company background image
RMD

ResMed NYSE:RMD Stock Report

Last Price

US$218.46

Market Cap

US$32.0b

7D

2.2%

1Y

-17.1%

Updated

29 Sep, 2022

Data

Company Financials +
RMD fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance6/6
Financial Health6/6
Dividends0/6

RMD Stock Overview

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets.

ResMed Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ResMed
Historical stock prices
Current Share PriceUS$218.46
52 Week HighUS$275.66
52 Week LowUS$189.40
Beta0.50
1 Month Change-0.45%
3 Month Change1.27%
1 Year Change-17.11%
3 Year Change67.67%
5 Year Change182.61%
Change since IPO32,414.98%

Recent News & Updates

Sep 28
Here's Why We Think ResMed (NYSE:RMD) Is Well Worth Watching

Here's Why We Think ResMed (NYSE:RMD) Is Well Worth Watching

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Aug 29

ResMed: Further Downside Is Warranted

Summary ResMed has done well to grow its top and bottom lines recently, but this doesn't make the company a great investment prospect. Shares look very pricey at this point in time and should warrant further downside moving forward. This is the case even with current catalysts being factored into the equation. Unfortunately, buying into a great company does not always equate to buying into a company that's going to generate a strong return. If life were that easy, everybody could win in the stock market. One company that has strong operational performance and that will likely have a bright future ahead for it is ResMed (RMD). Over the past several years, ResMed which focuses on providing digital health and cloud-connected medical devices associated with sleep and respiratory care, as well as SaaS (Software as a Service) functionality, has performed exceptionally well. Having said that, shares the business do look drastically overpriced at this time. This may not seem the case when looking at it relative to some similar companies. But at the end of the day, buying into the business is a truly speculative bet on whether long-term growth will be strong enough to justify current pricing. Mixed results Back in early March of this year, I wrote a bearish article about ResMed. In that article, I readily acknowledged that the company was a fantastic one. I lauded the company's track record for sales, profit, and cash flow growth. I also said that, in the long run, it would likely continue to fare well for its investors. But I couldn't get over just how pricey shares were, even though they looked fairly valued compared to similar businesses. At the end of the day, I ended up rating the business a 'sell', reflecting my belief that it would likely underperform the broader market for the foreseeable future. So far, the company has done just that. While the S&P 500 is down by 7.8% since the time of my article's publication, shares of ResMed have delivered a loss of 11.4%. Author - SEC EDGAR Data Some of this decline is certainly due to the fact that shares were expensive. But another contributor is likely related to the fact that some of its performance figures have not been particularly appealing. First, however, we should touch on sales. This was a bright spot for the company recently. For the 2022 fiscal year as a whole, revenue came in at $3.58 billion. That represents an increase of 11.9% over the $3.20 billion generated in 2021. It's also the highest that revenue has ever been for the enterprise. The strongest growth for the company came from the Devices sales that it generated in the US, Canada, and Latin America. Sales growth here was a robust 24% year over year. And for the region as a whole, revenue growth was 15%. By comparison, revenue growth across Europe, Asia, and other select markets was a more modest 7%. The growth that the company experienced here at home came even though the company faced some pain associated with foreign currency fluctuations. In its Sleep and Respiratory Care business, for instance, international currencies hit revenue to the tune of $43 million in 2022. But this was more than offset by an increase in unit sales for its devices and masks. This rise in revenue brought with it positive earnings results. In 2022 as a whole, net income came in at $779.4 million. That dwarfs the $474.5 million generated in 2021. And it's also well above the $621.7 million the company reported in 2020. This is not to say that everything went well. Operating cash flow for the company did decline, dropping from $736.7 million in 2021 to $351.1 million in 2022. But if we adjust for changes in working capital, this metric would have risen from $735.3 million to $1.06 billion. Meanwhile, EBITDA for the company was also on the rise, climbing from $1.03 billion to $1.12 billion. Author - SEC EDGAR Data At present, we don't really know what to expect for the 2023 fiscal year. But management did say in their annual report that current supply chain issues are expected to impact the company throughout at least part of its 2023 fiscal year. Regardless of what that will end up looking like, shares do look rather pricey if we rely on 2022's figures. The price-to-earnings multiple of the company, for instance, comes in at 41.5. That's down from the 68.2 reading we get using 2021's results. The price to adjusted operating cash flow multiple stands at 30.6. If we were to use results from 2021, this multiple would be 44. Meanwhile, the EV to EBITDA multiple comes out to 29.3. Using last year's figures, this multiple would have been 32. As part of my analysis, I did compare the company to five similar firms. On a price-to-earnings basis, the four companies with positive results traded with multiples of between 28.6 and 201.8. Our prospect was cheaper than all but one of the firms. Using the price to operating cash flow approach, the range for the five firms was between 13.5 and 55.6, while for the EV to EBITDA approach, the range was between 11.6 and 87.2. In both of these cases, three of the five companies were cheaper than our prospect. Company Price / Earnings Price / Operating Cash Flow EV / EBITDA ResMed 41.5 30.6 29.3 DexCom (DXCM) 201.8 55.6 87.2 Baxter International (BAX) 28.6 15.6 13.6 Koninklijke Philips (PHG) N/A 13.5 15.8 IDEXX Laboratories (IDXX) 45.3 50.4 31.7 Zimmer Biomet Holdings (ZBH) 77.9 14.9 11.6

