RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
259.455 USD
-1.25 (-0.48%)
Taking everything into account, RMD scores 7 out of 10 in our fundamental rating. RMD was compared to 185 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. RMD also has an excellent dividend rating. These ratings could make RMD a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year RMD was profitable.
- In the past year RMD had a positive cash flow from operations.
- Each year in the past 5 years RMD has been profitable.
- Each year in the past 5 years RMD had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 17.31%, RMD belongs to the best of the industry, outperforming 97.84% of the companies in the same industry.
- RMD has a better Return On Equity (23.49%) than 96.22% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 20.50%, RMD belongs to the top of the industry, outperforming 97.84% of the companies in the same industry.
- RMD had an Average Return On Invested Capital over the past 3 years of 18.06%. This is significantly above the industry average of 8.84%.
- 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
- With an excellent Profit Margin value of 27.35%, RMD belongs to the best of the industry, outperforming 96.22% 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 33.49%, RMD belongs to the best of the industry, outperforming 99.46% of the companies in the same industry.
- RMD's Operating Margin has improved in the last couple of years.
- RMD's Gross Margin of 60.05% is in line compared to the rest of the industry. RMD outperforms 60.00% of its industry peers.
- RMD's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMD 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
- RMD has an Altman-Z score of 13.18. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RMD (13.18) is better than 90.81% of its industry peers.
- RMD has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.38, RMD belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
- A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.07, RMD is doing good in the industry, outperforming 67.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 13.18 |
ROIC/WACC2.08
WACC9.85%
2.3 Liquidity
- RMD has a Current Ratio of 2.89. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of RMD (2.89) is comparable to the rest of the industry.
- RMD has a Quick Ratio of 2.13. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
- RMD has a Quick ratio of 2.13. This is comparable to the rest of the industry: RMD outperforms 57.30% 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.
- RMD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.94% yearly.
- 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
- RMD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.39% yearly.
- RMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.22% yearly.
EPS Next Y15%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
EPS Next 5Y10.39%
Revenue Next Year9.24%
Revenue Next 2Y8.29%
Revenue Next 3Y7.69%
Revenue Next 5Y8.22%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- A Price/Earnings ratio of 26.21 indicates a quite expensive valuation of RMD.
- Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 78.92% 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 27.54.
- A Price/Forward Earnings ratio of 21.36 indicates a rather expensive valuation of RMD.
- Based on the Price/Forward Earnings ratio, RMD is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
- RMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 21.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 78.38% of the companies in the same industry.
- 89.19% of the companies in the same industry are more expensive than RMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.56 | ||
| EV/EBITDA | 19.12 |
4.3 Compensation for Growth
- RMD's 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)1.75
PEG (5Y)1.75
EPS Next 2Y12.77%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
- RMD has a yearly dividend return of 0.96%, which is pretty low.
- RMD's Dividend Yield is rather good when compared to the industry average which is at 0.19. RMD pays more dividend than 92.43% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
- On average, the dividend of RMD grows each year by 6.33%, which is quite nice.
- 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)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 2Y12.77%
EPS Next 3Y11.27%
NYSE:RMD (1/16/2026, 12:39:02 PM)
259.455
-1.25 (-0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-29 2026-01-29
Inst Owners65.65%
Inst Owner Change0.31%
Ins Owners0.49%
Ins Owner Change1.84%
Market Cap37.87B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts74.4
Price Target298.42 (15.02%)
Short Float %7.28%
Short Ratio9.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.29%
Min EPS beat(2)-1.16%
Max EPS beat(2)1.74%
EPS beat(4)2
Avg EPS beat(4)0.99%
Min EPS beat(4)-1.16%
Max EPS beat(4)3.93%
EPS beat(8)5
Avg EPS beat(8)3.04%
EPS beat(12)8
Avg EPS beat(12)2.07%
EPS beat(16)9
Avg EPS beat(16)0.8%
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)-0.57%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 21.36 | ||
| P/S | 7.2 | ||
| P/FCF | 21.56 | ||
| P/OCF | 20.11 | ||
| P/B | 6.19 | ||
| P/tB | 14.4 | ||
| EV/EBITDA | 19.12 |
EPS(TTM)9.9
EY3.82%
EPS(NY)12.14
Fwd EY4.68%
FCF(TTM)12.03
FCFY4.64%
OCF(TTM)12.9
OCFY4.97%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.75
PEG (5Y)1.75
Graham Number96.65
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 | 13.18 |
F-Score7
WACC9.85%
ROIC/WACC2.08
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 Y15%
EPS Next 2Y12.77%
EPS Next 3Y11.27%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.24%
Revenue Next 2Y8.29%
Revenue Next 3Y7.69%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year27.03%
EBIT Next 3Y13.98%
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.
Can you provide the valuation status for RESMED INC?
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 26.21 and the Price/Book (PB) ratio is 6.19.
What is the financial health of RESMED INC (RMD) stock?
The financial health rating of RESMED INC (RMD) is 8 / 10.