company background image
RMD

ResMed NYSE:RMD Stock Report

Last Price

US$239.99

Market Cap

US$35.1b

7D

-0.7%

1Y

-12.8%

Updated

14 Aug, 2022

Data

Company Financials +
RMD fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
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.

Rewards

Earnings are forecast to grow 11.67% per year

Earnings grew by 64.3% over the past 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$239.99
52 Week HighUS$301.34
52 Week LowUS$189.40
Beta0.47
1 Month Change6.43%
3 Month Change21.88%
1 Year Change-12.76%
3 Year Change78.51%
5 Year Change228.44%
Change since IPO35,619.44%

Recent News & Updates

Aug 11

ResMed Non-GAAP EPS of $1.49 beats by $0.03, revenue of $914.74M beats by $2.22M

ResMed press release (NYSE:RMD): Q4 Non-GAAP EPS of $1.49 beats by $0.03. Revenue of $914.74M (+4.4% Y/Y) beats by $2.22M. Non-GAAP gross margin grew 50 bps to 57.8%, non-GAAP operating profit up 4%. Operating cash flow for the quarter was $79.5 million, reflecting the impact of increases in working capital. During the quarter we paid $61.5 million in dividends.

Aug 02

ResMed acquires digital insomnia therapy company mementor to bolster sleep portfolio

ResMed (NYSE:RMD) acquired Leipzig-based mementor to bolster its sleep portfolio in Germany with a digital solution for insomnia. Financial terms of the transaction, which was completed Aug. 1, were not disclosed by ResMed. Mementor developed and owns a digital insomnia therapy solution called somnio, which is Germany's first and only permanently approved Digital Health Application (DiGA) in the field of sleep medicine and thus eligible for reimbursement in the country, ResMed said in an Aug. 2 press release. ResMed added that somnio is available in Germany via "app on prescription." ResMed noted that the acquisition lays foundation to build its digital sleep medicine portfolio in Germany Mementor will be integrated into ResMed in Germany as a separate business segment, which will be co-led by mementor Co-Founder and CEO Noah Lorenz and Katherina Jekerle, who was previously ResMed Germany's senior marketing director and member of German leadership team.

Shareholder Returns

RMDUS Medical EquipmentUS Market
7D-0.7%1.9%3.2%
1Y-12.8%-19.1%-10.2%

Return vs Industry: RMD exceeded the US Medical Equipment industry which returned -19.1% over the past year.

Return vs Market: RMD underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is RMD's price volatile compared to industry and market?
RMD volatility
RMD Average Weekly Movement3.8%
Medical Equipment Industry Average Movement9.4%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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$35.14b
Earnings (TTM)US$779.44m
Revenue (TTM)US$3.58b

45.1x

P/E Ratio

9.8x

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

0.7%

Current Dividend Yield

31%

Payout Ratio

Does RMD pay a reliable dividends?

See RMD dividend history and benchmarks
When do you need to buy RMD by to receive an upcoming dividend?
ResMed dividend dates
Ex Dividend DateAug 17 2022
Dividend Pay DateSep 22 2022
Days until Ex dividend2 days
Days until Dividend pay date38 days

Does RMD pay a reliable dividends?

See RMD dividend history and benchmarks
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

1/6

Valuation Score 1/6

  • 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/Revenue10x
Enterprise Value/EBITDA31.8x
PEG Ratio3.9x

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 Average52.3x
IDXX IDEXX Laboratories
49.7x12.4%US$33.0b
BAX Baxter International
30.1x19.1%US$30.4b
ZBH Zimmer Biomet Holdings
84.6x22.1%US$24.6b
EW Edwards Lifesciences
44.6x10.1%US$65.0b
RMD ResMed
45.1x11.7%US$35.1b

Price-To-Earnings vs Peers: RMD is good value based on its Price-To-Earnings Ratio (45.1x) compared to the peer average (52.3x).


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 (45.1x) compared to the US Medical Equipment industry average (34.4x)


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 Ratio45.1x
Fair PE Ratio34.4x

Price-To-Earnings vs Fair Ratio: RMD is expensive based on its Price-To-Earnings Ratio (45.1x) 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 ($239.99) is trading above our estimate of fair value ($171.8)

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


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 20 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.7%

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 (1.9%).

Earnings vs Market: RMD's earnings (11.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: RMD's revenue (7.4% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: RMD's revenue (7.4% 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 (21.8%)


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 2.5%.


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


0.73%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 15 2022Ex Dividend DateAug 17 2022Dividend Pay DateSep 22 202236 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: RMD's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: RMD's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.95%).


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?

7.7yrs

Average management tenure


CEO

Mick Farrell (50 yo)

9.42yrs

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

Compensation vs Market: Mick's total compensation ($USD10.39M) is about average for companies of similar size in the US market ($USD12.88M).

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 (7.7 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

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
  • Implied Market Cap: US$35.141b
  • Shares outstanding: 146.42m
  • 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 Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 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.