Aug 23
Estimating The Intrinsic Value Of ResMed Inc. (NYSE:RMD)

Estimating The Intrinsic Value Of ResMed Inc. (NYSE:RMD)

In this article we are going to estimate the intrinsic value of ResMed Inc. ( NYSE:RMD ) by taking the forecast future...

Shareholder Returns

RMDUS Medical EquipmentUS Market
7D2.2%-1.1%-3.1%
1Y-17.1%-29.9%-21.5%

Return vs Industry: RMD exceeded the US Medical Equipment industry which returned -30.1% over the past year.

Return vs Market: RMD exceeded the US Market which returned -20.3% over the past year.

Price Volatility

Is RMD's price volatile compared to industry and market?
RMD volatility
RMD Average Weekly Movement3.7%
Medical Equipment Industry Average Movement8.6%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: RMD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RMD's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19898,160Mick Farrellhttps://www.resmed.com

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. 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, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.

ResMed Fundamentals Summary

How do ResMed's earnings and revenue compare to its market cap?
RMD fundamental statistics
Market CapUS$31.99b
Earnings (TTM)US$779.44m
Revenue (TTM)US$3.58b

41.0x

P/E Ratio

8.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMD income statement (TTM)
RevenueUS$3.58b
Cost of RevenueUS$1.51b
Gross ProfitUS$2.06b
Other ExpensesUS$1.28b
EarningsUS$779.44m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.32
Gross Margin57.68%
Net Profit Margin21.78%
Debt/Equity Ratio23.1%

How did RMD perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RMD?

Other financial metrics that can be useful for relative valuation.

RMD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.1x
Enterprise Value/EBITDA29x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does RMD's PE Ratio compare to its peers?

RMD PE Ratio vs Peers
The above table shows the PE ratio for RMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average74.2x
BAX Baxter International
27.5x19.1%US$27.8b
IDXX IDEXX Laboratories
41.6x12.5%US$27.6b
DXCM DexCom
191.9x27.5%US$32.2b
EW Edwards Lifesciences
35.7x9.9%US$52.0b
RMD ResMed
41x12.0%US$32.0b

Price-To-Earnings vs Peers: RMD is good value based on its Price-To-Earnings Ratio (41x) compared to the peer average (74.2x).


Price to Earnings Ratio vs Industry

How does RMD's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Earnings vs Industry: RMD is expensive based on its Price-To-Earnings Ratio (41x) compared to the US Medical Equipment industry average (32.1x)


Price to Earnings Ratio vs Fair Ratio

What is RMD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41x
Fair PE Ratio34.4x

Price-To-Earnings vs Fair Ratio: RMD is expensive based on its Price-To-Earnings Ratio (41x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).


