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RMD

ResMedNYSE:RMD Stock Report

Market Cap

US$39.4b

7D

-4.8%

1Y

57.3%

Updated

27 Sep, 2021

Data

Company Financials +
RMD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends0/6

RMD Overview

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

Rewards

Earnings are forecast to grow 18.15% per year

Risk Analysis

No risks detected for RMD from our risk checks.

ResMed Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ResMed
Historical stock prices
Current Share PriceUS$270.50
52 Week HighUS$165.92
52 Week LowUS$301.34
Beta0.30
1 Month Change-5.72%
3 Month Change9.83%
1 Year Change57.27%
3 Year Change134.87%
5 Year Change320.49%
Change since IPO40,160.47%

Recent News & Updates

Shareholder Returns

RMDUS Medical EquipmentUS Market
7D-4.8%-0.8%2.0%
1Y57.3%32.6%32.8%

Return vs Industry: RMD exceeded the US Medical Equipment industry which returned 32.6% over the past year.

Return vs Market: RMD exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is RMD's price volatile compared to industry and market?
RMD volatility
RMD Beta0.30
Industry Beta0.88
Market Beta1

Stable Share Price: RMD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: RMD's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19897,970Mick 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$39.41b
Earnings (TTM)US$474.51m
Revenue (TTM)US$3.20b

83.1x

P/E Ratio

12.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMD income statement (TTM)
RevenueUS$3.20b
Cost of RevenueUS$1.31b
Gross ProfitUS$1.89b
ExpensesUS$1.41b
EarningsUS$474.51m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.26
Gross Margin59.10%
Net Profit Margin14.84%
Debt/Equity Ratio22.7%

How did RMD perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

49%

Payout Ratio

Valuation

Is ResMed undervalued compared to its fair value and its price relative to the market?

83.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMD ($270.5) is trading above our estimate of fair value ($246.05)

Significantly Below Fair Value: RMD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RMD is poor value based on its PE Ratio (83.1x) compared to the US Medical Equipment industry average (51.4x).

PE vs Market: RMD is poor value based on its PE Ratio (83.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: RMD is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: RMD is overvalued based on its PB Ratio (13.7x) compared to the US Medical Equipment industry average (4.7x).


Future Growth

How is ResMed forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMD's forecast earnings growth (18.1% per year) is above the savings rate (2%).

Earnings vs Market: RMD's earnings (18.1% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: RMD's revenue (8.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: RMD's revenue (8.7% 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 (24.3%)


Past Performance

How has ResMed performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMD has high quality earnings.

Growing Profit Margin: RMD's current net profit margins (14.8%) are lower than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: RMD's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: RMD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RMD had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Medical Equipment industry average (40.5%).


Return on Equity

High ROE: RMD's Return on Equity (16.4%) is considered low.


Financial Health

How is ResMed's financial position?


Financial Position Analysis

Short Term Liabilities: RMD's short term assets ($1.6B) exceed its short term liabilities ($911.8M).

Long Term Liabilities: RMD's short term assets ($1.6B) exceed its long term liabilities ($930.7M).


Debt to Equity History and Analysis

Debt Level: RMD's debt to equity ratio (22.7%) is considered satisfactory.

Reducing Debt: RMD's debt to equity ratio has reduced from 69.2% to 22.7% over the past 5 years.

Debt Coverage: RMD's debt is well covered by operating cash flow (112.4%).

Interest Coverage: RMD's interest payments on its debt are well covered by EBIT (38.8x coverage).


Balance Sheet


Dividend

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

0.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RMD's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: RMD's dividend (0.62%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Mick Farrell (49 yo)

8.5yrs

Tenure

US$10,429,750

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

Compensation vs Market: Mick's total compensation ($USD10.43M) is about average for companies of similar size in the US market ($USD11.29M).

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 (8.5 years average tenure).


Board Members

Experienced Board: RMD's board of directors are considered experienced (7.8 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

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: US$39.412b
  • Shares outstanding: 145.70m
  • Website: https://www.resmed.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:57
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.