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ResMed

ASX:RMD
Snowflake Description

Proven track record with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RMD
ASX
$15B
Market Cap
  1. Home
  2. AU
  3. Healthcare
Company description

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. The last earnings update was 84 days ago. More info.


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RMD Share Price and Events
7 Day Returns
7.1%
ASX:RMD
2.3%
AU Medical Equipment
1.8%
AU Market
1 Year Returns
12.5%
ASX:RMD
-1.1%
AU Medical Equipment
6%
AU Market
RMD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ResMed (RMD) 7.1% 1.7% 0.7% 12.5% 95.3% 171.3%
AU Medical Equipment 2.3% 4% -0.1% -1.1% 44.3% 109.3%
AU Market 1.8% 3.9% 7.8% 6% 20.5% 8.4%
1 Year Return vs Industry and Market
  • RMD outperformed the Medical Equipment industry which returned -1.1% over the past year.
  • RMD outperformed the Market in Australia which returned 6% over the past year.
Price Volatility
RMD
Industry
5yr Volatility vs Market

Value

 Is ResMed undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ResMed to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ResMed.

ASX:RMD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:RMD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.933 (1 + (1- 21%) (8.17%))
0.995
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.995 * 5.96%)
8.24%

Discounted Cash Flow Calculation for ASX:RMD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ResMed is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:RMD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.24%)
2019 339.50 Analyst x2 313.64
2020 537.67 Analyst x3 458.88
2021 607.50 Analyst x2 479.00
2022 647.76 Analyst x1 471.84
2023 681.36 Est @ 5.19% 458.51
2024 710.82 Est @ 4.32% 441.91
2025 737.27 Est @ 3.72% 423.44
2026 761.59 Est @ 3.3% 404.09
2027 784.45 Est @ 3% 384.52
2028 806.38 Est @ 2.8% 365.17
Present value of next 10 years cash flows $4,201.01
ASX:RMD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $806.38 × (1 + 2.31%) ÷ (8.24% – 2.31%)
$13,907.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,907.46 ÷ (1 + 8.24%)10
$6,297.98
ASX:RMD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,201.01 + $6,297.98
$10,498.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $10,498.99 / 143.30
$73.27
ASX:RMD Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in ASX:RMD represents 0.14249x of NYSE:RMD
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.14249x
Value per Share
(Listing Adjusted, AUD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 73.27 x 0.14249
A$10.44
Value per share (AUD) From above. A$10.44
Current discount Discount to share price of A$14.57
= -1 x (A$14.57 - A$10.44) / A$10.44
-39.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of ResMed is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ResMed's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ResMed's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RMD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.15
NYSE:RMD Share Price ** NYSE (2019-04-26) in USD $102.25
Australia Medical Equipment Industry PE Ratio Median Figure of 8 Publicly-Listed Medical Equipment Companies 34.76x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ResMed.

ASX:RMD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RMD Share Price ÷ EPS (both in USD)

= 102.25 ÷ 3.15

32.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ResMed is good value based on earnings compared to the AU Medical Equipment industry average.
  • ResMed is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does ResMed's expected growth come at a high price?
Raw Data
ASX:RMD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
10.4%per year
Oceania Medical Equipment Industry PEG Ratio Median Figure of 5 Publicly-Listed Medical Equipment Companies 2.67x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

ASX:RMD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.45x ÷ 10.4%

3.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ResMed is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ResMed's assets?
Raw Data
ASX:RMD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.65
NYSE:RMD Share Price * NYSE (2019-04-26) in USD $102.25
Australia Medical Equipment Industry PB Ratio Median Figure of 30 Publicly-Listed Medical Equipment Companies 2.77x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.67x
ASX:RMD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RMD Share Price ÷ Book Value per Share (both in USD)

= 102.25 ÷ 13.65

7.49x

* Primary Listing of ResMed.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ResMed is overvalued based on assets compared to the AU Medical Equipment industry average.
X
Value checks
We assess ResMed's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. ResMed has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ResMed expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ResMed expected to grow at an attractive rate?
  • ResMed's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • ResMed's earnings growth is expected to exceed the Australia market average.
  • ResMed's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RMD Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RMD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 10.4%
ASX:RMD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 8.3%
Australia Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
Australia Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 8.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:RMD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RMD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 3,544 710 1
2022-06-30 3,378 636 3
2021-06-30 3,092 721 587 13
2020-06-30 2,870 650 507 17
2019-06-30 2,602 472 470 17
ASX:RMD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,455 456 450
2018-09-30 2,405 459 335
2018-06-30 2,340 505 316
2018-03-31 2,273 516 307
2017-12-31 2,196 434 285
2017-09-30 2,125 422 352
2017-06-30 2,067 414 342
2017-03-31 2,029 417 324
2016-12-31 1,968 474 327
2016-09-30 1,893 510 346
2016-06-30 1,839 548 352
2016-03-31 1,773 505 357