Share Price vs Fair Value

What is the Fair Price of RMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RMD ($218.46) is trading below our estimate of fair value ($249.3)

Significantly Below Fair Value: RMD is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is ResMed forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMD's forecast earnings growth (12% per year) is above the savings rate (1.9%).

Earnings vs Market: RMD's earnings (12% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: RMD's earnings are forecast to grow, but not significantly.

Revenue vs Market: RMD's revenue (8.1% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: RMD's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMD's Return on Equity is forecast to be high in 3 years time (23.6%)


Discover growth companies

Past Performance

How has ResMed performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RMD has high quality earnings.

Growing Profit Margin: RMD's current net profit margins (21.8%) are higher than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: RMD's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: RMD's earnings growth over the past year (64.3%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: RMD earnings growth over the past year (64.3%) exceeded the Medical Equipment industry 0.6%.


Return on Equity

High ROE: RMD's Return on Equity (23.2%) is considered high.


Discover strong past performing companies

Financial Health

How is ResMed's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RMD's short term assets ($1.9B) exceed its short term liabilities ($689.3M).

Long Term Liabilities: RMD's short term assets ($1.9B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: RMD's net debt to equity ratio (14.9%) is considered satisfactory.

Reducing Debt: RMD's debt to equity ratio has reduced from 54.6% to 23.1% over the past 5 years.

Debt Coverage: RMD's debt is well covered by operating cash flow (45.3%).

Interest Coverage: RMD's interest payments on its debt are well covered by EBIT (44.8x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.80%

Current Dividend Yield

Dividend Yield vs Market

ResMed Dividend Yield vs Market
How does ResMed dividend yield compare to the market?
SegmentDividend Yield
Company (ResMed)0.8%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Medical Equipment)1.9%
Analyst forecast in 3 Years (ResMed)1.0%

Notable Dividend: RMD's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: RMD's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (4.61%).


Stability and Growth of Payments

Stable Dividend: RMD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: RMD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: RMD is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: RMD is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Mick Farrell (50 yo)

9.5yrs

Tenure

US$10,389,315

Compensation

Mr. Michael J. Farrell, also known as Mick, BE, SM, MBA, serves as Member of Advisory Board at Green Sun Medical, LLC. He serves as the Chief Executive Officer of ResMed Pty Ltd. Mr. Farrell has been the C...


CEO Compensation Analysis

Mick Farrell's Compensation vs ResMed Earnings
How has Mick Farrell's remuneration changed compared to ResMed's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$779m

Mar 31 2022n/an/a

US$779m

Dec 31 2021n/an/a

US$522m

Sep 30 2021n/an/a

US$500m

Jun 30 2021US$10mUS$1m

US$475m

Mar 31 2021n/an/a

US$457m

Dec 31 2020n/an/a

US$699m

Sep 30 2020n/an/a

US$680m

Jun 30 2020US$10mUS$1m

US$622m

Mar 31 2020n/an/a

US$513m

Dec 31 2019n/an/a

US$455m

Sep 30 2019n/an/a

US$419m

Jun 30 2019US$10mUS$967k

US$405m

Mar 31 2019n/an/a

US$446m

Dec 31 2018n/an/a

US$450m

Sep 30 2018n/an/a

US$335m

Jun 30 2018US$9mUS$934k

US$316m

Mar 31 2018n/an/a

US$307m

Dec 31 2017n/an/a

US$285m

Sep 30 2017n/an/a

US$352m

Jun 30 2017US$8mUS$890k

US$342m

Mar 31 2017n/an/a

US$324m

Dec 31 2016n/an/a

US$327m

Sep 30 2016n/an/a

US$346m

Jun 30 2016US$7mUS$845k

US$352m

Compensation vs Market: Mick's total compensation ($USD10.39M) is about average for companies of similar size in the US market ($USD13.03M).

