RESMED INC (RMD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RMD - US7611521078 - Common Stock
255.04 USD
-0.76 (-0.3%)
255.91 USD
+0.87 (+0.34%)
RMD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. RMD gets an excellent profitability rating and is at the same time showing great financial health properties. RMD has a correct valuation and a medium growth rate. Finally 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
In the past year RMD was profitable.
In the past year RMD had a positive cash flow from operations.
In the past 5 years RMD has always 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 17.31% is amongst the best of the industry. RMD outperforms 97.34% of its industry peers.
The Return On Equity of RMD (23.49%) is better than 95.74% of its industry peers.
RMD has a better Return On Invested Capital (20.50%) than 97.87% 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 8.71%.
The last Return On Invested Capital (20.50%) for RMD is above the 3 year average (18.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 23.49% | ||
| ROIC | 20.5% |
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 27.35%, RMD belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
RMD's Profit Margin has improved in the last couple of years.
The Operating Margin of RMD (33.49%) is better than 99.47% of its industry peers.
In the last couple of years the Operating Margin of RMD has grown nicely.
With a Gross Margin value of 60.05%, RMD perfoms like the industry average, outperforming 57.98% of the companies in the same industry.
RMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.49% | ||
| PM (TTM) | 27.35% | ||
| GM | 60.05% |
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
The number of shares outstanding for RMD has been increased compared to 5 years ago.
The debt/assets ratio for RMD has been reduced compared to a year ago.
2.2 Solvency
RMD has an Altman-Z score of 12.95. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
RMD's Altman-Z score of 12.95 is amongst the best of the industry. RMD outperforms 90.43% of its industry peers.
RMD has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.38, RMD belongs to the best of the industry, outperforming 92.02% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that RMD is not too dependend on debt financing.
The Debt to Equity ratio of RMD (0.07) is better than 67.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 12.95 |
ROIC/WACC2.4
WACC8.54%
2.3 Liquidity
RMD has a Current Ratio of 2.89. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RMD (2.89) is comparable to the rest of the industry.
A Quick Ratio of 2.13 indicates that RMD has no problem at all paying its short term obligations.
RMD has a Quick ratio (2.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
RMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.42%, which is quite good.
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 9.36% 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)19.42%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.91%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
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 8.22% on average over the next years. This is quite good.
EPS Next Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
Revenue Next 5Y8.22%
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 25.76, which means the current valuation is very expensive for RMD.
Compared to the rest of the industry, the Price/Earnings ratio of RMD indicates a somewhat cheap valuation: RMD is cheaper than 77.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, RMD is valued at the same level.
A Price/Forward Earnings ratio of 21.08 indicates a rather expensive 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 79.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, RMD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 21.08 |
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 78.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RMD is valued cheaper than 85.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.19 | ||
| EV/EBITDA | 18.69 |
4.3 Compensation for Growth
RMD's 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.
PEG (NY)1.73
PEG (5Y)1.72
EPS Next 2Y12.56%
EPS Next 3Y11.21%
5. Dividend
5.1 Amount
RMD has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 1.73, RMD pays a better dividend. On top of this RMD pays more dividend than 94.68% of the companies listed in the same industry.
With a Dividend Yield of 0.98, RMD pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 22.31% 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.
DP22.31%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
255.04
-0.76 (-0.3%)
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 Change0.33%
Ins Owners0.48%
Ins Owner Change0.62%
Market Cap37.22B
Revenue(TTM)5.26B
Net Income(TTM)1.44B
Analysts75.2
Price Target299.44 (17.41%)
Short Float %6.68%
Short Ratio9.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend2.12
Dividend Growth(5Y)6.33%
DP22.31%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.38%
Min EPS beat(2)1.02%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-0.57%
Max EPS beat(4)3.93%
EPS beat(8)6
Avg EPS beat(8)3.32%
EPS beat(12)9
Avg EPS beat(12)2.26%
EPS beat(16)10
Avg EPS beat(16)0.94%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.75%
Revenue beat(8)5
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)1.43%
PT rev (3m)1.43%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 21.08 | ||
| P/S | 7.08 | ||
| P/FCF | 21.19 | ||
| P/OCF | 19.76 | ||
| P/B | 6.08 | ||
| P/tB | 14.15 | ||
| EV/EBITDA | 18.69 |
EPS(TTM)9.9
EY3.88%
EPS(NY)12.1
Fwd EY4.74%
FCF(TTM)12.04
FCFY4.72%
OCF(TTM)12.91
OCFY5.06%
SpS36.02
BVpS41.94
TBVpS18.02
PEG (NY)1.73
PEG (5Y)1.72
Graham Number96.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 23.49% | ||
| ROCE | 24.97% | ||
| ROIC | 20.5% | ||
| ROICexc | 25.5% | ||
| ROICexgc | 66.39% | ||
| OM | 33.49% | ||
| PM (TTM) | 27.35% | ||
| GM | 60.05% | ||
| FCFM | 33.41% |
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%
ROICexgc growth 3Y8.61%
ROICexgc 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-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 65.89% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 63.08 | ||
| Cash Conversion | 96.42% | ||
| Profit Quality | 122.16% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | 12.95 |
F-Score7
WACC8.54%
ROIC/WACC2.4
Cap/Depr(3y)65.59%
Cap/Depr(5y)70.36%
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)19.42%
EPS 3Y18.15%
EPS 5Y14.94%
EPS Q2Q%15.91%
EPS Next Y14.89%
EPS Next 2Y12.56%
EPS Next 3Y11.21%
EPS Next 5Y10.39%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y12.88%
Revenue growth 5Y11.72%
Sales Q2Q%9.07%
Revenue Next Year9.2%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
Revenue Next 5Y8.22%
EBIT growth 1Y18.79%
EBIT growth 3Y19.01%
EBIT growth 5Y15.82%
EBIT Next Year24.55%
EBIT Next 3Y13.86%
EBIT Next 5Y11.02%
FCF growth 1Y121.67%
FCF growth 3Y103.78%
FCF growth 5Y18.84%
OCF growth 1Y101.45%
OCF growth 3Y70.86%
OCF growth 5Y16.9%
RESMED INC / RMD FAQ
What is the ChartMill fundamental rating of RESMED INC (RMD) stock?
ChartMill assigns a fundamental rating of 7 / 10 to RMD.
What is the valuation status for RMD stock?
ChartMill assigns a valuation rating of 5 / 10 to RESMED INC (RMD). This can be considered as Fairly Valued.
What is the profitability of RMD stock?
RESMED INC (RMD) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for RMD stock?
The Price/Earnings (PE) ratio for RESMED INC (RMD) is 25.76 and the Price/Book (PB) ratio is 6.08.
Is the dividend of RESMED INC sustainable?
The dividend rating of RESMED INC (RMD) is 7 / 10 and the dividend payout ratio is 22.31%.