ResMed Inc RMD

Morningstar Rating
$218.89 −2.26 (1.02%)
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Company Report

Resmed's Growth Rests on the Undiagnosed Majority

ResMed is taking a “smart devices” and Big Data approach to further entrench itself as one of the two leading players in the global obstructive sleep apnea market. With cloud-connected devices, physicians can monitor patient compliance and encourage continued use. Higher adherence supports both reimbursement rates from payers and the resupply of masks and accessories. ResMed also plays a key role in producing clinical data that demonstrates treatment can minimize related risks such as hypertension, stroke, heart attack, and Alzheimer’s disease. Through its own testing devices and education, ResMed seeks more widespread diagnosis and treatment of OSA.

Price vs Fair Value

RMD is trading at a LOCK|@!?@vx premium.
Price
$221.15
Fair Value
LOCK|Yd
Uncertainty
LOCK|LWpC
1-Star Price
LOCK|sb
5-Star Price
LOCK|x%
Economic Moat
LOCK|PD^>
Capital Allocation
LOCK|!^vwwp%

Bulls Say, Bears Say

Bulls

The long-term growth opportunity for respiratory homecare devices is sizable, as both developed and emerging markets are still significantly underpenetrated.

Bears

Market share gains from Philips’ product recall may be limited as affected customers can wait for a replacement unit, purchase an alternative Philips product, and ResMed’s supply chain may be constrained.

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Trading Information

Previous Close Price
$221.15
Day Range
$218.03–223.73
52-Week Range
$180.27–284.87
Bid/Ask
$218.00 / $227.50
Shares Outstanding
140.64M
Market Cap
$31.58B
Volume/Avg
879,820 / 1M

Key Statistics

Price/Earnings (Normalized)
19.80
Price/Sales
5.71
Dividend Yield (Trailing)
1.11%
Dividend Yield (Forward)
1.19%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
3.12%

Company Profile

ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks, and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea, combined with aging populations and increasing prevalence of obesity, is resulting in a structurally growing market. The company earns roughly two-thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan, and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor, and payer in the out-of-hospital setting.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Mid Core
Total Number of Employees
11,370

Competitors

Valuation

Metric
RMD
CTEC
COLO B
Price/Earnings (Normalized)
19.8022.3231.97
Price/Book Value
4.843.937.00
Price/Sales
5.712.323.29
Price/Cash Flow
17.1812.5411.95
Price/Earnings
RMD
CTEC
COLO B

Financial Strength

Metric
RMD
CTEC
COLO B
Quick Ratio
1.831.060.88
Current Ratio
3.101.931.56
Interest Coverage
—3.346.65
Quick Ratio
RMD
CTEC
COLO B

Profitability

Metric
RMD
CTEC
COLO B
Return on Assets (Normalized)
19.09%9.54%11.86%
Return on Equity (Normalized)
25.91%22.72%38.99%
Return on Invested Capital (Normalized)
22.30%13.15%15.76%
Return on Assets
RMD
CTEC
COLO B

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