RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
244.99 USD
-1.23 (-0.5%)
Taking everything into account, RMD scores 7 out of 10 in our fundamental rating. RMD was compared to 188 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 is not valued too expensively and it also shows a decent growth rate. 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.
RMD had a positive operating cash flow in the past year.
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
RMD's Return On Assets of 17.31% is amongst the best of the industry. RMD outperforms 97.34% of its industry peers.
The Return On Equity of RMD (23.49%) is better than 95.21% of its industry peers.
With an excellent Return On Invested Capital value of 20.50%, RMD belongs to the best of the industry, outperforming 97.87% 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 8.98%.
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 95.74% of its industry peers.
In the last couple of years the Profit Margin of RMD has grown nicely.
Looking at the Operating Margin, with a value of 33.49%, RMD belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
RMD's Operating Margin has improved in the last couple of years.
RMD has a Gross Margin (60.05%) which is in line with 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
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 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.
2.2 Solvency
An Altman-Z score of 12.55 indicates that RMD is not in any danger for bankruptcy at the moment.
RMD's Altman-Z score of 12.55 is amongst the best of the industry. RMD outperforms 92.02% of its industry peers.
The Debt to FCF ratio of RMD is 0.38, which is an excellent value as it means it would take RMD, only 0.38 years of fcf income to pay off all of its debts.
RMD has a Debt to FCF ratio of 0.38. This is amongst the best in the industry. RMD outperforms 92.02% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
The Debt to Equity ratio of RMD (0.07) is better than 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.55 |
ROIC/WACC2.37
WACC8.66%
2.3 Liquidity
A Current Ratio of 2.89 indicates that RMD has no problem at all paying its short term obligations.
With a Current ratio value of 2.89, RMD perfoms like the industry average, outperforming 56.91% of the companies in the same industry.
A Quick Ratio of 2.13 indicates that RMD has no problem at all paying its short term obligations.
RMD's Quick ratio of 2.13 is in line compared to the rest of the industry. RMD outperforms 53.72% of its industry peers.
| 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.
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 9.36% 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)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
Based on estimates for the next years, RMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.39% on average per year.
The Revenue is expected to grow by 8.22% on average over the next years. This is quite good.
EPS Next Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
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
With a Price/Earnings ratio of 24.75, RMD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 78.72% of the companies listed in the same industry.
RMD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.25, which indicates a rather expensive current valuation of RMD.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than the industry average as 78.72% 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 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than the industry average as 77.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaper than 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.35 | ||
| EV/EBITDA | 17.94 |
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.
PEG (NY)1.66
PEG (5Y)1.66
EPS Next 2Y12.56%
EPS Next 3Y11.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, RMD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.69, RMD pays a better dividend. On top of this RMD pays more dividend than 93.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of RMD grows each year by 6.33%, which is quite nice.
RMD has been paying a dividend for at least 10 years, so it has 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
RMD pays out 22.31% 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.
DP22.31%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
NYSE:RMD (11/19/2025, 2:58:32 PM)
244.99
-1.23 (-0.5%)
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 Change0.27%
Ins Owners0.48%
Ins Owner Change-0.09%
Market Cap35.75B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts75.2
Price Target301.14 (22.92%)
Short Float %6.68%
Short Ratio9.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.38%
Min EPS beat(2)1.02%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-0.57%
Max EPS beat(4)3.93%
EPS beat(8)6
Avg EPS beat(8)3.32%
EPS beat(12)9
Avg EPS beat(12)2.26%
EPS beat(16)10
Avg EPS beat(16)0.94%
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)2%
PT rev (3m)2.82%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0.22%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 20.25 | ||
| P/S | 6.8 | ||
| P/FCF | 20.35 | ||
| P/OCF | 18.98 | ||
| P/B | 5.84 | ||
| P/tB | 13.59 | ||
| EV/EBITDA | 17.94 |
EPS(TTM)9.9
EY4.04%
EPS(NY)12.1
Fwd EY4.94%
FCF(TTM)12.04
FCFY4.91%
OCF(TTM)12.91
OCFY5.27%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.66
PEG (5Y)1.66
Graham Number96.66
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 | 12.55 |
F-Score7
WACC8.66%
ROIC/WACC2.37
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 Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.55%
EBIT Next 3Y13.86%
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 24.75 and the Price/Book (PB) ratio is 5.84.
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%.