ResMed Inc (RMD, Financial) has experienced a significant uptick in its stock performance, with a market capitalization now standing at $31.48 billion. The current price of $214.04 reflects an impressive 18.99% gain over the past week and a 12.20% gain over the past three months. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued with a GF Value of $281.22, up from a past GF Value of $280.22. This marks a shift from being significantly undervalued three months ago to its current status, indicating a positive trend for investors.
Introducing ResMed Inc
ResMed Inc, a leader in the medical devices and instruments industry, specializes in respiratory care devices. The company's focus on sleep apnea treatment, combined with an aging population and rising obesity rates, positions it in a growing market. With a significant presence in the Americas and a strong footprint in Europe, Japan, and Australia, ResMed is expanding its reach. The company's strategic emphasis on digital health through acquisitions and development underscores its commitment to innovation. This approach aims to enhance patient care and provide valuable clinical data in out-of-hospital settings.
Profitability Insights
ResMed's financial health is robust, as evidenced by its perfect Profitability Rank of 10/10. The company's operating margin stands at an impressive 26.98%, outperforming 92.39% of 815 companies in the industry. Its return on equity (ROE) is 21.68%, and return on assets (ROA) is 13.18%, both surpassing over 92% of industry peers. The return on invested capital (ROIC) at 16.56% further demonstrates ResMed's efficient use of capital, better than 87.59% of competitors. A consistent track record of profitability over the past decade solidifies ResMed's financial prowess within the medical devices sector.
Growth Trajectory
ResMed's growth is equally impressive, with a Growth Rank of 10/10. The company has maintained a 3-Year Revenue Growth Rate per Share of 12.20%, surpassing 61.78% of 743 companies. Its 5-Year Revenue Growth Rate per Share is 11.50%, outperforming 65.81% of 626 companies. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 7.10%, which is better than 32.26% of 186 companies. Earnings per share (EPS) growth rates are also strong, with a 3-Year EPS without NRI Growth Rate of 14.70% and a 5-Year EPS without NRI Growth Rate of 23.00%, indicating a robust upward trend in profitability.
Notable Shareholders
ResMed's stock is held by several prominent investors. Ray Dalio (Trades, Portfolio) holds 158,526 shares, representing 0.11% of the company, while Paul Tudor Jones (Trades, Portfolio) owns 123,580 shares, accounting for 0.08%. Baillie Gifford (Trades, Portfolio)'s stake of 60,046 shares makes up 0.04% of ResMed, showcasing the confidence these seasoned investors have in the company's prospects.
Competitive Landscape
In comparison to its peers, ResMed holds a strong position in the market. West Pharmaceutical Services Inc (WST, Financial) has a market cap of $26.35 billion, Baxter International Inc (BAX, Financial) is valued at $20.48 billion, and The Cooper Companies Inc (COO, Financial) stands at $17.86 billion. ResMed's market cap of $31.48 billion not only surpasses these competitors but also reflects its significant impact and leadership within the medical devices industry.
Conclusion
In summary, ResMed Inc's recent stock performance, with a 12.20% gain over the past three months, is a testament to its strong financial health and growth potential. The company's strategic focus on digital health, combined with its impressive profitability and growth metrics, positions it favorably against competitors. With the backing of notable investors and a market-leading position, ResMed is well-equipped to continue its trajectory of success in the dynamic medical devices sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
