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Why NYSE:RMD provides a good dividend, while having solid fundamentals.

By Mill Chart

Last update: Mar 6, 2024

RESMED INC (NYSE:RMD) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:RMD demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Evaluating Dividend: NYSE:RMD

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:RMD scores a 7 out of 10:

  • RMD's Dividend Yield is rather good when compared to the industry average which is at 2.88. RMD pays more dividend than 94.39% 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.
  • 30.39% 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.

Evaluating Health: NYSE:RMD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:RMD, the assigned 6 reflects its health status:

  • An Altman-Z score of 8.90 indicates that RMD is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.90, RMD belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
  • RMD has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
  • RMD has a Debt to FCF ratio of 1.30. This is amongst the best in the industry. RMD outperforms 90.31% of its industry peers.
  • RMD has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
  • A Current Ratio of 3.11 indicates that RMD has no problem at all paying its short term obligations.

Profitability Examination for NYSE:RMD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:RMD has earned a 8 out of 10:

  • The Return On Assets of RMD (12.89%) is better than 95.92% of its industry peers.
  • RMD has a better Return On Equity (19.87%) than 94.39% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 16.09%, RMD belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
  • RMD had an Average Return On Invested Capital over the past 3 years of 17.88%. This is significantly above the industry average of 8.51%.
  • RMD's Profit Margin of 19.77% is amongst the best of the industry. RMD outperforms 94.90% of its industry peers.
  • In the last couple of years the Profit Margin of RMD has grown nicely.
  • The Operating Margin of RMD (26.98%) is better than 96.43% of its industry peers.
  • RMD's Operating Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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RESMED INC

NYSE:RMD (5/17/2024, 7:23:49 PM)

After market: 218.57 0 (0%)

218.57

-1.4 (-0.64%)

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