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 187 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 is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years RMD 4 years were profitable.
Of the past 5 years RMD 4 years had a positive operating cash flow.
1.2 Ratios
RMD's Return On Assets of 17.36% is amongst the best of the industry. RMD outperforms 97.33% of its industry peers.
RMD has a Return On Equity of 23.68%. This is amongst the best in the industry. RMD outperforms 95.72% of its industry peers.
RMD's Return On Invested Capital of 19.73% is amongst the best of the industry. RMD outperforms 98.40% 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 7.92%.
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
RMD's Profit Margin of 26.15% is amongst the best of the industry. RMD outperforms 95.72% of its industry peers.
RMD's Profit Margin has improved in the last couple of years.
RMD has a better Operating Margin (32.10%) than 99.47% of its industry peers.
RMD's Operating Margin has improved in the last couple of years.
RMD has a Gross Margin of 58.76%. This is comparable to the rest of the industry: RMD outperforms 57.22% 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 | 32.1% | ||
| 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
RMD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
RMD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
RMD has an Altman-Z score of 14.64. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RMD (14.64) is better than 93.05% of its industry peers.
RMD has a debt to FCF ratio of 0.43. This is a very positive value and a sign of high solvency as it would only need 0.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.43, RMD belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that RMD is not too dependend on debt financing.
RMD has a Debt to Equity ratio (0.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 14.64 |
ROIC/WACC2.26
WACC8.73%
2.3 Liquidity
A Current Ratio of 3.41 indicates that RMD has no problem at all paying its short term obligations.
The Current ratio of RMD (3.41) is better than 60.43% of its industry peers.
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 56.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
RMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.54%, which is quite impressive.
The Earnings Per Share has been growing by 14.94% on average over the past years. This is quite good.
EPS 1Y (TTM)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.2%
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 10.20% yearly.
RMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.85% yearly.
EPS Next Y10.78%
EPS Next 2Y10.13%
EPS Next 3Y9.38%
EPS Next 5Y10.2%
Revenue Next Year8.15%
Revenue Next 2Y7.66%
Revenue Next 3Y7.56%
Revenue Next 5Y8.85%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.24 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 75.94% of the companies listed in the same industry.
RMD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
RMD is valuated quite expensively with a Price/Forward Earnings ratio of 26.39.
RMD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RMD is cheaper than 74.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. RMD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 26.39 |
4.2 Price Multiples
RMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RMD is cheaper than 73.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaper than 84.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.25 | ||
| EV/EBITDA | 21.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RMD may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)1.96
EPS Next 2Y10.13%
EPS Next 3Y9.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, RMD is not a good candidate for dividend investing.
RMD's Dividend Yield is rather good when compared to the industry average which is at 1.91. RMD pays more dividend than 91.44% of the companies in the same industry.
With a Dividend Yield of 0.78, RMD pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of RMD has a limited annual growth rate of 5.38%.
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)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.
The dividend of RMD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.14%
EPS Next 2Y10.13%
EPS Next 3Y9.38%
279.2
+7.26 (+2.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners65.15%
Inst Owner Change-0.31%
Ins Owners0.66%
Ins Owner Change-1.57%
Market Cap40.94B
Analysts74.78
Price Target272.84 (-2.28%)
Short Float %6.44%
Short Ratio11.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)2.66%
PT rev (3m)1.67%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 26.39 | ||
| P/S | 8.15 | ||
| P/FCF | 26.25 | ||
| P/OCF | 24.77 | ||
| P/B | 7.38 | ||
| P/tB | 18.06 | ||
| EV/EBITDA | 21.67 |
EPS(TTM)9.55
EY3.42%
EPS(NY)10.58
Fwd EY3.79%
FCF(TTM)10.64
FCFY3.81%
OCF(TTM)11.27
OCFY4.04%
SpS34.25
BVpS37.82
TBVpS15.46
PEG (NY)2.71
PEG (5Y)1.96
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 | 14.64 |
F-Score8
WACC8.73%
ROIC/WACC2.26
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)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
EPS Next Y10.78%
EPS Next 2Y10.13%
EPS Next 3Y9.38%
EPS Next 5Y10.2%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.2%
Revenue Next Year8.15%
Revenue Next 2Y7.66%
Revenue Next 3Y7.56%
Revenue Next 5Y8.85%
EBIT growth 1Y25.05%
EBIT growth 3Y14.69%
EBIT growth 5Y16.83%
EBIT Next Year31.4%
EBIT Next 3Y15.73%
EBIT Next 5Y12.52%
FCF growth 1Y282.58%
FCF growth 3Y27.55%
FCF growth 5Y27.5%
OCF growth 1Y208.76%
OCF growth 3Y23.9%
OCF growth 5Y25%