RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
261.72 USD
-3.54 (-1.33%)
Overall RMD gets a fundamental rating of 8 out of 10. We evaluated RMD against 190 industry peers in the Health Care Equipment & Supplies industry. RMD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RMD has a decent growth rate and is not valued too expensively. Finally RMD also has an excellent dividend rating. This makes RMD very considerable 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.
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
RMD has a better Return On Assets (17.14%) than 97.37% of its industry peers.
Looking at the Return On Equity, with a value of 23.47%, RMD belongs to the top of the industry, outperforming 96.32% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.35%, RMD belongs to the best of the industry, outperforming 97.89% 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 8.88%.
The 3 year average ROIC (18.06%) for RMD is below the current ROIC(19.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 23.47% | ||
| ROIC | 19.35% |
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 27.22%, RMD belongs to the best of the industry, outperforming 95.26% of the companies in the same industry.
RMD's Profit Margin has improved in the last couple of years.
RMD has a Operating Margin of 32.76%. This is amongst the best in the industry. RMD outperforms 99.47% of its industry peers.
RMD's Operating Margin has improved in the last couple of years.
RMD's Gross Margin of 59.33% is in line compared to the rest of the industry. RMD outperforms 57.89% of its industry peers.
RMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.76% | ||
| PM (TTM) | 27.22% | ||
| GM | 59.33% |
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.
Compared to 1 year ago, RMD has less shares outstanding
The number of shares outstanding for RMD has been increased compared to 5 years ago.
Compared to 1 year ago, RMD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.24 indicates that RMD is not in any danger for bankruptcy at the moment.
RMD has a better Altman-Z score (13.24) than 92.11% of its industry peers.
The Debt to FCF ratio of RMD is 0.40, which is an excellent value as it means it would take RMD, only 0.40 years of fcf income to pay off all of its debts.
RMD's Debt to FCF ratio of 0.40 is amongst the best of the industry. RMD outperforms 92.63% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that RMD is not too dependend on debt financing.
RMD's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. RMD outperforms 64.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 13.24 |
ROIC/WACC2.27
WACC8.52%
2.3 Liquidity
RMD has a Current Ratio of 3.44. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RMD (3.44) is better than 64.21% of its industry peers.
A Quick Ratio of 2.53 indicates that RMD has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.53, RMD is doing good in the industry, outperforming 62.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.54% 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.
RMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.84%.
RMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.72% yearly.
EPS 1Y (TTM)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.2%
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 8.18% on average over the next years. This is quite good.
EPS Next Y14.64%
EPS Next 2Y12.14%
EPS Next 3Y11.09%
EPS Next 5Y10.39%
Revenue Next Year9.08%
Revenue Next 2Y8.17%
Revenue Next 3Y7.88%
Revenue Next 5Y8.18%
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
RMD is valuated quite expensively with a Price/Earnings ratio of 27.41.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 75.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.83, RMD is valued at the same level.
A Price/Forward Earnings ratio of 23.90 indicates a rather expensive valuation of RMD.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
RMD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 23.9 |
4.2 Price Multiples
RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 75.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 83.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 19.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RMD does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of RMD may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)1.83
EPS Next 2Y12.14%
EPS Next 3Y11.09%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 1.83, RMD pays a better dividend. On top of this RMD pays more dividend than 92.11% of the companies listed in the same industry.
With a Dividend Yield of 0.89, RMD pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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
22.19% of the earnings are spent on dividend by RMD. This is a low number and sustainable payout ratio.
RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.19%
EPS Next 2Y12.14%
EPS Next 3Y11.09%
NYSE:RMD (10/24/2025, 2:36:04 PM)
261.72
-3.54 (-1.33%)
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 Change0.17%
Ins Owners0.48%
Ins Owner Change0.72%
Market Cap38.20B
Revenue(TTM)5.15B
Net Income(TTM)1.40B
Analysts75.45
Price Target295.22 (12.8%)
Short Float %5.94%
Short Ratio8.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.19%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.59%
Min EPS beat(2)-0.57%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)2.99%
Min EPS beat(4)-0.57%
Max EPS beat(4)6.87%
EPS beat(8)6
Avg EPS beat(8)3.24%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)10
Avg EPS beat(16)1.5%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)0.75%
Revenue beat(4)3
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.74%
Revenue beat(16)8
Avg Revenue beat(16)0.14%
PT rev (1m)0%
PT rev (3m)8.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 23.9 | ||
| P/S | 7.42 | ||
| P/FCF | 23.14 | ||
| P/OCF | 21.81 | ||
| P/B | 6.4 | ||
| P/tB | 15.55 | ||
| EV/EBITDA | 19.86 |
EPS(TTM)9.55
EY3.65%
EPS(NY)10.95
Fwd EY4.18%
FCF(TTM)11.31
FCFY4.32%
OCF(TTM)12
OCFY4.59%
SpS35.26
BVpS40.89
TBVpS16.83
PEG (NY)1.87
PEG (5Y)1.83
Graham Number93.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 23.47% | ||
| ROCE | 23.56% | ||
| ROIC | 19.35% | ||
| ROICexc | 23.28% | ||
| ROICexgc | 56.87% | ||
| OM | 32.76% | ||
| PM (TTM) | 27.22% | ||
| GM | 59.33% | ||
| FCFM | 32.08% |
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-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 42.68% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 59.33 | ||
| Cash Conversion | 91.15% | ||
| Profit Quality | 117.86% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 13.24 |
F-Score8
WACC8.52%
ROIC/WACC2.27
Cap/Depr(3y)54.54%
Cap/Depr(5y)63.73%
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)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
EPS Next Y14.64%
EPS Next 2Y12.14%
EPS Next 3Y11.09%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.2%
Revenue Next Year9.08%
Revenue Next 2Y8.17%
Revenue Next 3Y7.88%
Revenue Next 5Y8.18%
EBIT growth 1Y21.8%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.55%
EBIT Next 3Y13.18%
EBIT Next 5Y11.02%
FCF growth 1Y28.34%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y25%
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 8 / 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 27.41 and the Price/Book (PB) ratio is 6.4.
Is the dividend of RESMED INC sustainable?
The dividend rating of RESMED INC (RMD) is 7 / 10 and the dividend payout ratio is 22.19%.