RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
248.95 USD
+2.07 (+0.84%)
247.65 USD
-1.3 (-0.52%)
RMD gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. RMD gets an excellent profitability rating and is at the same time showing great financial health properties. RMD has a correct valuation and a medium growth rate. RMD also has an excellent dividend rating. These ratings would make RMD suitable for dividend and 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.
Each year in the past 5 years RMD has 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 17.14%. This is amongst the best in the industry. RMD outperforms 97.35% of its industry peers.
The Return On Equity of RMD (23.47%) is better than 95.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.35%, RMD belongs to the top of the industry, outperforming 97.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RMD is significantly above the industry average of 9.06%.
The 3 year average ROIC (18.06%) for RMD is below the current ROIC(19.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 23.47% | ||
| ROIC | 19.35% |
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 27.22%, RMD belongs to the best 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 32.76%, 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.
RMD has a Gross Margin of 59.33%. This is comparable to the rest of the industry: RMD outperforms 58.20% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.76% | ||
| PM (TTM) | 27.22% | ||
| GM | 59.33% |
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
RMD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RMD has less shares outstanding
RMD has more shares outstanding than it did 5 years ago.
RMD has a better debt/assets ratio than last year.
2.2 Solvency
RMD has an Altman-Z score of 12.51. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD has a Altman-Z score of 12.51. This is amongst the best in the industry. RMD outperforms 91.53% of its industry peers.
The Debt to FCF ratio of RMD is 0.40, which is an excellent value as it means it would take RMD, only 0.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.40, RMD belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
RMD has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RMD (0.11) is better than 64.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 12.51 |
ROIC/WACC2.24
WACC8.65%
2.3 Liquidity
A Current Ratio of 3.44 indicates that RMD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.44, RMD is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
RMD has a Quick Ratio of 2.53. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RMD (2.53) is better than 62.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 |
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 9.84% 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)9.84%
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.
The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
EPS Next Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y10.89%
EPS Next 5Y10.39%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.7%
Revenue Next 5Y8.18%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.15 indicates a quite expensive valuation of RMD.
75.13% of the companies in the same industry are more expensive than RMD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, RMD is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.57, the valuation of RMD can be described as rather expensive.
79.89% of the companies in the same industry are more expensive than RMD, based on the Price/Forward Earnings ratio.
RMD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 20.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than 76.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaper than 83.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 18.83 |
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)1.69
PEG (5Y)1.68
EPS Next 2Y12.56%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.97%, which is pretty low.
RMD's Dividend Yield is rather good when compared to the industry average which is at 1.89. RMD pays more dividend than 93.65% of the companies in the same industry.
With a Dividend Yield of 0.97, RMD pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 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
5.3 Sustainability
RMD pays out 22.19% 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.
DP22.19%
EPS Next 2Y12.56%
EPS Next 3Y10.89%
248.95
+2.07 (+0.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners64.76%
Inst Owner Change-0.76%
Ins Owners0.48%
Ins Owner Change0.72%
Market Cap36.33B
Revenue(TTM)5.15B
Net Income(TTM)1.40B
Analysts75.2
Price Target301.14 (20.96%)
Short Float %6.18%
Short Ratio9.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.19%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.59%
Min EPS beat(2)-0.57%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)2.99%
Min EPS beat(4)-0.57%
Max EPS beat(4)6.87%
EPS beat(8)6
Avg EPS beat(8)3.24%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)10
Avg EPS beat(16)1.5%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)0.75%
Revenue beat(4)3
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.74%
Revenue beat(16)8
Avg Revenue beat(16)0.14%
PT rev (1m)2%
PT rev (3m)10.37%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 20.57 | ||
| P/S | 7.06 | ||
| P/FCF | 22.01 | ||
| P/OCF | 20.74 | ||
| P/B | 6.09 | ||
| P/tB | 14.79 | ||
| EV/EBITDA | 18.83 |
EPS(TTM)9.9
EY3.98%
EPS(NY)12.1
Fwd EY4.86%
FCF(TTM)11.31
FCFY4.54%
OCF(TTM)12
OCFY4.82%
SpS35.26
BVpS40.89
TBVpS16.83
PEG (NY)1.69
PEG (5Y)1.68
Graham Number95.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 23.47% | ||
| ROCE | 23.56% | ||
| ROIC | 19.35% | ||
| ROICexc | 23.28% | ||
| ROICexgc | 56.87% | ||
| OM | 32.76% | ||
| PM (TTM) | 27.22% | ||
| GM | 59.33% | ||
| FCFM | 32.08% |
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-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 50.71% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 59.33 | ||
| Cash Conversion | 92.95% | ||
| Profit Quality | 117.86% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 12.51 |
F-Score8
WACC8.65%
ROIC/WACC2.24
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 Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y10.89%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.7%
Revenue Next 5Y8.18%
EBIT growth 1Y21.8%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.55%
EBIT Next 3Y13.18%
EBIT Next 5Y11.02%
FCF growth 1Y28.34%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y25%
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 8 / 10 to RMD.
What is the valuation status for RMD stock?
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 25.15 and the Price/Book (PB) ratio is 6.09.
Is the dividend of RESMED INC sustainable?
The dividend rating of RESMED INC (RMD) is 7 / 10 and the dividend payout ratio is 22.19%.