RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
246.67 USD
+1.73 (+0.71%)
246.67 USD
0 (0%)
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. 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. 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.
RMD had positive earnings in each of the past 5 years.
Each year in the past 5 years RMD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.31%, RMD belongs to the top of the industry, outperforming 97.83% 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.
RMD has a Return On Invested Capital of 20.50%. This is amongst the best in the industry. RMD outperforms 97.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMD is significantly above the industry average of 8.82%.
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
RMD has a Profit Margin of 27.35%. This is amongst the best in the industry. RMD outperforms 96.20% of its industry peers.
RMD's Profit Margin has improved in the last couple of years.
The Operating Margin of RMD (33.49%) is better than 99.46% of its industry peers.
RMD's Operating Margin has improved in the last couple of years.
RMD's Gross Margin of 60.05% is in line compared to the rest of the industry. RMD outperforms 58.70% 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.
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
RMD has an Altman-Z score of 12.62. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD's Altman-Z score of 12.62 is amongst the best of the industry. RMD outperforms 91.85% of its industry peers.
RMD has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
RMD's Debt to FCF ratio of 0.38 is amongst the best of the industry. RMD outperforms 91.85% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.07, RMD is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.62 |
ROIC/WACC2.35
WACC8.71%
2.3 Liquidity
RMD has a Current Ratio of 2.89. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RMD (2.89) is comparable to the rest of the industry.
A Quick Ratio of 2.13 indicates that RMD has no problem at all paying its short term obligations.
With a Quick ratio value of 2.13, RMD perfoms like the industry average, outperforming 55.43% 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.
Based on estimates for the next years, RMD will show a quite strong growth in Revenue. The Revenue will grow by 8.22% on average per year.
EPS Next Y14.96%
EPS Next 2Y12.71%
EPS Next 3Y11.25%
EPS Next 5Y10.39%
Revenue Next Year9.24%
Revenue Next 2Y8.28%
Revenue Next 3Y7.74%
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.
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
RMD is valuated rather expensively with a Price/Earnings ratio of 24.92.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (26.61), we can say RMD is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.33, RMD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 80.98% of the companies listed in the same industry.
RMD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 20.33 |
4.2 Price Multiples
78.80% of the companies in the same industry are more expensive than RMD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 88.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.5 | ||
| EV/EBITDA | 18.07 |
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)1.67
EPS Next 2Y12.71%
EPS Next 3Y11.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, RMD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.20, RMD pays a better dividend. On top of this RMD pays more dividend than 92.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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 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
22.31% 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.
DP22.31%
EPS Next 2Y12.71%
EPS Next 3Y11.25%
246.67
+1.73 (+0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners65.59%
Inst Owner Change0.43%
Ins Owners0.5%
Ins Owner Change1.91%
Market Cap36.01B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts76
Price Target300.12 (21.67%)
Short Float %7.18%
Short Ratio9.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.29%
Min EPS beat(2)-1.16%
Max EPS beat(2)1.74%
EPS beat(4)2
Avg EPS beat(4)0.99%
Min EPS beat(4)-1.16%
Max EPS beat(4)3.93%
EPS beat(8)5
Avg EPS beat(8)3.04%
EPS beat(12)8
Avg EPS beat(12)2.07%
EPS beat(16)9
Avg EPS beat(16)0.8%
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)-0.34%
PT rev (3m)1.66%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 20.33 | ||
| P/S | 6.85 | ||
| P/FCF | 20.5 | ||
| P/OCF | 19.12 | ||
| P/B | 5.88 | ||
| P/tB | 13.69 | ||
| EV/EBITDA | 18.07 |
EPS(TTM)9.9
EY4.01%
EPS(NY)12.13
Fwd EY4.92%
FCF(TTM)12.03
FCFY4.88%
OCF(TTM)12.9
OCFY5.23%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.67
PEG (5Y)1.67
Graham Number96.65
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 | 33.41% |
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 | 63.08 | ||
| Cash Conversion | 96.42% | ||
| Profit Quality | 122.16% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | 12.62 |
F-Score7
WACC8.71%
ROIC/WACC2.35
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 Y14.96%
EPS Next 2Y12.71%
EPS Next 3Y11.25%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.24%
Revenue Next 2Y8.28%
Revenue Next 3Y7.74%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year26.39%
EBIT Next 3Y13.82%
EBIT Next 5Y11.02%
FCF growth 1Y121.67%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y101.45%
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 24.92 and the Price/Book (PB) ratio is 5.88.
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%.