ResMed Inc. - NYSE:RMD - Comprehensive analysis
Our thesis for ResMed remains largely unchanged, even as the gap between the share price and our fair value estimate narrows. We project five-year revenue and EBIT compound annual growth rates (CAGRs) of 8% and 10%, respectively, which aligns with ResMed’s guidance for high-single-digit revenue growth and accelerated earnings growth. The global sleep apnea market remains underpenetrated, with improving diagnosis rates driven by advancements in wearable technologies and heightened awareness. We anticipate margin expansion as ResMed’s sales mix shifts towards higher-margin masks, and as the inefficiencies associated with the simultaneous production of older AirSense 10 devices diminish. Nonetheless, we identify other companies that present a larger valuation gap.
Free evaluation through quantitative algorithms ResMed Inc. - NYSE:RMD
Growth-Scoring Model Detail
Total Revenue Growth Over Prior Year | 9.38 | Market 72 Sector 63 |
Gross Profit Growth Over Prior Year | 15.58 | Market 83 Sector 70 |
EBITDA Growth Over Prior Year | 25.1 | Market 84 Sector 77 |
EBITA Growth Over Prior Year | 26.8 | Market 86 Sector 74 |
EBIT Growth Over Prior Year | 28.4 | Market 85 Sector 74 |
Earnings from Cont. Ops. Growth Over Prior Year | 40.2 | Market 82 Sector 73 |
Net Income Growth Over Prior Year | 40.2 | Market 81 Sector 71 |
Normalized Net Income Growth Over Prior Year | 33.7 | Market 84 Sector 69 |
Diluted EPS before Extra Growth Over Prior Year | 40.2 | Market 80 Sector 70 |
A/R Growth Over Prior Year | 12.51 | Market 80 Sector 74 |
Inventory Growth Over Prior Year | -12.7 | Market 8 Sector 13 |
PPE Net Growth Over Prior Year | -4.83 | Market 16 Sector 48 |
Total Assets Growth Over Prior Year | 3.42 | Market 54 Sector 58 |
Tangible Book Value Growth Over Prior Year | 85 | Market 93 Sector 87 |
Common Equity Growth Over Prior Year | 17.21 | Market 82 Sector 74 |
Cash from Ops. Growth Over Prior Year | 36.8 | Market 90 Sector 73 |
CAPEX Growth Over Prior Year | -27.52 | Market 9 Sector 34 |
Dividend per Share Growth Over Prior Year | 9.78 | Market 80 Sector 98 |
Levered Free Cash Flow Growth Over Prior Year | 35.9 | Market 80 Sector 68 |
Unlevered Free Cash Flow Growth Over Prior Year | 31.1 | Market 78 Sector 67 |
Profitability-Scoring Model Detail
Gross Margin % | 60 | Market 73 Sector 58 |
SG&A Margin % | 19.34 | Market 63 Sector 33 |
EBITDA Margin % | 34.8 | Market 71 Sector 95 |
EBITA Margin % | 32.7 | Market 85 Sector 96 |
EBIT Margin % | 31.7 | Market 86 Sector 97 |
Earnings from Cont. Ops Margin % | 25.3 | Market 85 Sector 96 |
Net Income Margin % | 25.3 | Market 85 Sector 96 |
Net Income Avail. for Common Margin % | 25.3 | Market 86 Sector 96 |
Normalized Net Income Margin % | 19.52 | Market 87 Sector 96 |
Levered Free Cash Flow Margin % | 22.4 | Market 81 Sector 93 |
Unlevered Free Cash Flow Margin % | 22.7 | Market 77 Sector 92 |
Return on Assets % | 13.89 | Market 91 Sector 97 |
Return on Capital % | 16.3 | Market 85 Sector 96 |
Return on Equity % | 25.7 | Market 70 Sector 94 |
Return on Common Equity % | 25.7 | Market 70 Sector 95 |
Total Asset Turnover | 0.7 | Market 68 Sector 78 |
