RESMED INC (RMD) Fundamental Analysis & Valuation

NYSE:RMD • US7611521078

Current stock price

224.09 USD
+1.24 (+0.56%)
At close:
221.44 USD
-2.65 (-1.18%)
After Hours:

This RMD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. RMD Profitability Analysis

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.
RMD Yearly Net Income VS EBIT VS OCF VS FCFRMD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 17.47%, RMD belongs to the best of the industry, outperforming 97.34% of the companies in the same industry.
  • With an excellent Return On Equity value of 23.51%, RMD belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
  • RMD has a better Return On Invested Capital (20.84%) than 97.34% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for RMD is significantly above the industry average of 9.36%.
  • The 3 year average ROIC (18.06%) for RMD is below the current ROIC(20.84%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 17.47%
ROE 23.51%
ROIC 20.84%
ROA(3y)15.1%
ROA(5y)14.12%
ROE(3y)22.06%
ROE(5y)21.17%
ROIC(3y)18.06%
ROIC(5y)18.51%
RMD Yearly ROA, ROE, ROICRMD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • RMD's Profit Margin of 27.53% is amongst the best of the industry. RMD outperforms 97.34% of its industry peers.
  • In the last couple of years the Profit Margin of RMD has grown nicely.
  • RMD has a better Operating Margin (34.11%) than 99.47% of its industry peers.
  • In the last couple of years the Operating Margin of RMD has grown nicely.
  • The Gross Margin of RMD (60.85%) is better than 62.77% of its industry peers.
  • RMD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 34.11%
PM (TTM) 27.53%
GM 60.85%
OM growth 3Y5.43%
OM growth 5Y3.67%
PM growth 3Y7.71%
PM growth 5Y5.3%
GM growth 3Y1.6%
GM growth 5Y0.42%
RMD Yearly Profit, Operating, Gross MarginsRMD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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8

2. RMD Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMD is creating value.
  • Compared to 1 year ago, RMD has less shares outstanding
  • RMD has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, RMD has an improved debt to assets ratio.
RMD Yearly Shares OutstandingRMD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
RMD Yearly Total Debt VS Total AssetsRMD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 11.78 indicates that RMD is not in any danger for bankruptcy at the moment.
  • RMD's Altman-Z score of 11.78 is amongst the best of the industry. RMD outperforms 92.02% of its industry peers.
  • RMD has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
  • The Debt to FCF ratio of RMD (0.37) is better than 91.49% of its industry peers.
  • A Debt/Equity ratio of 0.06 indicates that RMD is not too dependend on debt financing.
  • RMD has a better Debt to Equity ratio (0.06) than 68.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.37
Altman-Z 11.78
ROIC/WACC1.99
WACC10.46%
RMD Yearly LT Debt VS Equity VS FCFRMD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 3.06 indicates that RMD has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 3.06, RMD is in line with its industry, outperforming 55.85% of the companies in the same industry.
  • A Quick Ratio of 2.32 indicates that RMD has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.32, RMD is in line with its industry, outperforming 56.91% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.06
Quick Ratio 2.32
RMD Yearly Current Assets VS Current LiabilitesRMD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. RMD Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 16.29% over the past year.
  • The Earnings Per Share has been growing by 14.94% on average over the past years. This is quite good.
  • Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 9.57% in the last year.
  • Measured over the past years, RMD shows a quite strong growth in Revenue. The Revenue has been growing by 11.72% on average per year.
EPS 1Y (TTM)16.29%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.64%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%

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 10.77% yearly.
  • The Revenue is expected to grow by 8.40% on average over the next years. This is quite good.
EPS Next Y16.4%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
EPS Next 5Y10.77%
Revenue Next Year9.97%
Revenue Next 2Y8.67%
Revenue Next 3Y7.92%
Revenue Next 5Y8.4%

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.
RMD Yearly Revenue VS EstimatesRMD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
RMD Yearly EPS VS EstimatesRMD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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6

