RESMED INC (RMD)
US7611521078 - Common Stock
Taking everything into account, RMD scores 6 out of 10 in our fundamental rating. RMD was compared to 192 industry peers in the Health Care Equipment & Supplies industry. RMD scores excellent on profitability, but there are some minor concerns on its financial health. RMD is not valued too expensively and it also shows a decent growth rate.
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.
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 better Return On Assets (14.06%) than 96.37% of its industry peers.
Looking at the Return On Equity, with a value of 20.70%, RMD belongs to the top of the industry, outperforming 94.30% of the companies in the same industry.
RMD has a Return On Invested Capital of 17.35%. This is amongst the best in the industry. RMD outperforms 96.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMD is significantly above the industry average of 8.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.06% | ||
| ROE | 20.7% | ||
| ROIC | 17.35% |
ROA(3y)12.88%
ROA(5y)12.41%
ROE(3y)20.46%
ROE(5y)21.16%
ROIC(3y)17.88%
ROIC(5y)16.94%
1.3 Margins
Looking at the Profit Margin, with a value of 20.91%, RMD belongs to the top of the industry, outperforming 95.34% of the companies in the same industry.
RMD's Profit Margin has improved in the last couple of years.
RMD has a better Operating Margin (28.12%) than 96.37% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
RMD has a Gross Margin (55.78%) which is comparable to the rest of the industry.
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 | 28.12% | ||
| PM (TTM) | 20.91% | ||
| GM | 55.78% |
OM growth 3Y-0.1%
OM growth 5Y2.65%
PM growth 3Y0.36%
PM growth 5Y9.52%
GM growth 3Y-1.34%
GM growth 5Y-0.45%
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.
The number of shares outstanding for RMD has been increased compared to 1 year ago.
The number of shares outstanding for RMD has been increased compared to 5 years ago.
The debt/assets ratio for RMD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.37 indicates that RMD is not in any danger for bankruptcy at the moment.
The Altman-Z score of RMD (11.37) is better than 88.08% of its industry peers.
The Debt to FCF ratio of RMD is 0.94, which is an excellent value as it means it would take RMD, only 0.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RMD (0.94) is better than 90.16% of its industry peers.
RMD has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.22, RMD is in line with its industry, outperforming 49.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 11.37 |
ROIC/WACC1.82
WACC9.53%
2.3 Liquidity
A Current Ratio of 3.04 indicates that RMD has no problem at all paying its short term obligations.
RMD's Current ratio of 3.04 is in line compared to the rest of the industry. RMD outperforms 46.63% of its industry peers.
RMD has a Quick Ratio of 1.97. This is a normal value and indicates that RMD is financially healthy and should not expect problems in meeting its short term obligations.
RMD's Quick ratio of 1.97 is on the low side compared to the rest of the industry. RMD is outperformed by 60.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.35% 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 12.81% on average per year.
Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 14.16% in the last year.
RMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.53% yearly.
EPS 1Y (TTM)14.35%
EPS 3Y10.66%
EPS 5Y12.81%
EPS growth Q2Q26.79%
Revenue 1Y (TTM)14.16%
Revenue growth 3Y12.61%
Revenue growth 5Y12.53%
Revenue growth Q2Q7.17%
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 12.41% yearly.
RMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.33% yearly.
EPS Next Y15.98%
EPS Next 2Y12.84%
EPS Next 3Y11.68%
EPS Next 5Y12.41%
Revenue Next Year9.32%
Revenue Next 2Y7.76%
Revenue Next 3Y7.3%
Revenue Next 5Y8.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 30.15, which means the current valuation is very expensive for RMD.
Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 78.24% of the companies listed in the same industry.
RMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
The Price/Forward Earnings ratio is 26.61, which means the current valuation is very expensive for RMD.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than 77.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, RMD is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 26.61 |
4.2 Price Multiples
RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 78.76% 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 85.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.97 | ||
| EV/EBITDA | 22.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RMD may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)2.35
EPS Next 2Y12.84%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 1.69, RMD pays a better dividend. On top of this RMD pays more dividend than 92.75% of the companies listed in the same industry.
With a Dividend Yield of 0.87, RMD pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of RMD has a limited annual growth rate of 4.68%.
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)4.68%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
28.85% 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.
DP28.85%
EPS Next 2Y12.84%
EPS Next 3Y11.68%
RESMED INC
NYSE:RMD (5/17/2024, 7:23:49 PM)
After market: 218.57 0 (0%)218.57
-1.4 (-0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap32.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 26.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.89
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.06% | ||
| ROE | 20.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.12% | ||
| PM (TTM) | 20.91% | ||
| GM | 55.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.04 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.35%
EPS 3Y10.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.16%
Revenue growth 3Y12.61%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y