RESMED INC (RMD) Stock Fundamental Analysis
USA - NYSE:RMD - US7611521078 - Common Stock
273.593 USD
+0.99 (+0.36%)
We assign a fundamental rating of 8 out of 10 to RMD. RMD was compared to 191 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making RMD a very profitable company, without any liquidiy or solvency issues. RMD has a decent growth rate and is not valued too expensively. Finally 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.
In the past year RMD had a positive cash flow from operations.
In the past 5 years RMD has always been profitable.
RMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RMD (17.14%) is better than 97.38% of its industry peers.
RMD's Return On Equity of 23.47% is amongst the best of 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.
RMD had an Average Return On Invested Capital over the past 3 years of 18.06%. This is significantly above the industry average of 8.46%.
The last Return On Invested Capital (19.35%) for RMD is above the 3 year average (18.06%), which is a sign of increasing profitability.
| 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 has a better Operating Margin (32.76%) than 99.48% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
With a Gross Margin value of 59.33%, RMD perfoms like the industry average, outperforming 58.64% of the companies in the same 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.
RMD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RMD has more shares outstanding
Compared to 1 year ago, RMD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.57 indicates that RMD is not in any danger for bankruptcy at the moment.
RMD has a Altman-Z score of 13.57. This is amongst the best in the industry. RMD outperforms 93.72% 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 better Debt to FCF ratio (0.40) than 93.72% 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.
Looking at the Debt to Equity ratio, with a value of 0.11, RMD is in the better half of the industry, outperforming 62.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 13.57 |
ROIC/WACC2.25
WACC8.6%
2.3 Liquidity
RMD has a Current Ratio of 3.44. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RMD (3.44) is better than 63.87% of its industry peers.
A Quick Ratio of 2.53 indicates that RMD has no problem at all paying its short term obligations.
RMD's Quick ratio of 2.53 is fine compared to the rest of the industry. RMD outperforms 62.30% 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 impressive 23.54% 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.
The Revenue has grown by 9.84% in the past year. This is quite good.
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)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
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 Y14.94%
EPS Next 2Y12.26%
EPS Next 3Y10.99%
EPS Next 5Y10.39%
Revenue Next Year9.18%
Revenue Next 2Y8.23%
Revenue Next 3Y7.72%
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
RMD is valuated quite expensively with a Price/Earnings ratio of 28.65.
74.87% of the companies in the same industry are more expensive than RMD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. RMD is around the same levels.
Based on the Price/Forward Earnings ratio of 24.92, the valuation of RMD can be described as rather expensive.
74.35% of the companies in the same industry are more expensive than RMD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RMD to the average of the S&P500 Index (22.71), we can say RMD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 24.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMD is valued a bit cheaper than the industry average as 74.87% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaply inside the industry as 83.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.26 | ||
| EV/EBITDA | 20.49 |
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)1.92
PEG (5Y)1.92
EPS Next 2Y12.26%
EPS Next 3Y10.99%
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 1.69, RMD pays a better dividend. On top of this RMD pays more dividend than 92.67% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of RMD grows each year by 6.33%, which is quite nice.
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)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 2Y12.26%
EPS Next 3Y10.99%
NYSE:RMD (9/17/2025, 2:33:06 PM)
273.593
+0.99 (+0.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners65.06%
Inst Owner Change-2.5%
Ins Owners0.65%
Ins Owner Change0.58%
Market Cap40.06B
Analysts75.65
Price Target295.22 (7.9%)
Short Float %5.85%
Short Ratio8.3
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)0.8%
PT rev (3m)11.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)3.75%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 24.92 | ||
| P/S | 7.78 | ||
| P/FCF | 24.26 | ||
| P/OCF | 22.87 | ||
| P/B | 6.71 | ||
| P/tB | 16.31 | ||
| EV/EBITDA | 20.49 |
EPS(TTM)9.55
EY3.49%
EPS(NY)10.98
Fwd EY4.01%
FCF(TTM)11.28
FCFY4.12%
OCF(TTM)11.96
OCFY4.37%
SpS35.15
BVpS40.76
TBVpS16.78
PEG (NY)1.92
PEG (5Y)1.92
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 | 13.57 |
F-Score8
WACC8.6%
ROIC/WACC2.25
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 Y14.94%
EPS Next 2Y12.26%
EPS Next 3Y10.99%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%10.2%
Revenue Next Year9.18%
Revenue Next 2Y8.23%
Revenue Next 3Y7.72%
Revenue Next 5Y8.18%
EBIT growth 1Y21.8%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.96%
EBIT Next 3Y13.37%
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%