ResMed Inc (RMD, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $251.61, despite a daily decrease of 1.74%, ResMed Inc has experienced a significant three-month growth of 28.02%. A detailed analysis, supported by the GF Score, indicates that ResMed Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. Stocks with higher GF Scores typically yield better long-term returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. ResMed Inc boasts a GF Score of 97, reflecting its strong potential for market leadership.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 6/10
Understanding ResMed Inc's Business
ResMed Inc, with a market cap of $36.93 billion and annual sales of $4.81 billion, is a leading global provider in the respiratory care device sector. The company's operating margin stands impressively at 30.84%. ResMed's focus on digital health solutions in the out-of-hospital setting differentiates it in the market, leveraging clinical data to enhance patient and provider experiences. This strategic focus is supported by recent acquisitions and innovations, positioning the company well in a growing market driven by increasing diagnoses of sleep apnea, aging populations, and rising obesity levels.
Financial Strength Breakdown
ResMed Inc's financial robustness is evident through its Financial Strength rating. An Interest Coverage ratio of 45.74 significantly surpasses the benchmark set by investment guru Benjamin Graham, indicating strong capability to meet interest obligations. Furthermore, an Altman Z-Score of 13.74 and a Debt-to-Revenue ratio of 0.18 underscore the company's financial health and stability.
Profitability and Growth Metrics
ResMed Inc's Profitability Rank is outstanding, with an Operating Margin that has consistently improved over the past five years, reaching 29.54% in 2024. The company's Predictability Rank of 4.5 stars reflects its reliable operational performance. Growth has been equally impressive, with a 3-Year Revenue Growth Rate of 13.3%, outperforming 65.14% of its industry peers.
Conclusion
Considering ResMed Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights 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.
