RESMED INC (RMD)
US7611521078 - Common Stock
Taking everything into account, RMD scores 6 out of 10 in our fundamental rating. RMD was compared to 192 industry peers in the Health Care Equipment & Supplies industry. While RMD has a great profitability rating, there are some minor concerns on its financial health. RMD has a decent growth rate and is not valued too expensively.
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's Return On Assets of 12.89% is amongst the best of the industry. RMD outperforms 96.35% of its industry peers.
RMD's Return On Equity of 19.87% is amongst the best of the industry. RMD outperforms 94.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.09%, RMD belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RMD is significantly above the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 19.87% | ||
| ROIC | 16.09% |
ROA(3y)12.88%
ROA(5y)12.41%
ROE(3y)20.46%
ROE(5y)21.16%
ROIC(3y)17.88%
ROIC(5y)16.94%
1.3 Margins
The Profit Margin of RMD (19.77%) is better than 94.79% of its industry peers.
RMD's Profit Margin has improved in the last couple of years.
The Operating Margin of RMD (26.98%) is better than 96.35% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
The Gross Margin of RMD (55.11%) 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 | 26.98% | ||
| PM (TTM) | 19.77% | ||
| GM | 55.11% |
OM growth 3Y-0.1%
OM growth 5Y2.65%
PM growth 3Y0.36%
PM growth 5Y9.52%
GM growth 3Y-1.34%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RMD is creating some value.
The number of shares outstanding for RMD has been increased compared to 1 year ago.
RMD has more shares outstanding than it did 5 years ago.
RMD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.23 indicates that RMD is not in any danger for bankruptcy at the moment.
The Altman-Z score of RMD (10.23) is better than 88.02% of its industry peers.
RMD has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
RMD's Debt to FCF ratio of 1.30 is amongst the best of the industry. RMD outperforms 90.10% of its industry peers.
RMD has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
RMD's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. RMD outperforms 46.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 10.23 |
ROIC/WACC1.62
WACC9.94%
2.3 Liquidity
RMD has a Current Ratio of 3.11. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.11, RMD is in line with its industry, outperforming 48.96% of the companies in the same industry.
A Quick Ratio of 1.89 indicates that RMD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.89, RMD is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.71% over the past year.
The Earnings Per Share has been growing by 12.81% on average over the past years. This is quite good.
Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 19.69% in the last year.
RMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.53% yearly.
EPS 1Y (TTM)13.71%
EPS 3Y10.66%
EPS 5Y12.81%
EPS growth Q2Q13.25%
Revenue 1Y (TTM)19.69%
Revenue growth 3Y12.61%
Revenue growth 5Y12.53%
Revenue growth Q2Q12.48%
3.2 Future
Based on estimates for the next years, RMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.71% on average per year.
Based on estimates for the next years, RMD will show a small growth in Revenue. The Revenue will grow by 7.72% on average per year.
EPS Next Y15.98%
EPS Next 2Y12.84%
EPS Next 3Y11.68%
EPS Next 5Y11.71%
Revenue Next Year9.32%
Revenue Next 2Y7.76%
Revenue Next 3Y7.3%
Revenue Next 5Y7.72%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 31.62, the valuation of RMD can be described as expensive.
RMD's Price/Earnings ratio is a bit cheaper when compared to the industry. RMD is cheaper than 77.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (24.55), we can say RMD is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 26.18, the valuation of RMD can be described as expensive.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than 78.13% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (20.92), we can say RMD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 26.18 |
4.2 Price Multiples
77.08% of the companies in the same industry are more expensive than RMD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaper than 84.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.51 | ||
| EV/EBITDA | 23.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RMD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)2.47
EPS Next 2Y12.84%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.88%, which is pretty low.
RMD's Dividend Yield is rather good when compared to the industry average which is at 1.68. RMD pays more dividend than 92.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, RMD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of RMD has a limited annual growth rate of 4.68%.
RMD has been paying a dividend for at least 10 years, so it has 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)4.68%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
RMD pays out 30.39% 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.
DP30.39%
EPS Next 2Y12.84%
EPS Next 3Y11.68%
RESMED INC
NYSE:RMD (5/1/2024, 7:19:57 PM)
After market: 215.01 0 (0%)215.01
+1.02 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 26.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.98
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 19.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.98% | ||
| PM (TTM) | 19.77% | ||
| GM | 55.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.71%
EPS 3Y10.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.69%
Revenue growth 3Y12.61%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y