RESMED INC (RMD) Fundamental Analysis & Valuation

NYSE:RMD • US7611521078

Current stock price

220.47 USD
-2.03 (-0.91%)
At close:
219.4 USD
-1.07 (-0.49%)
After Hours:

This RMD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. RMD Profitability Analysis

1.1 Basic Checks

  • RMD had positive earnings in the past year.
  • In the past year RMD had a positive cash flow from operations.
  • In the past 5 years RMD has always been profitable.
  • Each year in the past 5 years RMD had a positive operating cash flow.
RMD Yearly Net Income VS EBIT VS OCF VS FCFRMD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • RMD's Return On Assets of 17.47% is amongst the best of the industry. RMD outperforms 97.34% of its industry peers.
  • With an excellent Return On Equity value of 23.51%, RMD belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
  • RMD has a Return On Invested Capital of 20.84%. This is amongst the best in the industry. RMD outperforms 97.34% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for RMD is significantly above the industry average of 9.31%.
  • The last Return On Invested Capital (20.84%) for RMD is above the 3 year average (18.06%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 17.47%
ROE 23.51%
ROIC 20.84%
ROA(3y)15.1%
ROA(5y)14.12%
ROE(3y)22.06%
ROE(5y)21.17%
ROIC(3y)18.06%
ROIC(5y)18.51%
RMD Yearly ROA, ROE, ROICRMD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 27.53%, RMD belongs to the top of the industry, outperforming 97.34% of the companies in the same industry.
  • In the last couple of years the Profit Margin of RMD has grown nicely.
  • With an excellent Operating Margin value of 34.11%, RMD belongs to the best of the industry, outperforming 99.47% 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 (60.85%) is better than 62.77% of its industry peers.
  • In the last couple of years the Gross Margin of RMD has remained more or less at the same level.
Industry RankSector Rank
OM 34.11%
PM (TTM) 27.53%
GM 60.85%
OM growth 3Y5.43%
OM growth 5Y3.67%
PM growth 3Y7.71%
PM growth 5Y5.3%
GM growth 3Y1.6%
GM growth 5Y0.42%
RMD Yearly Profit, Operating, Gross MarginsRMD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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8

2. RMD Health Analysis

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 reduced 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 has been reduced compared to a year ago.
RMD Yearly Shares OutstandingRMD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
RMD Yearly Total Debt VS Total AssetsRMD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 11.64 indicates that RMD is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 11.64, RMD belongs to the best of the industry, outperforming 93.09% of the companies in the same industry.
  • RMD has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
  • The Debt to FCF ratio of RMD (0.37) is better than 91.49% of its industry peers.
  • RMD has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • RMD has a better Debt to Equity ratio (0.06) than 68.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.37
Altman-Z 11.64
ROIC/WACC1.97
WACC10.59%
RMD Yearly LT Debt VS Equity VS FCFRMD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • RMD has a Current Ratio of 3.06. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
  • With a Current ratio value of 3.06, RMD perfoms like the industry average, outperforming 55.85% of the companies in the same industry.
  • RMD has a Quick Ratio of 2.32. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
  • RMD has a Quick ratio (2.32) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 3.06
Quick Ratio 2.32
RMD Yearly Current Assets VS Current LiabilitesRMD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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6

3. RMD Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 16.29% 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 14.94% on average per year.
  • The Revenue has grown by 9.57% 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 11.72% on average per year.
EPS 1Y (TTM)16.29%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.64%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.77% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 8.40% on average over the next years. This is quite good.
EPS Next Y16.4%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
EPS Next 5Y10.77%
Revenue Next Year9.97%
Revenue Next 2Y8.67%
Revenue Next 3Y7.92%
Revenue Next 5Y8.4%

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.
  • 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.
RMD Yearly Revenue VS EstimatesRMD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
RMD Yearly EPS VS EstimatesRMD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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5

4. RMD Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.45 indicates a rather 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 77.66% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.89. RMD is around the same levels.
  • With a Price/Forward Earnings ratio of 17.95, RMD is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a rather cheap valuation: RMD is cheaper than 82.45% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (22.19), we can say RMD is valued inline with the index average.
Industry RankSector Rank
PE 21.45
Fwd PE 17.95
RMD Price Earnings VS Forward Price EarningsRMD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than the industry average as 77.13% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 90.96% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.08
EV/EBITDA 15.33
RMD Per share dataRMD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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)1.31
PEG (5Y)1.44
EPS Next 2Y13.39%
EPS Next 3Y11.65%

