ResMed Inc. (RMD) Stock

ResMed Inc. trades at a P/E ratio of 28.64, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 24.51 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.52 indicates reasonable value when growth is considered.

With a beta of 0.77, ResMed Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 6.75 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

ResMed Inc. achieves a profit margin of 26.20%, meaning it retains $26.20 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 33.00% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 25.80% and ROA at 14.00%, the company generates strong returns on invested capital.

ResMed Inc.'s revenue grew by 7.90% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 21.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SURGICAL & MEDICAL INSTRUMENTS & APPARATUS industry averages for proper context.

ResMed Inc. offers a dividend yield of 0.83%, paying $2.07 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/8/2025.

The dividend sustainability can be assessed through the payout ratio - ResMed Inc. pays $2.07 per share in dividends against earnings of $8.91 per share, resulting in a payout ratio of 23.23%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 6/12/2025.

ResMed Inc. has a market capitalization of $37.41B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 146.63M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SURGICAL & MEDICAL INSTRUMENTS & APPARATUS industry, it competes with other firms in this sector.

ResMed Inc.'s book value per share is $37.83, while the current stock price is $274.96, resulting in a price-to-book (P/B) ratio of 7.27. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

19 analysts cover RMD with 63% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $264.49 implies -3.8% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 8 Buy, 6 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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