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 503 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 decent growth rate and is not valued too expensively. These ratings could make RMD a good candidate for 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.
Each year in the past 5 years RMD had a positive operating cash flow.
1.2 Ratios
RMD has a Return On Assets of 17.36%. This is amongst the best in the industry. RMD outperforms 97.34% of its industry peers.
The Return On Equity of RMD (23.68%) is better than 95.21% of its industry peers.
RMD has a better Return On Invested Capital (19.73%) than 98.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMD is above the industry average of 13.70%.
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 95.74% of its industry peers.
RMD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 32.10%, RMD belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
RMD's Operating Margin has improved in the last couple of years.
RMD has a Gross Margin (58.76%) which is in line with 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
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 about the same amount of 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
An Altman-Z score of 13.78 indicates that RMD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.78, RMD belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
The Debt to FCF ratio of RMD is 0.43, which is an excellent value as it means it would take RMD, only 0.43 years of fcf income to pay off all of its debts.
RMD has a Debt to FCF ratio of 0.43. This is amongst the best in the industry. RMD outperforms 94.15% of its industry peers.
RMD has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
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 | 13.78 |
ROIC/WACC2.22
WACC8.89%
2.3 Liquidity
A Current Ratio of 3.41 indicates that RMD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.41, RMD is in the better half of the industry, outperforming 60.11% of the companies in the same industry.
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.
The Quick ratio of RMD (2.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.24% over the past year.
The Earnings Per Share has been growing by 16.19% 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 9.54% in the last year.
Measured over the past years, RMD shows a quite strong growth in Revenue. The Revenue has been growing by 12.44% on average per year.
EPS 1Y (TTM)25.24%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%11.27%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%7.92%
3.2 Future
The Earnings Per Share is expected to grow by 12.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y24%
EPS Next 2Y16.99%
EPS Next 3Y14.53%
EPS Next 5Y12.55%
Revenue Next Year9.42%
Revenue Next 2Y8.59%
Revenue Next 3Y8.11%
Revenue Next 5Y8.51%
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.
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
The Price/Earnings ratio is 27.78, which means the current valuation is very expensive for RMD.
Based on the Price/Earnings ratio, RMD is valued a bit cheaper than 76.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. RMD is around the same levels.
The Price/Forward Earnings ratio is 23.84, which indicates a rather expensive current valuation of RMD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 74.47% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. RMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 23.84 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than RMD, based on the Enterprise Value to EBITDA ratio.
RMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RMD is cheaper than 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.71 | ||
| EV/EBITDA | 20.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RMD has an outstanding profitability rating, which may justify a higher PE ratio.
RMD's earnings are expected to grow with 14.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)1.72
EPS Next 2Y16.99%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.85%, which is pretty low.
Compared to an average industry Dividend Yield of 2.39, RMD pays a better dividend. On top of this RMD pays more dividend than 91.49% of the companies listed 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 | 0.85% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.14%
EPS Next 2Y16.99%
EPS Next 3Y14.53%
252.21
+0.85 (+0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners62.76%
Inst Owner Change3.49%
Ins Owners0.67%
Ins Owner Change-1.42%
Market Cap36.98B
Analysts74.78
Price Target265.77 (5.38%)
Short Float %7.51%
Short Ratio9.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)-0.96%
PT rev (3m)-2.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.54%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 23.84 | ||
| P/S | 7.36 | ||
| P/FCF | 23.71 | ||
| P/OCF | 22.37 | ||
| P/B | 6.67 | ||
| P/tB | 16.31 | ||
| EV/EBITDA | 20.09 |
EPS(TTM)9.08
EY3.6%
EPS(NY)10.58
Fwd EY4.19%
FCF(TTM)10.64
FCFY4.22%
OCF(TTM)11.27
OCFY4.47%
SpS34.25
BVpS37.82
TBVpS15.46
PEG (NY)1.16
PEG (5Y)1.72
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 | 13.78 |
F-Score8
WACC8.89%
ROIC/WACC2.22
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)25.24%
EPS 3Y13.19%
EPS 5Y16.19%
EPS Q2Q%11.27%
EPS Next Y24%
EPS Next 2Y16.99%
EPS Next 3Y14.53%
EPS Next 5Y12.55%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.59%
Revenue growth 5Y12.44%
Sales Q2Q%7.92%
Revenue Next Year9.42%
Revenue Next 2Y8.59%
Revenue Next 3Y8.11%
Revenue Next 5Y8.51%
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%