RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
282.35 USD
-0.93 (-0.33%)
282.35 USD
0 (0%)
Taking everything into account, RMD scores 8 out of 10 in our fundamental rating. RMD was compared to 191 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 has a correct valuation and a medium growth rate. RMD also has an excellent dividend rating. With these ratings, RMD could be worth investigating further for dividend and quality investing!.
1. Profitability
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.
1.2 Ratios
With an excellent Return On Assets value of 17.14%, RMD belongs to the best of the industry, outperforming 97.38% of the companies in the same industry.
RMD has a Return On Equity of 23.47%. This is amongst the best in the industry. RMD outperforms 96.34% of its industry peers.
The Return On Invested Capital of RMD (19.35%) is better than 97.91% 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 9.00%.
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 95.29% of the companies in the same industry.
RMD's Profit Margin has improved in the last couple of years.
RMD's Operating Margin of 32.76% is amongst the best of the industry. RMD outperforms 99.48% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
The Gross Margin of RMD (59.33%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMD is creating value.
Compared to 1 year ago, RMD has less shares outstanding
Compared to 5 years ago, RMD has more shares outstanding
The debt/assets ratio for RMD has been reduced compared to a year ago.
2.2 Solvency
RMD has an Altman-Z score of 13.99. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD has a Altman-Z score of 13.99. This is amongst the best in the industry. RMD outperforms 93.19% 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.
RMD has a Debt to FCF ratio of 0.40. This is amongst the best in the industry. RMD outperforms 92.67% of its industry peers.
RMD has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.11, RMD is doing good in the industry, outperforming 63.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 13.99 |
ROIC/WACC2.23
WACC8.69%
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 64.92% of the companies in the same industry.
A Quick Ratio of 2.53 indicates that RMD has no problem at all paying its short term obligations.
The Quick ratio of RMD (2.53) is better than 63.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 |
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.
Looking at the last year, RMD shows a quite strong growth in Revenue. The Revenue has grown by 9.84% in the last year.
RMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.72% yearly.
EPS 1Y (TTM)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.2%
3.2 Future
The Earnings Per Share is expected to grow by 10.39% on average over the next years. This is quite good.
Based on estimates for the next years, RMD will show a quite strong growth in Revenue. The Revenue will grow by 8.18% on average per year.
EPS Next Y14.64%
EPS Next 2Y12.14%
EPS Next 3Y11.09%
EPS Next 5Y10.39%
Revenue Next Year9.08%
Revenue Next 2Y8.17%
Revenue Next 3Y7.88%
Revenue Next 5Y8.18%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.57, which means the current valuation is very expensive for RMD.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than the industry average as 73.82% of the companies are valued more expensively.
RMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.91.
The Price/Forward Earnings ratio is 25.79, which means the current valuation is very expensive for RMD.
Based on the Price/Forward Earnings ratio, RMD is valued a bit cheaper than 74.35% of the companies in the same industry.
RMD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.57 | ||
| Fwd PE | 25.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 75.39% of the companies listed in the same industry.
RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 83.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.04 | ||
| EV/EBITDA | 21.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RMD does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of RMD may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)1.98
EPS Next 2Y12.14%
EPS Next 3Y11.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, RMD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.79, RMD pays a better dividend. On top of this RMD pays more dividend than 91.62% of the companies listed in the same industry.
With a Dividend Yield of 0.87, RMD pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of RMD is nicely growing with an annual growth rate of 6.33%!
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.
RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.19%
EPS Next 2Y12.14%
EPS Next 3Y11.09%
282.35
-0.93 (-0.33%)
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 Change0%
Ins Owners0.48%
Ins Owner Change0.65%
Market Cap41.34B
Analysts75.45
Price Target295.22 (4.56%)
Short Float %5.94%
Short Ratio8.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)0%
PT rev (3m)11.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.57 | ||
| Fwd PE | 25.79 | ||
| P/S | 8.03 | ||
| P/FCF | 25.04 | ||
| P/OCF | 23.6 | ||
| P/B | 6.93 | ||
| P/tB | 16.83 | ||
| EV/EBITDA | 21.3 |
EPS(TTM)9.55
EY3.38%
EPS(NY)10.95
Fwd EY3.88%
FCF(TTM)11.28
FCFY3.99%
OCF(TTM)11.96
OCFY4.24%
SpS35.15
BVpS40.76
TBVpS16.78
PEG (NY)2.02
PEG (5Y)1.98
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%
ROICexcg growth 3Y8.61%
ROICexcg 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 | 0.34 | ||
| Cap/Depr | 42.68% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 59.33 | ||
| Cash Conversion | 91.15% | ||
| Profit Quality | 117.86% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 13.99 |
F-Score8
WACC8.69%
ROIC/WACC2.23
Cap/Depr(3y)54.54%
Cap/Depr(5y)63.73%
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)23.54%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%22.6%
EPS Next Y14.64%
EPS Next 2Y12.14%
EPS Next 3Y11.09%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.2%
Revenue Next Year9.08%
Revenue Next 2Y8.17%
Revenue Next 3Y7.88%
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%