Compensation vs Earnings: Mick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RMD's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: RMD's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:RMD Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
22 Nov 21SellUS$390,000Carol BurtIndividual1,500US$260.00
15 Nov 21SellUS$321,440Carol BurtIndividual1,187US$270.80

Ownership Breakdown

What is the ownership structure of RMD?
Owner TypeNumber of SharesOwnership Percentage
State or Government63,1230.04%
Individual Insiders1,311,4370.9%
General Public37,280,77425.5%
Institutions107,777,82273.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 55.04% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.84%
The Vanguard Group, Inc.
17,336,212$3.8b0.05%0.08%
9.22%
BlackRock, Inc.
13,505,435$3.0b-0.26%0.07%
5.16%
FMR LLC
7,551,052$1.6b0.02%0.15%
4.57%
State Street Global Advisors, Inc.
6,692,684$1.5b0.15%0.08%
4.38%
WCM Investment Management, LLC
6,416,199$1.4b-25.51%3.2%
3.42%
Capital Research and Management Company
5,011,493$1.1b-0.34%0.08%
2.04%
Geode Capital Management, LLC
2,984,074$651.9m2.15%0.08%
1.93%
First Sentier Investors (Australia) IM Ltd
2,829,238$618.1m0%0.56%
1.38%
Northern Trust Global Investments
2,026,949$442.8m-6.72%0.09%
1.09%
Ownership Capital B.V.
1,602,034$350.0m3.74%6.1%
1.08%
abrdn plc
1,582,220$345.7m-0.03%0.16%
0.87%
Citadel Advisors LLC
1,280,595$279.8m0%0.43%
0.87%
BNY Mellon Asset Management
1,266,990$276.8m2.92%0.06%
0.82%
Invesco Ltd.
1,194,039$260.8m-12.37%0.09%
0.79%
Legal & General Investment Management Limited
1,157,528$252.9m2.01%0.08%
0.77%
Schroder Investment Management (Singapore) Ltd
1,132,443$247.4m0%0.66%
0.77%
Norges Bank Investment Management
1,127,698$246.4m0%0.03%
0.58%
T. Rowe Price Group, Inc.
849,749$185.6m-8.06%0.02%
0.58%
Amundi Asset Management
849,261$185.5m-0.05%0.06%
0.57%
UBS Asset Management
828,819$181.1m-1.98%0.03%
0.52%
Charles Schwab Investment Management, Inc.
765,828$167.3m1.52%0.04%
0.49%
J.P. Morgan Asset Management, Inc.
710,491$155.2m4.85%0.03%
0.45%
INTECH Investment Management LLC
663,946$145.0m-34.2%0.84%
0.43%
Swiss National Bank, Asset Management Arm
634,331$138.6m0.51%0.09%
0.41%
Eaton Vance Management
602,907$131.7m9.03%0.05%

Company Information

ResMed Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: ResMed Inc.
  • Ticker: RMD
  • Exchange: NYSE
  • Founded: 1989
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Implied Market Cap: US$31.990b
  • Shares outstanding: 146.43m
  • Website: https://www.resmed.com

Number of Employees


Location

  • ResMed Inc.
  • 9001 Spectrum Center Boulevard
  • San Diego
  • California
  • 92123
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMDNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1995
RMEDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1995
0KW4LSE (London Stock Exchange)YesCommon StockGBUSDJun 1995
RMDWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1995
RMD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1995
RMDASX (Australian Securities Exchange)CDI COM USD0.004 (10CDI/1SHS)AUAUDNov 1999
RSMD.FOTCPK (Pink Sheets LLC)CDI COM USD0.004 (10CDI/1SHS)USUSDNov 1999
RMEADB (Deutsche Boerse AG)CDI COM USD0.004 (10CDI/1SHS)DEEURNov 1999
RMDCHIA (Chi-X Australia)CDI COM USD0.004 (10CDI/1SHS)AUAUDNov 1999
R1MD34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.