RESMED INC (RMD) Stock Fundamental Analysis
NYSE:RMD - New York Stock Exchange, Inc. - US7611521078 - Common Stock - Currency: USD
Taking everything into account, RMD scores 7 out of 10 in our fundamental rating. RMD was compared to 189 industry peers in the Health Care Equipment & Supplies industry. RMD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RMD has a correct valuation and a medium growth rate. With these ratings, RMD could be worth investigating further for 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.
In the past 5 years RMD has always been profitable.
In the past 5 years RMD always reported a positive cash flow from operatings.
1.2 Ratios
RMD has a Return On Assets of 17.36%. This is amongst the best in the industry. RMD outperforms 97.35% of its industry peers.
With an excellent Return On Equity value of 23.68%, RMD belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
RMD's Return On Invested Capital of 19.73% is amongst the best of the industry. RMD outperforms 98.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMD is significantly above the industry average of 7.87%.
The 3 year average ROIC (17.61%) for RMD is below the current ROIC(19.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.36% | ||
| ROE | 23.68% | ||
| ROIC | 19.73% |
ROA(3y)14.48%
ROA(5y)13.41%
ROE(3y)21.97%
ROE(5y)21.45%
ROIC(3y)17.61%
ROIC(5y)17.76%
1.3 Margins
Looking at the Profit Margin, with a value of 26.15%, RMD belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
RMD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 32.10%, RMD belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
In the last couple of years the Operating Margin of RMD has grown nicely.
The Gross Margin of RMD (58.76%) is comparable to the rest of the industry.
RMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.1% | ||
| PM (TTM) | 26.15% | ||
| GM | 58.76% |
OM growth 3Y0.96%
OM growth 5Y3.9%
PM growth 3Y13.65%
PM growth 5Y7.02%
GM growth 3Y-0.59%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMD is creating value.
RMD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RMD has more shares outstanding
The debt/assets ratio for RMD has been reduced compared to a year ago.
2.2 Solvency
RMD has an Altman-Z score of 13.83. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.83, RMD belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
The Debt to FCF ratio of RMD is 0.43, which is an excellent value as it means it would take RMD, only 0.43 years of fcf income to pay off all of its debts.
RMD has a Debt to FCF ratio of 0.43. This is amongst the best in the industry. RMD outperforms 93.12% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that RMD is not too dependend on debt financing.
RMD's Debt to Equity ratio of 0.12 is in line compared to the rest of the industry. RMD outperforms 58.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 13.83 |
ROIC/WACC2.21
WACC8.94%
2.3 Liquidity
RMD has a Current Ratio of 3.41. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RMD (3.41) is comparable to the rest of the industry.
RMD has a Quick Ratio of 2.49. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD's Quick ratio of 2.49 is in line compared to the rest of the industry. RMD outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.24% 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 16.19% on average per year.
The Revenue has grown by 9.54% in the past year. This is quite good.
Measured over the past years, RMD shows a quite strong growth in Revenue. The Revenue has been growing by 12.44% on average per year.
EPS 1Y (TTM)25.24%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%11.27%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%7.92%
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 12.24% yearly.
Based on estimates for the next years, RMD will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y24%
EPS Next 2Y16.99%
EPS Next 3Y14.53%
EPS Next 5Y12.24%
Revenue Next Year9.42%
Revenue Next 2Y8.59%
Revenue Next 3Y8.11%
Revenue Next 5Y8.44%
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
RMD is valuated quite expensively with a Price/Earnings ratio of 27.33.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than 76.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, RMD is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.45, the valuation of RMD can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than the industry average as 76.72% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.43. RMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 23.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 75.13% of the companies in the same industry.
RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 84.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.33 | ||
| EV/EBITDA | 20.18 |
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.
A more expensive valuation may be justified as RMD's earnings are expected to grow with 14.53% in the coming years.
PEG (NY)1.14
PEG (5Y)1.69
EPS Next 2Y16.99%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.85%, which is pretty low.
Compared to an average industry Dividend Yield of 1.82, RMD pays a better dividend. On top of this RMD pays more dividend than 91.53% of the companies listed in the same industry.