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ResMed's earnings are expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
  • ResMed's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:RMD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from ResMed Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RMD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 5.23 5.23 5.23 1.00
2022-06-30 4.43 4.75 4.11 2.00
2021-06-30 3.97 4.38 3.59 5.00
2020-06-30 3.43 3.73 3.15 7.00
2019-06-30 3.17 3.46 3.02 7.00
ASX:RMD Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.15
2018-09-30 2.35
2018-06-30 2.21
2018-03-31 2.16
2017-12-31 2.01
2017-09-30 2.49
2017-06-30 2.42
2017-03-31 2.30
2016-12-31 2.32
2016-09-30 2.46
2016-06-30 2.51
2016-03-31 2.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ResMed is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ResMed's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ResMed has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ResMed performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ResMed's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ResMed's year on year earnings growth rate has been positive over the past 5 years.
  • ResMed's 1-year earnings growth exceeds its 5-year average (58% vs 0.2%)
  • ResMed's earnings growth has not exceeded the AU Medical Equipment industry average in the past year (58% vs 62.3%).
Earnings and Revenue History
ResMed's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ResMed Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RMD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,454.64 450.31 613.58 158.99
2018-09-30 2,404.82 335.20 603.82 156.53
2018-06-30 2,340.20 315.59 600.37 155.15
2018-03-31 2,273.25 307.39 591.50 152.20
2017-12-31 2,195.82 285.09 581.48 149.89
2017-09-30 2,124.95 352.30 568.97 147.44
2017-06-30 2,066.74 342.28 553.97 144.47
2017-03-31 2,028.70 323.80 532.47 142.14
2016-12-31 1,968.37 326.77 517.50 135.13
2016-09-30 1,892.52 345.60 496.41 125.91
2016-06-30 1,838.71 352.41 488.06 118.65
2016-03-31 1,773.13 356.75 481.46 112.79
2015-12-31 1,741.75 356.94 474.90 111.71
2015-09-30 1,710.16 352.54 479.20 112.03
2015-06-30 1,678.91 352.89 478.63 114.87
2015-03-31 1,641.06 353.16 477.90 118.14
2014-12-31 1,616.32 352.15 473.23 120.64
2014-09-30 1,577.71 347.60 465.89 120.89
2014-06-30 1,554.97 345.27 450.41 118.23
2014-03-31 1,554.37 330.55 443.23 117.82
2013-12-31 1,540.19 325.49 441.19 119.48
2013-09-30 1,532.39 316.80 433.82 120.27
2013-06-30 1,514.46 307.13 430.80 120.12
2013-03-31 1,471.78 310.97 421.65 116.65
2012-12-31 1,437.27 290.67 413.98 113.86
2012-09-30 1,393.47 275.60 406.72 110.75
2012-06-30 1,368.52 254.85 402.62 109.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ResMed has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • ResMed used its assets more efficiently than the AU Medical Equipment industry average last year based on Return on Assets.
  • ResMed's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ResMed's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ResMed has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ResMed's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ResMed's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ResMed is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ResMed's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ResMed's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ResMed Company Filings, last reported 3 months ago.

