ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep apnea, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. More Details
Outstanding track record with excellent balance sheet.
Share Price & News
How has ResMed's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
7 Day Return
US Medical Equipment
1 Year Return
US Medical Equipment
Return vs Industry: RMD underperformed the US Medical Equipment industry which returned 38.6% over the past year.
Return vs Market: RMD underperformed the US Market which returned 55.3% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is ResMed's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StWhat You Need To Know About ResMed Inc.'s (NYSE:RMD) Investor Composition
3 weeks ago | Simply Wall StDoes ResMed (NYSE:RMD) Deserve A Spot On Your Watchlist?
1 month ago | Simply Wall StShareholders Of ResMed (NYSE:RMD) Must Be Happy With Their 229% Total Return
Is ResMed undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RMD ($199.16) is trading below our estimate of fair value ($216.64)
Significantly Below Fair Value: RMD is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: RMD is good value based on its PE Ratio (41.3x) compared to the US Medical Equipment industry average (50.2x).
PE vs Market: RMD is poor value based on its PE Ratio (41.3x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: RMD is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: RMD is overvalued based on its PB Ratio (10.1x) compared to the US Medical Equipment industry average (5x).
How is ResMed forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RMD's forecast earnings growth (11.7% per year) is above the savings rate (2%).
Earnings vs Market: RMD's earnings (11.7% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: RMD's earnings are forecast to grow, but not significantly.
Revenue vs Market: RMD's revenue (8.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: RMD's revenue (8.8% 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 (24.9%)
How has ResMed performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RMD has high quality earnings.
Growing Profit Margin: RMD's current net profit margins (22.6%) are higher than last year (16.4%).
Past Earnings Growth Analysis
Earnings Trend: RMD's earnings have grown by 14.8% per year over the past 5 years.
Accelerating Growth: RMD's earnings growth over the past year (53.4%) exceeds its 5-year average (14.8% per year).
Earnings vs Industry: RMD earnings growth over the past year (53.4%) exceeded the Medical Equipment industry 10.1%.
Return on Equity
High ROE: RMD's Return on Equity (24.4%) is considered high.
How is ResMed's financial position?
Financial Position Analysis
Short Term Liabilities: RMD's short term assets ($1.5B) exceed its short term liabilities ($577.3M).
Long Term Liabilities: RMD's short term assets ($1.5B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: RMD's debt to equity ratio (28.8%) is considered satisfactory.
Reducing Debt: RMD's debt to equity ratio has increased from 26.3% to 28.8% over the past 5 years.
Debt Coverage: RMD's debt is well covered by operating cash flow (107%).
Interest Coverage: RMD's interest payments on its debt are well covered by EBIT (28.6x coverage).
What is ResMed current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RMD's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: RMD's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RMD has been paying a dividend for less than 10 years.
Growing Dividend: RMD's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.3%), RMD's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RMD's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mick Farrell (48 yo)
Mr. Michael J. Farrell, also known as Mick, BE, SM, MBA, serves as the Chief Executive Officer of ResMed Pty Ltd. Mr. Farrell has been the Chief Executive Officer of ResMed Inc. since March 1, 2013. Mr. Fa...
CEO Compensation Analysis
Compensation vs Market: Mick's total compensation ($USD10.43M) is about average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Mick's compensation has been consistent with company performance over the past year.
Experienced Management: RMD's management team is seasoned and experienced (8.1 years average tenure).
Experienced Board: RMD's board of directors are considered experienced (7.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RMD insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ResMed Inc.'s company bio, employee growth, exchange listings and data sources
- Name: ResMed Inc.
- Ticker: RMD
- Exchange: NYSE
- Founded: 1989
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: US$28.700b
- Shares outstanding: 145.51m
- Website: https://www.resmed.com
Number of Employees
- ResMed Inc.
- 9001 Spectrum Center Boulevard
- San Diego
- United States
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep apnea, chronic obs...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/09 22:16|
|End of Day Share Price||2021/04/09 00:00|
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.