With a Dividend Yield of 0.85, RMD pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of RMD has a limited annual growth rate of 5.38%.
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)5.38%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
23.14% 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.
DP23.14%
EPS Next 2Y16.99%
EPS Next 3Y14.53%
248.14
-5.21 (-2.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners62.76%
Inst Owner Change3.47%
Ins Owners0.67%
Ins Owner Change-0.78%
Market Cap36.38B
Analysts74.78
Price Target265.77 (7.1%)
Short Float %6.47%
Short Ratio8.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend1.92
Dividend Growth(5Y)5.38%
DP23.14%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.68%
Min EPS beat(2)-0.57%
Max EPS beat(2)3.93%
EPS beat(4)2
Avg EPS beat(4)2.47%
Min EPS beat(4)-0.57%
Max EPS beat(4)6.87%
EPS beat(8)5
Avg EPS beat(8)2.23%
EPS beat(12)8
Avg EPS beat(12)2.04%
EPS beat(16)10
Avg EPS beat(16)1.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)2.73%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)6
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.65%
PT rev (1m)-2.95%
PT rev (3m)1.33%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.54%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 23.45 | ||
| P/S | 7.25 | ||
| P/FCF | 23.33 | ||
| P/OCF | 22.01 | ||
| P/B | 6.56 | ||
| P/tB | 16.05 | ||
| EV/EBITDA | 20.18 |
EPS(TTM)9.08
EY3.66%
EPS(NY)10.58
Fwd EY4.26%
FCF(TTM)10.64
FCFY4.29%
OCF(TTM)11.27
OCFY4.54%
SpS34.25
BVpS37.82
TBVpS15.46
PEG (NY)1.14
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.36% | ||
| ROE | 23.68% | ||
| ROCE | 24.33% | ||
| ROIC | 19.73% | ||
| ROICexc | 22.96% | ||
| ROICexgc | 54.14% | ||
| OM | 32.1% | ||
| PM (TTM) | 26.15% | ||
| GM | 58.76% | ||
| FCFM | 31.06% |
ROA(3y)14.48%
ROA(5y)13.41%
ROE(3y)21.97%
ROE(5y)21.45%
ROIC(3y)17.61%
ROIC(5y)17.76%
ROICexc(3y)18.48%
ROICexc(5y)19.04%
ROICexgc(3y)42.98%
ROICexgc(5y)49.28%
ROCE(3y)21.71%
ROCE(5y)21.9%
ROICexcg growth 3Y-8.9%
ROICexcg growth 5Y-1.39%
ROICexc growth 3Y-2.46%
ROICexc growth 5Y5.3%
OM growth 3Y0.96%
OM growth 5Y3.9%
PM growth 3Y13.65%
PM growth 5Y7.02%
GM growth 3Y-0.59%
GM growth 5Y-0.23%
F-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 43.09% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 58.78 | ||
| Cash Conversion | 90.41% | ||
| Profit Quality | 118.77% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.49 | ||
| Altman-Z | 13.83 |
F-Score8
WACC8.94%
ROIC/WACC2.21
Cap/Depr(3y)67.15%
Cap/Depr(5y)68.87%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.44%
Profit Quality(3y)71.12%
Profit Quality(5y)91.2%
High Growth Momentum
Growth
EPS 1Y (TTM)25.24%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%11.27%
EPS Next Y24%
EPS Next 2Y16.99%
EPS Next 3Y14.53%
EPS Next 5Y12.24%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%7.92%
Revenue Next Year9.42%
Revenue Next 2Y8.59%
Revenue Next 3Y8.11%
Revenue Next 5Y8.44%
EBIT growth 1Y25.05%
EBIT growth 3Y14.69%
EBIT growth 5Y16.83%
EBIT Next Year30.09%
EBIT Next 3Y15.4%
EBIT Next 5Y12.24%
FCF growth 1Y282.58%
FCF growth 3Y27.55%
FCF growth 5Y27.5%
OCF growth 1Y208.76%
OCF growth 3Y23.9%
OCF growth 5Y25%