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
No risks detected for RMD from our risk checks.
Excellent balance sheet with reasonable growth potential.
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 +/- 3% a week.
Volatility Over Time: RMD's weekly volatility (3%) has been stable over the past year.
7 Day Return
US Medical Equipment
1 Year Return
US Medical Equipment
Return vs Industry: RMD exceeded the US Medical Equipment industry which returned 30.4% over the past year.
Return vs Market: RMD matched the US Market which returned 34.7% 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 StIs ResMed Inc. (NYSE:RMD) Worth US$264 Based On Its Intrinsic Value?
3 weeks ago | Simply Wall StHere's What ResMed Inc.'s (NYSE:RMD) Shareholder Ownership Structure Looks Like
1 month ago | Simply Wall StResMed (NYSE:RMD) Has Rewarded Shareholders With An Exceptional 312% Total Return On Their Investment
Is ResMed undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RMD ($273.17) is trading above our estimate of fair value ($202.83)
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 (86.7x) compared to the US Medical Equipment industry average (49x).
PE vs Market: RMD is poor value based on its PE Ratio (86.7x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: RMD is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: RMD is overvalued based on its PB Ratio (14.7x) compared to the US Medical Equipment industry average (4.4x).
How is ResMed forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RMD's forecast earnings growth (21.6% per year) is above the savings rate (2%).
Earnings vs Market: RMD's earnings (21.6% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RMD's revenue (8.8% per year) is forecast to grow slower than the US market (9.2% 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 (23.5%)
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 (14.8%) are lower than last year (17.7%).
Past Earnings Growth Analysis
Earnings Trend: RMD's earnings have grown by 14.4% 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 (-10.8%) over the past year, making it difficult to compare to the Medical Equipment industry average (34.8%).
Return on Equity
High ROE: RMD's Return on Equity (16.9%) is considered low.
How is ResMed's financial position?
Financial Position Analysis
Short Term Liabilities: RMD's short term assets ($1.5B) exceed its short term liabilities ($876.5M).
Long Term Liabilities: RMD's short term assets ($1.5B) exceed its long term liabilities ($999.9M).
Debt to Equity History and Analysis
Debt Level: RMD's debt to equity ratio (27%) is considered satisfactory.
Reducing Debt: RMD's debt to equity ratio has increased from 26.5% to 27% over the past 5 years.
Debt Coverage: RMD's debt is well covered by operating cash flow (115%).
Interest Coverage: RMD's interest payments on its debt are well covered by EBIT (33.1x coverage).
What is ResMed current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RMD's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: RMD's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (3.54%).
Stability and Growth of Payments
Stable Dividend: RMD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: RMD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: RMD is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mick Farrell (49 yo)
Mr. Michael J. Farrell, also known as Mick, BE, SM, MBA, serves as Member of Advisory Board at Green Sun Medical, LLC. He serves as the Chief Executive Officer of ResMed Pty Ltd. Mr. Farrell has been the C...
CEO Compensation Analysis
Compensation vs Market: Mick's total compensation ($USD10.43M) is about average for companies of similar size in the US market ($USD11.17M).
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 (8.4 years average tenure).
Experienced Board: RMD's board of directors are considered experienced (7.7 years average tenure).
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
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$39.754b
- Shares outstanding: 145.52m
- 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||2021/08/04 23:02|
|End of Day Share Price||2021/08/04 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.