Why the dividend investor may take a look at NYSE:RMD.

Discover RESMED INC (NYSE:RMD)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:RMD showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Analysis for NYSE:RMD

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:RMD has achieved a 7 out of 10:

• RMD's Dividend Yield is rather good when compared to the industry average which is at 2.93. RMD pays more dividend than 94.03% of the companies in the same industry.
• 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.
• RMD pays out 29.17% 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.

What does the Health looks like for NYSE:RMD

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:RMD has earned a 7 out of 10:

• RMD has an Altman-Z score of 7.73. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 7.73, RMD belongs to the best of the industry, outperforming 89.05% of the companies in the same industry.
• The Debt to FCF ratio of RMD is 1.72, which is an excellent value as it means it would take RMD, only 1.72 years of fcf income to pay off all of its debts.
• RMD's Debt to FCF ratio of 1.72 is amongst the best of the industry. RMD outperforms 91.54% of its industry peers.
• A Debt/Equity ratio of 0.32 indicates that RMD is not too dependend on debt financing.
• RMD has a Current Ratio of 2.99. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.

Understanding NYSE:RMD's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:RMD, the assigned 8 is a significant indicator of profitability:

• RMD has a better Return On Assets (13.45%) than 96.02% of its industry peers.
• RMD has a Return On Equity of 21.33%. This is amongst the best in the industry. RMD outperforms 95.02% of its industry peers.
• RMD has a better Return On Invested Capital (15.86%) than 96.52% of its industry peers.
• RMD's Profit Margin of 20.72% is amongst the best of the industry. RMD outperforms 95.02% of its industry peers.
• In the last couple of years the Profit Margin of RMD has grown nicely.
• RMD's Operating Margin of 26.62% is amongst the best of the industry. RMD outperforms 97.01% of its industry peers.
• RMD's Operating Margin has improved in the last couple of years.

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Check the latest full fundamental report of RMD for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.