(5y)91.2%
High Growth Momentum
Growth
EPS 1Y (TTM)25.24%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%11.27%
EPS Next Y24%
EPS Next 2Y16.99%
EPS Next 3Y14.43%
EPS Next 5Y12.55%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%7.92%
Revenue Next Year9.42%
Revenue Next 2Y8.59%
Revenue Next 3Y8.08%
Revenue Next 5Y8.51%
EBIT growth 1Y25.05%
EBIT growth 3Y14.69%
EBIT growth 5Y16.83%
EBIT Next Year31.4%
EBIT Next 3Y15.73%
EBIT Next 5Y12.52%
FCF growth 1Y282.58%
FCF growth 3Y27.55%
FCF growth 5Y27.5%
OCF growth 1Y208.76%
OCF growth 3Y23.9%
OCF growth 5Y25%