ResMed Inc.
Find Ratings ReportsRESMED INC's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. RESMED INC has average liquidity. Currently, the Quick Ratio is 1.29 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 19.89% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
---|---|---|
Net Sales ($mil) | 1162.8 | 1033.74 |
EBITDA ($mil) | 390.46 | 326.37 |
EBIT ($mil) | 345.67 | 288.61 |
Net Income ($mil) | 208.8 | 224.91 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 217.86 | 258.18 |
Total Assets ($mil) | 6905.09 | 6676.1 |
Total Debt ($mil) | 1391.37 | 1939.46 |
Equity ($mil) | 4481.85 | 3738.13 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 59.04 | 58.81 |
EBITDA Margin | 33.57 | 31.57 |
Operating Margin | 29.73 | 27.92 |
Sales Turnover | 0.65 | 0.56 |
Return on Assets | 12.89 | 12.12 |
Return on Equity | 19.87 | 21.65 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 3.11 | 3.17 |
Debt/Capital | 0.24 | 0.34 |
Interest Expense | 16.98 | 13.31 |
Interest Coverage | 20.36 | 21.68 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 147.09 | 146.9 |
Div / share | 0.48 | 0.44 |
EPS | 1.42 | 1.53 |
Book value / share | 30.47 | 25.45 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 935459.0 | 1419167.0 |
HOLD. This stock's P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 6.29 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, RESMED INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RMD 31.69 | Peers 53.34 | RMD 26.14 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. RMD is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RMD is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RMD 23.79 | Peers 26.06 | RMD 1.50 | Peers 1.95 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. RMD is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. RMD trades at a discount to its peers. |
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Price/Book |
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Earnings Growth |
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RMD 6.29 | Peers 23.59 | RMD 9.80 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RMD is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, RMD is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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RMD 6.26 | Peers 14.13 | RMD 19.68 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RMD is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RMD significantly trails its peers on the basis of sales growth. |
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