ASX:RMD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,956.04 1,197.48 149.47
2018-09-30 1,900.26 529.61 230.19
2018-06-30 2,058.98 281.45 188.70
2018-03-31 2,066.96 810.00 704.28
2017-12-31 2,019.53 1,019.13 858.90
2017-09-30 2,049.53 1,018.87 811.10
2017-06-30 1,960.27 1,078.61 821.94
2017-03-31 1,854.96 1,168.92 827.31
2016-12-31 1,710.15 1,169.10 788.15
2016-09-30 1,772.57 1,173.14 781.66
2016-06-30 1,694.83 1,172.77 731.43
2016-03-31 1,673.41 435.61 718.50
2015-12-31 1,524.27 401.58 658.80
2015-09-30 1,460.81 500.59 822.05
2015-06-30 1,587.31 300.59 717.25
2015-03-31 1,536.28 460.58 866.33
2014-12-31 1,588.45 449.66 880.70
2014-09-30 1,653.21 375.70 881.69
2014-06-30 1,758.25 300.79 905.73
2014-03-31 1,690.91 395.80 938.56
2013-12-31 1,638.95 435.81 972.68
2013-09-30 1,692.54 360.81 976.57
2013-06-30 1,610.52 300.79 876.05
2013-03-31 1,768.16 340.82 1,012.70
2012-12-31 1,751.51 300.85 958.28
2012-09-30 1,698.92 265.84 890.63
2012-06-30 1,607.63 250.84 809.54
  • ResMed's level of debt (61.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.6% vs 61.2% today).
  • Debt is well covered by operating cash flow (38.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 38.4x coverage).
X
Financial health checks
We assess ResMed's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ResMed has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ResMed's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.45%
Current annual income from ResMed dividends. Estimated to be 1.62% next year.
If you bought A$2,000 of ResMed shares you are expected to receive A$29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ResMed's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • ResMed's dividend is below the markets top 25% of dividend payers in Australia (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:RMD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Oceania Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:RMD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 2.23 1.00
2022-06-30 2.02 1.00
2021-06-30 1.73 5.00
2020-06-30 1.60 6.00
2019-06-30 1.51 6.00
ASX:RMD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-24 1.480 1.479
2018-11-09 1.480 1.343
2018-08-02 1.480 1.366
2018-04-26 1.400 1.345
2018-01-24 1.400 1.448
2018-01-22 1.400 1.464
2017-10-26 1.400 1.643
2017-08-04 1.400 1.826
2017-08-01 1.400 1.877
2017-04-27 1.320 1.793
2017-01-23 1.320 1.876
2016-10-25 1.320 2.168
2016-09-13 1.320 2.056
2016-04-29 1.200 1.907
2016-04-26 1.200 2.090
2016-01-28 1.200 2.064
2016-01-21 1.200 2.100
2015-11-23 1.200 2.179
2015-08-07 1.200 2.217
2015-07-30 1.200 2.151
2015-04-23 1.120 1.907
2015-01-30 1.120 1.636
2015-01-22 1.120 1.750
2014-10-31 1.120 2.041
2014-10-23 1.120 2.181
2014-08-08 1.120 2.211
2014-07-31 1.120 2.236
2014-04-24 1.000 1.980
2014-01-23 1.000 2.233
2013-10-24 1.000 2.068
2013-08-21 1.000 1.906
2013-08-13 1.000 2.036
2013-08-01 1.000 2.052
2013-04-25 0.680 1.443
2013-02-21 0.680 1.522
2012-10-25 0.680 1.607
2012-08-02 0.680 1.759

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ResMed is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • ResMed is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of ResMed's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of ResMed's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess ResMed's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ResMed afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ResMed has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ResMed's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mick Farrell
COMPENSATION $9,082,204
AGE 46
TENURE AS CEO 6.1 years
CEO Bio

Mr. Michael J. Farrell, also known as Mick, BE, SM, MBA has been the Chief Executive Officer of ResMed Inc. since March 1, 2013. Mr. Farrell served as President of Americas Operations at ResMed Inc. since May 2011 to 2013. He was previously Senior Vice President of the global business unit for sleep apnea therapeutic and diagnostic devices from 2007 to 2011, and before that he held various senior roles in marketing and business development. Mr. Farrell served as Senior Vice President of Strategic Business Unit - Patient Interfaces at ResMed Inc., since July 2007. He served as Vice President, Marketing for the Americas at ResMed from June 2005 to 2007, he was Vice President of Business Development, leading acquisitions and strategic alliances as well as the establishment of a new market development team. Mr. Farrell joined ResMed in September 2000 and he worked in management consulting and biotechnology, as well as in chemicals and steel manufacturing at Arthur D. Little, Genzyme Corporation, The Dow Chemical Company, Vale and BHP Billiton. He is a Director of AdvaMed. He has been a Director of ResMed Inc. since March 1, 2013. He has been an Independent Director of Zimmer Biomet Holdings, Inc. since December 11, 2014. Mr. Farrell holds a Bachelor of Engineering, with first-class honors, from the University of New South Wales, a Master of Science in Chemical Engineering from the Massachusetts Institute of Technology and an M.B.A. from the MIT Sloan School of Management.