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7

5. RMD Dividend Analysis

5.1 Amount

  • RMD has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.24, RMD pays a better dividend. On top of this RMD pays more dividend than 93.09% of the companies listed in the same industry.
  • With a Dividend Yield of 1.08, RMD pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.08%

5.2 History

  • On average, the dividend of RMD grows each year by 6.33%, which is quite nice.
  • RMD has been paying a dividend for at least 10 years, so it has a reliable track record.
  • RMD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.33%
Div Incr Years12
Div Non Decr Years12
RMD Yearly Dividends per shareRMD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 22.25% of the earnings are spent on dividend by RMD. This is a low number and sustainable payout ratio.
  • The dividend of RMD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.25%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
RMD Yearly Income VS Free CF VS DividendRMD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
RMD Dividend Payout.RMD Dividend Payout, showing the Payout Ratio.RMD Dividend Payout.PayoutRetained Earnings

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RMD Fundamentals: All Metrics, Ratios and Statistics

RESMED INC

NYSE:RMD (3/27/2026, 8:04:00 PM)

After market: 219.4 -1.07 (-0.49%)

220.47

-2.03 (-0.91%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners68.21%
Inst Owner Change5.84%
Ins Owners0.49%
Ins Owner Change-0.27%
Market Cap32.12B
Revenue(TTM)5.40B
Net Income(TTM)1.49B
Analysts74.4
Price Target302.83 (37.36%)
Short Float %8.17%
Short Ratio10.81
Dividend
Industry RankSector Rank
Dividend Yield 1.08%
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.25%
Div Incr Years12
Div Non Decr Years12
Ex-Date02-12
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-1.16%
Max EPS beat(2)2.15%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.15%
EPS beat(8)5
Avg EPS beat(8)2.85%
EPS beat(12)8
Avg EPS beat(12)2.12%
EPS beat(16)10
Avg EPS beat(16)1.2%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.91%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.91%
Revenue beat(8)5
Avg Revenue beat(8)0.55%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.24%
PT rev (1m)-0.2%
PT rev (3m)1.48%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 21.45
Fwd PE 17.95
P/S 5.95
P/FCF 18.08
P/OCF 16.78
P/B 5.08
P/tB 11.28
EV/EBITDA 15.33
EPS(TTM)10.28
EY4.66%
EPS(NY)12.28
Fwd EY5.57%
FCF(TTM)12.2
FCFY5.53%
OCF(TTM)13.14
OCFY5.96%
SpS37.05
BVpS43.39
TBVpS19.54
PEG (NY)1.31
PEG (5Y)1.44
Graham Number100.18
Profitability
Industry RankSector Rank
ROA 17.47%
ROE 23.51%
ROCE 25.38%
ROIC 20.84%
ROICexc 25.9%
ROICexgc 63.96%
OM 34.11%
PM (TTM) 27.53%
GM 60.85%
FCFM 32.91%
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-Score6
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.37
Debt/EBITDA 0.2
Cap/Depr 67.31%
Cap/Sales 2.55%
Interest Coverage 53.22
Cash Conversion 93.57%
Profit Quality 119.57%
Current Ratio 3.06
Quick Ratio 2.32
Altman-Z 11.64
F-Score6
WACC10.59%
ROIC/WACC1.97
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)16.29%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.64%
EPS Next Y16.4%
EPS Next 2Y13.39%
EPS Next 3Y11.65%
EPS Next 5Y10.77%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.98%
Revenue Next Year9.97%
Revenue Next 2Y8.67%
Revenue Next 3Y7.92%
Revenue Next 5Y8.4%
EBIT growth 1Y18%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year26.45%
EBIT Next 3Y13.99%
EBIT Next 5Y11.01%
FCF growth 1Y88.25%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y77.41%
OCF growth 3Y70.86%
OCF growth 5Y16.9%

RESMED INC / RMD Fundamental Analysis 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 21.45 and the Price/Book (PB) ratio is 5.08.


What is the financial health of RESMED INC (RMD) stock?

The financial health rating of RESMED INC (RMD) is 8 / 10.