RESMED INC (RMD) Stock Fundamental Analysis
NYSE:RMD - US7611521078 - Common Stock
293.73 USD
+5.39 (+1.87%)
293.73 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to RMD. 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. RMD also has an excellent dividend rating. These ratings could make RMD a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
In the past year RMD was profitable.
RMD had a positive operating cash flow in the past year.
RMD had positive earnings in each of the past 5 years.
RMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RMD has a better Return On Assets (17.14%) than 97.33% of its industry peers.
RMD's Return On Equity of 23.47% is amongst the best of the industry. RMD outperforms 96.26% of its industry peers.
RMD has a Return On Invested Capital of 19.35%. This is amongst the best in the industry. RMD outperforms 97.86% 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 8.18%.
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
Looking at the Profit Margin, with a value of 27.22%, RMD belongs to the top of the industry, outperforming 95.19% of the companies in the same industry.
In the last couple of years the Profit Margin of RMD has grown nicely.
Looking at the Operating Margin, with a value of 32.76%, 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.
With a Gross Margin value of 59.33%, RMD perfoms like the industry average, outperforming 57.75% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMD is creating value.
The number of shares outstanding for RMD has been reduced compared to 1 year ago.
RMD has more shares outstanding than it did 5 years ago.
RMD has a better debt/assets ratio than last year.
2.2 Solvency
RMD has an Altman-Z score of 14.21. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.21, RMD belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
RMD has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
RMD has a better Debt to FCF ratio (0.40) than 93.58% 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 Debt to Equity ratio value of 0.11, RMD perfoms like the industry average, outperforming 59.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 14.21 |
ROIC/WACC2.2
WACC8.81%
2.3 Liquidity
A Current Ratio of 3.44 indicates that RMD has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.44, RMD is doing good in the industry, outperforming 62.57% of the companies in the same industry.
RMD has a Quick Ratio of 2.53. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
RMD has a Quick ratio of 2.53. This is comparable to the rest of the industry: RMD outperforms 59.36% 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.
Measured over the past years, RMD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.94% on average per year.
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.
RMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.18% yearly.
EPS Next Y10.78%
EPS Next 2Y10.13%
EPS Next 3Y10.99%
EPS Next 5Y10.39%
Revenue Next Year8.15%
Revenue Next 2Y7.66%
Revenue Next 3Y7.91%
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.
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
With a Price/Earnings ratio of 30.76, RMD can be considered very expensive at the moment.
73.26% of the companies in the same industry are more expensive than RMD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RMD to the average of the S&P500 Index (27.24), we can say RMD is valued inline with the index average.
The Price/Forward Earnings ratio is 27.76, which means the current valuation is very expensive for RMD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 73.26% of the companies listed in the same industry.
RMD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.76 | ||
| Fwd PE | 27.76 |
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 73.26% of the companies listed in the same industry.
83.42% of the companies in the same industry are more expensive than RMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.09 | ||
| EV/EBITDA | 21.72 |
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.
RMD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)2.06
EPS Next 2Y10.13%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 1.75, RMD pays a better dividend. On top of this RMD pays more dividend than 91.98% of the companies listed in the same industry.
With a Dividend Yield of 0.83, RMD pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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 2Y10.13%
EPS Next 3Y10.99%
293.73
+5.39 (+1.87%)
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-2.51%
Ins Owners0.65%
Ins Owner Change-1.43%
Market Cap43.01B
Analysts75.65
Price Target295.22 (0.51%)
Short Float %6.2%
Short Ratio9.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)10.2%
PT rev (3m)10.2%
EPS NQ rev (1m)2.59%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.76 | ||
| Fwd PE | 27.76 | ||
| P/S | 8.37 | ||
| P/FCF | 26.09 | ||
| P/OCF | 24.59 | ||
| P/B | 7.22 | ||
| P/tB | 17.53 | ||
| EV/EBITDA | 21.72 |
EPS(TTM)9.55
EY3.25%
EPS(NY)10.58
Fwd EY3.6%
FCF(TTM)11.26
FCFY3.83%
OCF(TTM)11.95
OCFY4.07%
SpS35.1
BVpS40.7
TBVpS16.75
PEG (NY)2.85
PEG (5Y)2.06
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 | 14.21 |
F-Score8
WACC8.81%
ROIC/WACC2.2
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 Y10.78%
EPS Next 2Y10.13%
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 Year8.15%
Revenue Next 2Y7.66%
Revenue Next 3Y7.91%
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%