Why Are People Talking About Investing in ResMed (RMD)?

By Ken Smith • Wednesday, December 20 16:58 • Permanent Link

After moving 0.2% during today's evening session, ResMed is now trading at a price of $173.97 per share. On average, analysts give it a target price of $178.38.

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets.

Potential ResMed Investors Should Analyze the Following:

ResMed has moved -17.4% over the last year.
The company has a price to earnings growth (PEG) ratio of 2.09. A number between 0 and 1 could mean that the market is undervaluing ResMed's estimated growth potential
Its Price to Book (P/B) ratio is 6.02
ResMed currently returns an annual dividend yield of 1.0%.

Understanding ResMed's Operating Margins

Date Reported	Total Revenue ($ k)	Operating Expenses ($ k)	Operating Margins (%)	YoY Growth (%)
2023	4,222,993	1,223,791	27	-3.57
2022	3,578,127	1,024,025	28	0.0
2021	3,196,825	935,422	28	3.7
2020	2,957,013	908,127	27	22.73
2019	2,606,572	914,808	22	-4.35
2018	2,340,196	793,067	23

Over the last 6 years, ResMed's operating margins have averaged 25.8%, which is better than the 15.02% Medical Instruments & Supplies industry average. We also note that the company's operating margins have a high coefficient of variability at 43.0%. The firm's margins exhibit a relatively stable growth trend of 2.6%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.