Market Cap
US$23.3b
Last Updated
2020/01/21 23:52 UTC
Data Sources
Company Financials +
Executive Summary
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software solutions that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with moderate growth potential.
Similar Companies
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.3%
RMD
2.0%
US Medical Equipment
0.8%
US Market
1 Year Return
37.9%
RMD
29.1%
US Medical Equipment
25.1%
US Market
Return vs Industry: RMD exceeded the US Medical Equipment industry which returned 28.4% over the past year.
Return vs Market: RMD exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| RMD | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 2.0% | 0.8% |
| 30 Day | 3.9% | 4.1% | 3.1% |
| 90 Day | 27.8% | 12.7% | 10.9% |
| 1 Year | 39.6%37.9% | 30.1%29.1% | 27.7%25.1% |
| 3 Year | 143.1%132.3% | 96.1%90.4% | 51.3%41.6% |
| 5 Year | 170.8%148.4% | 130.3%105.7% | 77.2%57.6% |
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
5 days ago | Simply Wall St
Does ResMed (NYSE:RMD) Deserve A Spot On Your Watchlist?2 weeks ago | Simply Wall St
Could ResMed Inc. (NYSE:RMD) Have The Makings Of Another Dividend Aristocrat?4 weeks ago | Simply Wall St
Can ResMed Inc.'s (NYSE:RMD) ROE Continue To Surpass The Industry Average?Valuation
Is ResMed undervalued compared to its fair value and its price relative to the market?
55.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RMD ($158.32) is trading above our estimate of fair value ($93.13)
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 (54.2x) compared to the Medical Equipment industry average (46.3x).
PE vs Market: RMD is poor value based on its PE Ratio (54.2x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: RMD is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: RMD is overvalued based on its PB Ratio (10.8x) compared to the US Medical Equipment industry average (4.1x).
Next Steps
Future Growth
How is ResMed forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
13.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RMD's forecast earnings growth (13% per year) is above the savings rate (1.7%).
Earnings vs Market: RMD's earnings (13% per year) are forecast to grow slower than the US market (14.3% 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 (7.5% 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 (24.6%)
Next Steps
Past Performance
How has ResMed performed over the past 5 years?
2.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RMD has high quality earnings.
Growing Profit Margin: RMD's current net profit margins (15.5%) are higher than last year (13.9%).
Past Earnings Growth Analysis
Earnings Trend: RMD's earnings have grown by 2.8% per year over the past 5 years.
Accelerating Growth: RMD's earnings growth over the past year (25%) exceeds its 5-year average (2.8% per year).
Earnings vs Industry: RMD earnings growth over the past year (25%) underperformed the Medical Equipment industry 31%.
Return on Equity
High ROE: RMD's Return on Equity (19.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is ResMed's financial position?
Financial Position Analysis
Short Term Liabilities: RMD's short term assets ($1.2B) exceed its short term liabilities ($550.5M).
Long Term Liabilities: RMD's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: RMD's debt to equity ratio (57.6%) is considered high.
Reducing Debt: RMD's debt to equity ratio has increased from 22.8% to 57.6% over the past 5 years.
Debt Coverage: RMD's debt is well covered by operating cash flow (47%).
Interest Coverage: RMD's interest payments on its debt are well covered by EBIT (15.9x coverage).
Balance Sheet
Inventory Level: RMD has a low level of unsold assets or inventory.
Debt Coverage by Assets: RMD's debt is not covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is ResMed's current dividend yield, its reliability and sustainability?
0.96%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RMD's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: RMD's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (52%), RMD's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RMD's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).
Next Steps
Management
What is the CEO of ResMed's salary, the management and board of directors tenure and is there insider trading?
6.8yrs
Average management tenure
CEO
Mick Farrell (47yo)
6.8yrs
Tenure
US$9,635,100
Compensation
Mr. Michael J. Farrell, also known as Mick, BE, SM, MBA has been the Chief Executive Officer of ResMed Inc. since March 1, 2013. Mr. Farrell served as President of Americas Operations at ResMed Inc. since  ...
CEO Compensation Analysis
Compensation vs Market: Mick's total compensation ($USD9.64M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Mick's compensation has been consistent with company performance over the past year.
Management Age and Tenure
6.8yrs
Average Tenure
56yo
Average Age
Experienced Management: RMD's management team is seasoned and experienced (6.8 years average tenure).
Board Age and Tenure
6.1yrs
Average Tenure
60yo
Average Age
Experienced Board: RMD's board of directors are considered experienced (6.1 years average tenure).
