RESMED INC (RMD) Stock Fundamental Analysis
NYSE:RMD - New York Stock Exchange, Inc. - US7611521078 - Common Stock - Currency: USD
RMD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 190 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 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.
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 17.49%. This is amongst the best in the industry. RMD outperforms 97.37% of its industry peers.
The Return On Equity of RMD (23.77%) is better than 95.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.12%, RMD belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RMD is significantly above the industry average of 7.68%.
The last Return On Invested Capital (20.12%) for RMD is above the 3 year average (17.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 23.77% | ||
| ROIC | 20.12% |
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
RMD has a Profit Margin of 25.35%. This is amongst the best in the industry. RMD outperforms 95.26% of its industry peers.
In the last couple of years the Profit Margin of RMD has grown nicely.
RMD's Operating Margin of 31.67% is amongst the best of the industry. RMD outperforms 98.95% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
RMD has a Gross Margin of 58.39%. This is comparable to the rest of the industry: RMD outperforms 54.21% 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 | 31.67% | ||
| PM (TTM) | 25.35% | ||
| GM | 58.39% |
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.
Compared to 1 year ago, RMD has about the same amount of shares outstanding.
The number of shares outstanding for RMD has been increased compared to 5 years ago.
RMD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.76 indicates that RMD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.76, RMD belongs to the best of the industry, outperforming 93.68% of the companies in the same industry.
The Debt to FCF ratio of RMD is 0.49, which is an excellent value as it means it would take RMD, only 0.49 years of fcf income to pay off all of its debts.
RMD's Debt to FCF ratio of 0.49 is amongst the best of the industry. RMD outperforms 93.68% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that RMD is not too dependend on debt financing.
RMD has a Debt to Equity ratio (0.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 12.76 |
ROIC/WACC2.27
WACC8.85%
2.3 Liquidity
RMD has a Current Ratio of 3.33. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD has a Current ratio of 3.33. This is comparable to the rest of the industry: RMD outperforms 60.00% of its industry peers.
RMD has a Quick Ratio of 2.29. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD's Quick ratio of 2.29 is in line compared to the rest of the industry. RMD outperforms 56.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
RMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.00%, which is quite impressive.
The Earnings Per Share has been growing by 16.19% on average over the past years. This is quite good.
RMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.38%.
The Revenue has been growing by 12.44% on average over the past years. This is quite good.
EPS 1Y (TTM)30%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%29.26%
Revenue 1Y (TTM)9.38%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%10.26%
3.2 Future
RMD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.24% yearly.
The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y23.4%
EPS Next 2Y16.61%
EPS Next 3Y13.9%
EPS Next 5Y12.24%
Revenue Next Year9.14%
Revenue Next 2Y8.26%
Revenue Next 3Y7.89%
Revenue Next 5Y8.44%
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
RMD is valuated rather expensively with a Price/Earnings ratio of 24.08.
Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 78.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (28.29), we can say RMD is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.26, RMD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 79.47% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. RMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 20.26 |
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 77.89% of the companies listed in the same industry.
RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 84.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.6 | ||
| EV/EBITDA | 17.49 |
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.
RMD's earnings are expected to grow with 13.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)1.49
EPS Next 2Y16.61%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
RMD has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.94, RMD pays a better dividend. On top of this RMD pays more dividend than 93.16% of the companies listed in the same industry.
With a Dividend Yield of 1.01, RMD pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
23.76% of the earnings are spent on dividend by RMD. This is a low number and sustainable payout ratio.
The dividend of RMD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.76%
EPS Next 2Y16.61%
EPS Next 3Y13.9%
212.91
+1.42 (+0.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners62.76%
Inst Owner Change0%
Ins Owners0.67%
Ins Owner Change-2.03%
Market Cap31.27B
Analysts74.78
Price Target273.86 (28.63%)
Short Float %5.99%
Short Ratio8.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.92
Dividend Growth(5Y)5.38%
DP23.76%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.4%
Min EPS beat(2)3.93%
Max EPS beat(2)6.87%
EPS beat(4)3
Avg EPS beat(4)5.17%
Min EPS beat(4)-0.37%
Max EPS beat(4)10.24%
EPS beat(8)6
Avg EPS beat(8)2.91%
EPS beat(12)8
Avg EPS beat(12)1.42%
EPS beat(16)11
Avg EPS beat(16)1.68%
Revenue beat(2)2
Avg Revenue beat(2)1.45%
Min Revenue beat(2)0.16%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)0.85%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)8
Avg Revenue beat(16)0.43%
PT rev (1m)0.05%
PT rev (3m)7.51%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.56%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 20.26 | ||
| P/S | 6.35 | ||
| P/FCF | 22.6 | ||
| P/OCF | 21.18 | ||
| P/B | 5.95 | ||
| P/tB | 15.56 | ||
| EV/EBITDA | 17.49 |
EPS(TTM)8.84
EY4.15%
EPS(NY)10.51
Fwd EY4.94%
FCF(TTM)9.42
FCFY4.43%
OCF(TTM)10.05
OCFY4.72%
SpS33.55
BVpS35.77
TBVpS13.68
PEG (NY)1.03
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 23.77% | ||
| ROCE | 24.81% | ||
| ROIC | 20.12% | ||
| ROICexc | 21.94% | ||
| ROICexgc | 50.13% | ||
| OM | 31.67% | ||
| PM (TTM) | 25.35% | ||
| GM | 58.39% | ||
| FCFM | 28.09% |
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-Score9
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 39.18% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 64.4 | ||
| Cash Conversion | 82.18% | ||
| Profit Quality | 110.82% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 12.76 |
F-Score9
WACC8.85%
ROIC/WACC2.27
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)30%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%29.26%
EPS Next Y23.4%
EPS Next 2Y16.61%
EPS Next 3Y13.9%
EPS Next 5Y12.24%
Revenue 1Y (TTM)9.38%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%10.26%
Revenue Next Year9.14%
Revenue Next 2Y8.26%
Revenue Next 3Y7.89%
Revenue Next 5Y8.44%
EBIT growth 1Y28.4%
EBIT growth 3Y14.69%
EBIT growth 5Y16.83%
EBIT Next Year30.09%
EBIT Next 3Y15.4%
EBIT Next 5Y12.24%
FCF growth 1Y524.38%
FCF growth 3Y27.55%
FCF growth 5Y27.5%
OCF growth 1Y298.76%
OCF growth 3Y23.9%
OCF growth 5Y25%