ResMed Inc (RMD, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $245.02 and a daily gain of 0.76%, ResMed Inc has shown a notable three-month increase of 17.32%. A detailed analysis, supported by the GF Score, positions ResMed Inc for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. ResMed Inc boasts a GF Score of 99, signaling exceptional potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 9/10
Understanding ResMed Inc's Business
ResMed Inc, with a market cap of $36.01 billion and annual sales of $4.685 billion, is a leading global provider in the respiratory care device sector. The company specializes in developing and supplying flow generators, masks, and accessories for treating sleep apnea. The increasing diagnosis of sleep apnea, combined with aging populations and rising obesity rates, contributes to a growing market. ResMed Inc generates approximately two-thirds of its revenue in the Americas, with the remainder primarily in Europe, Japan, and Australia. Recent strategic acquisitions and a focus on digital health solutions further enhance its market position.
Financial Strength Breakdown
ResMed Inc's robust balance sheet and strategic financial management are reflected in its impressive Interest Coverage ratio of 30.28 and an Altman Z-Score of 13.34, indicating a strong defense against financial distress. The company's prudent debt management is evidenced by a favorable Debt-to-Revenue ratio of 0.19.
Profitability and Growth Metrics
ResMed Inc's Profitability Rank is outstanding, supported by a consistent increase in Operating Margin over the past five years. The company's commitment to growth is evident from its 13.3% 3-Year Revenue Growth Rate, outperforming 64.82% of its peers in the Medical Devices & Instruments industry. Furthermore, the EBITDA growth rates over the past three and five years highlight its ongoing capability to expand and generate earnings.
Conclusion
Considering ResMed Inc's strong financial strength, profitability, and growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
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.
