OTCPK:RSMD.F

Stock Analysis Report

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.

Snowflake

Fundamentals

Reasonable growth potential with proven track record.


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


Market Performance


7 Day Return

0%

RSMD.F

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

n/a

RSMD.F

9.9%

US Medical Equipment

0.7%

US Market

No trading data on RSMD.F.

No trading data on RSMD.F.


Share holder returns

RSMD.FIndustryMarket
7 Day0%1.1%-0.6%
30 Day0.08%1.3%2.9%
90 Dayn/a3.0%1.3%
1 Yearn/a10.8%9.9%2.9%0.7%
3 Yearn/a70.1%64.9%44.6%35.2%
5 Yearn/a138.9%111.8%61.9%44.2%

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

No news available

Valuation

Is ResMed undervalued based on future cash flows and its price relative to the stock market?

47.59x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

ResMed's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

ResMed's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

ResMed is overvalued based on earnings compared to the US Medical Equipment industry average.

ResMed is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

ResMed is poor value based on expected growth next year.


Price Based on Value of Assets

ResMed is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is ResMed expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ResMed's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

ResMed's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).

ResMed's revenue growth is expected to exceed the United States of America market average.

ResMed's earnings growth is expected to exceed the United States of America market average.

ResMed's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

ResMed is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has ResMed performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ResMed's year on year earnings growth rate has been positive over the past 5 years.

ResMed's 1-year earnings growth exceeds its 5-year average (28.2% vs 2%)

ResMed's earnings growth has not exceeded the US Medical Equipment industry average in the past year (28.2% vs 28.2%).


Return on Equity

ResMed has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ResMed used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

ResMed has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ResMed's financial position?


Financial Position Analysis

ResMed is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ResMed's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

ResMed's level of debt (61.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (17.2% vs 61.3% today).

Debt is well covered by operating cash flow (36.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 18.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

1.27%

Expected Dividend Yield


Dividend Yield and Payments Analysis

ResMed's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

ResMed's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, ResMed has been paying a dividend for less than 10 years.

Dividend payments have increased, but ResMed only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

What is the CEO of ResMed's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Mick Farrell (47yo)

6.5yrs

Tenure

US$9,082,204

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

Mick's remuneration is about average for companies of similar size in United States of America.

Mick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.5yrs

Average Tenure

56yo

Average Age

The average tenure for the ResMed management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

The tenure for the ResMed board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • David Pendarvis (60yo)

    Chief Administrative Officer

    • Tenure: 8.3yrs
    • Compensation: US$2.72m
  • Connie Bienfait

    Director of Investor Relations

    • Tenure: 0yrs
  • Brett Sandercock (52yo)

    Chief Financial Officer

    • Tenure: 13.7yrs
    • Compensation: US$2.86m
  • Rob Douglas (59yo)

    President & COO

    • Tenure: 6.5yrs
    • Compensation: US$6.25m
  • Mick Farrell (47yo)

    CEO & Director

    • Tenure: 6.5yrs
    • Compensation: US$9.08m
  • Geoff Neilson

    Senior Vice President of Global Supplier Alliance

    • Tenure: 4.8yrs
  • Jim Hollingshead (56yo)

    President of Sleep Business

    • Tenure: 8.3yrs
    • Compensation: US$3.17m
  • Bobby Ghoshal

    Chief Technology Officer

    • Tenure: 1.4yrs
  • Amy Wakeham

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Nupur Bhushan

    Chief People Officer

    • Tenure: 2.2yrs

Board Members

  • Rich Sulpizio (69yo)

    Director

    • Tenure: 14.1yrs
    • Compensation: US$330.02k
  • Jack Wareham (78yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: US$321.75k
  • Peter Farrell (77yo)

    Founder & Non-Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: US$768.92k
  • Ron Taylor (71yo)

    Lead Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$345.02k
  • Jan De Witte (55yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Harjit Gill (54yo)

    Director

    • Tenure: 0.8yrs
  • Mick Farrell (47yo)

    CEO & Director

    • Tenure: 6.5yrs
    • Compensation: US$9.08m
  • Carol Burt (61yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$323.27k
  • Karen Drexler (59yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$290.64k

Company Information

ResMed Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ResMed Inc.
  • Ticker: RSMD.F
  • Exchange: OTCPK
  • Founded: 1989
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$19.328b
  • Shares outstanding: 143.67m
  • Website: https://www.resmed.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMDNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1995
RMEDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1995
0KW4LSE (London Stock Exchange)YesCommon StockGBUSDJun 1995
RMDWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1995
RMD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1995
RMDASX (Australian Securities Exchange)DEP CHESSAUAUDNov 1999
RSMD.FOTCPK (Pink Sheets LLC)DEP CHESSUSUSDNov 1999
RMEADB (Deutsche Boerse AG)DEP CHESSDEEURNov 1999
RMDCHIA (Chi-X Australia)DEP CHESSAUAUDNov 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:07
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.