Insider Trading
Insider Buying: RMD insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 3,000 |
| Max Price | US$146.10 |
| Entity | Company |
| Shares | 1,370 |
| Max Price | US$149.26 |
| Entity | Individual |
| Role | President President & COO |
| Shares | 1,360 |
| Max Price | US$146.70 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 4,429 |
| Max Price | US$136.34 |
| Entity | Individual |
| Shares | 12,306 |
| Max Price | US$127.06 |
| Entity | Individual |
| Role | Senior Key Executive President of Software as a Service Business (SaaS) |
| Shares | 16,739 |
| Max Price | US$101.50 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Peter Farrell (77yo)
Founder & Non-Executive Chairman
- Tenure: 6yrs
- Compensation: US$791.18k
David Pendarvis (60yo)
Chief Administrative Officer
- Tenure: 8.7yrs
- Compensation: US$2.72m
Connie Bienfait
Director of Investor Relations
Brett Sandercock (52yo)
Chief Financial Officer
- Tenure: 14yrs
- Compensation: US$2.91m
Rob Douglas (59yo)
President & COO
- Tenure: 6.8yrs
- Compensation: US$6.43m
Mick Farrell (47yo)
CEO & Director
- Tenure: 6.8yrs
- Compensation: US$9.64m
Jim Hollingshead (56yo)
President of Sleep Business
- Tenure: 8.7yrs
- Compensation: US$3.27m
Raj Sodhi (46yo)
President of Software as a Service Business (SaaS)
- Tenure: 2.5yrs
- Compensation: US$2.93m
Bobby Ghoshal
Chief Technology Officer
- Tenure: 1.8yrs
Amy Wakeham
Vice President of Investor Relations & Corporate Communications
Board Members
Rich Sulpizio (69yo)
Independent Director
- Tenure: 14.4yrs
- Compensation: US$329.98k
Peter Farrell (77yo)
Founder & Non-Executive Chairman
- Tenure: 6yrs
- Compensation: US$791.18k
Ron Taylor (71yo)
Lead Independent Director
- Tenure: 6.5yrs
- Compensation: US$344.98k
Jan De Witte (55yo)
Non-Executive Director
- Tenure: 0.7yrs
- Compensation: US$133.17k
Harjit Gill (54yo)
Independent Director
- Tenure: 1.2yrs
- Compensation: US$288.17k
Mick Farrell (47yo)
CEO & Director
- Tenure: 6.8yrs
- Compensation: US$9.64m
Carol Burt (61yo)
Independent Director
- Tenure: 6.2yrs
- Compensation: US$332.98k
Karen Drexler (59yo)
Independent Director
- Tenure: 2.2yrs
- Compensation: US$314.98k
Company Information
ResMed Inc.'s company bio, 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$23.285b
- Shares outstanding: 143.79m
- Website: https://www.resmed.com
Number of Employees
Location
- ResMed Inc.
- 9001 Spectrum Center Boulevard
- San Diego
- California
- 92123
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RMD | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 1995 |
| RME | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1995 |
| 0KW4 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 1995 |
| RMD | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jun 1995 |
| RMD * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1995 |
| RMD | ASX (Australian Securities Exchange) | CDI COM USD0.004 (10CDI/1SHS) | AU | AUD | Nov 1999 | |
| RSMD.F | OTCPK (Pink Sheets LLC) | CDI COM USD0.004 (10CDI/1SHS) | US | USD | Nov 1999 | |
| RMEA | DB (Deutsche Boerse AG) | CDI COM USD0.004 (10CDI/1SHS) | DE | EUR | Nov 1999 | |
| RMD | CHIA (Chi-X Australia) | CDI COM USD0.004 (10CDI/1SHS) | AU | AUD | Nov 1999 | |
| RMD | CHIA (Chi-X Australia) | CDI COM USD0.004 (10CDI/1SHS) | AU | AUD | Nov 1999 |
Biography
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software solutions that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. The company operates through two segments, Sleep and Respiratory Care, and Software as a Service (SaaS). 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, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides humidifiers, carry bags, and breathing circuits; data communications and control products, such as AirView Diagnostics, EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules; U-Sleep, which enables automated patient coaching through a text, email, or interactive voice phone call; AirView that enables remote monitoring, over-the-air trouble shooting, and changing of device settings; and myAir, a patient engagement application that offers sleep data and a daily score based on their previous night’s data, as well as S+, connectivity module, and propeller solutions. In addition, it provides business management software and services to out-of-hospital providers, home medical equipment, pharmacy, home infusion, orthotics, and prosthetics; and healthcare-first and matrixcare solutions. The company markets its products to sleep clinics, home healthcare dealers, patients, hospitals, physicians, and third-party payers through a network of distributors and direct sales force in approximately 120 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/21 23:52 |
| End of Day Share Price | 2020/01/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/06/30 |
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.