4. RMD Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 21.80, RMD is valued on the expensive side.
  • Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 77.13% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (25.60), we can say RMD is valued inline with the index average.
  • RMD is valuated rather expensively with a Price/Forward Earnings ratio of 18.25.
  • Based on the Price/Forward Earnings ratio, RMD is valued cheaply inside the industry as 80.32% of the companies are valued more expensively.
  • RMD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 21.8
Fwd PE 18.25
RMD Price Earnings VS Forward Price EarningsRMD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 77.66% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 90.96% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.38
EV/EBITDA 15.59
RMD Per share dataRMD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • RMD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.33
PEG (5Y)1.46
EPS Next 2Y13.39%
EPS Next 3Y11.65%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. RMD Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.08%, RMD has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.24, RMD pays a better dividend. On top of this RMD pays more dividend than 93.09% of the companies listed in the same industry.
  • With a Dividend Yield of 1.08, RMD pays less dividend than the S&P500 average, which is at 1.88.
Industry RankSector Rank
Dividend Yield 1.08%

5.2 History

  • The dividend of RMD is nicely growing with an annual growth rate of 6.33%!
  • 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
RMD Yearly Dividends per shareRMD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 22.25% 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.
DP22.25%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
RMD Yearly Income VS Free CF VS DividendRMD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
RMD Dividend Payout.RMD Dividend Payout, showing the Payout Ratio.RMD Dividend Payout.PayoutRetained Earnings

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RMD Fundamentals: All Metrics, Ratios and Statistics

RESMED INC

NYSE:RMD (4/2/2026, 8:04:00 PM)

After market: 221.44 -2.65 (-1.18%)

224.09

+1.24 (+0.56%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners68.21%
Inst Owner Change5.84%
Ins Owners0.49%
Ins Owner Change-0.27%
Market Cap32.65B
Revenue(TTM)5.40B
Net Income(TTM)1.49B
Analysts74.4
Price Target302.83 (35.14%)
Short Float %8.17%
Short Ratio10.32
Dividend
Industry RankSector Rank
Dividend Yield 1.08%
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.25%
Div Incr Years12
Div Non Decr Years12
Ex-Date02-12
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-1.16%
Max EPS beat(2)2.15%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.15%
EPS beat(8)5
Avg EPS beat(8)2.85%
EPS beat(12)8
Avg EPS beat(12)2.12%
EPS beat(16)10
Avg EPS beat(16)1.2%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.91%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.91%
Revenue beat(8)5
Avg Revenue beat(8)0.55%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.24%
PT rev (1m)-0.2%
PT rev (3m)1.48%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 21.8
Fwd PE 18.25
P/S 6.05
P/FCF 18.38
P/OCF 17.05
P/B 5.16
P/tB 11.47
EV/EBITDA 15.59
EPS(TTM)10.28
EY4.59%
EPS(NY)12.28
Fwd EY5.48%
FCF(TTM)12.2
FCFY5.44%
OCF(TTM)13.14
OCFY5.86%
SpS37.05
BVpS43.39
TBVpS19.54
PEG (NY)1.33
PEG (5Y)1.46
Graham Number100.18
Profitability
Industry RankSector Rank
ROA 17.47%
ROE 23.51%
ROCE 25.38%
ROIC 20.84%
ROICexc 25.9%
ROICexgc 63.96%
OM 34.11%
PM (TTM) 27.53%
GM 60.85%
FCFM 32.91%
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-Score6
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.37
Debt/EBITDA 0.2
Cap/Depr 67.31%
Cap/Sales 2.55%
Interest Coverage 53.22
Cash Conversion 93.57%
Profit Quality 119.57%
Current Ratio 3.06
Quick Ratio 2.32
Altman-Z 11.78
F-Score6
WACC10.46%
ROIC/WACC1.99
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)16.29%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.64%
EPS Next Y16.4%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
EPS Next 5Y10.77%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%
Revenue Next Year9.97%
Revenue Next 2Y8.67%
Revenue Next 3Y7.92%
Revenue Next 5Y8.4%
EBIT growth 1Y18%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year26.45%
EBIT Next 3Y13.99%
EBIT Next 5Y11.01%
FCF growth 1Y88.25%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y77.41%
OCF growth 3Y70.86%
OCF growth 5Y16.9%

RESMED INC / RMD Fundamental Analysis 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 of RESMED INC (RMD) stock?

ChartMill assigns a valuation rating of 6 / 10 to RESMED INC (RMD). This can be considered as Fairly Valued.


How profitable is RESMED INC (RMD) stock?

RESMED INC (RMD) has a profitability rating of 9 / 10.


What is the expected EPS growth for RESMED INC (RMD) stock?

The Earnings per Share (EPS) of RESMED INC (RMD) is expected to grow by 16.4% in the next year.


Is the dividend of RESMED INC sustainable?

The dividend rating of RESMED INC (RMD) is 7 / 10 and the dividend payout ratio is 22.25%.