CEO Compensation
  • Mick's compensation has been consistent with company performance over the past year.
  • Mick's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the ResMed management team in years:

5.3
Average Tenure
55
Average Age
  • The average tenure for the ResMed management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mick Farrell

TITLE
CEO & Director
COMPENSATION
$9M
AGE
46
TENURE
6.1 yrs

Rob Douglas

TITLE
President & COO
COMPENSATION
$6M
AGE
58
TENURE
6.1 yrs

Brett Sandercock

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
51
TENURE
13.3 yrs

David Pendarvis

TITLE
Chief Administrative Officer
COMPENSATION
$3M
AGE
59
TENURE
7.9 yrs

Jim Hollingshead

TITLE
President of Sleep Business
COMPENSATION
$3M
AGE
55
TENURE
1.8 yrs

Bobby Ghoshal

TITLE
Chief Technology Officer
TENURE
1 yrs

Connie Bienfait

TITLE
Director of Investor Relations

Amy Wakeham

TITLE
Vice President of Investor Relations & Corporate Communications

Nupur Bhushan

TITLE
Chief People Officer
TENURE
1.8 yrs

Geoff Neilson

TITLE
Senior Vice President of Global Supplier Alliance
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the ResMed board of directors in years:

5.6
Average Tenure
64
Average Age
  • The tenure for the ResMed board of directors is about average.
Board of Directors

Peter Farrell

TITLE
Founder & Non-Executive Chairman
COMPENSATION
$769K
AGE
76
TENURE
5.3 yrs

Mick Farrell

TITLE
CEO & Director
COMPENSATION
$9M
AGE
46
TENURE
6.1 yrs

Ron Taylor

TITLE
Lead Independent Director
COMPENSATION
$345K
AGE
70
TENURE
5.8 yrs

Rich Sulpizio

TITLE
Director
COMPENSATION
$330K
AGE
68
TENURE
13.7 yrs

Carol Burt

TITLE
Director
COMPENSATION
$323K
AGE
60
TENURE
5.4 yrs

Jack Wareham

TITLE
Director
COMPENSATION
$322K
AGE
77
TENURE
14.3 yrs

Karen Drexler

TITLE
Director
COMPENSATION
$291K
AGE
58
TENURE
1.4 yrs

Harjit Gill

TITLE
Director
AGE
53
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess ResMed's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ResMed has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides humidifiers, carry bags, and breathing circuits; data communications and control products, such as AirView Diagnostics, EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules; U-Sleep, which enables automated patient coaching through a text, email, or interactive voice phone call; and myAir, a patient engagement application that provides sleep data and a daily score based on their previous night’s data, as well as offers business management software and services to medical equipment and home health providers. It markets its products to sleep clinics, home healthcare dealers, patients, hospitals, physicians, and third-party payers through a network of distributors and direct sales force in approximately 120 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

Details
Name: ResMed Inc.
RMD
Exchange: ASX
Founded: 1989
$20,903,150,817
143,300,009
Website: http://www.resmed.com
Address: ResMed Inc.
9001 Spectrum Center Boulevard,
San Diego,
California, 92123,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RMD Common Stock New York Stock Exchange US USD 02. Jun 1995
DB RME Common Stock Deutsche Boerse AG DE EUR 02. Jun 1995
LSE 0KW4 Common Stock London Stock Exchange GB USD 02. Jun 1995
ASX RMD CDI COM USD0.004 (10CDI/1SHS) Australian Securities Exchange AU AUD 26. Nov 1999
OTCPK RSMD.F CDI COM USD0.004 (10CDI/1SHS) Pink Sheets LLC US USD 26. Nov 1999
DB RMEA CDI COM USD0.004 (10CDI/1SHS) Deutsche Boerse AG DE EUR 26. Nov 1999
CHIA RMD CDI COM USD0.004 (10CDI/1SHS) Chi-X Australia AU AUD 26. Nov 1999
Number of employees
Current staff
Staff numbers
5,940
ResMed employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/26 10:31
End of day share price update: 2019/04/26 00:00
Last estimates confirmation: 2019/04/26
Last earnings filing: 2019/02/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.