ResMed Inc (RMD, Financial) has recently caught the attention of investors with its impressive stock performance. The company's market capitalization stands at a robust $27.14 billion, with the current stock price at $184.48. Over the past week, the stock has experienced a gain of 0.63%, and looking at a broader timeframe, it has seen a significant 21.13% increase over the past three months. According to GuruFocus's valuation metrics, the GF Value of ResMed is currently $280.53, suggesting that the stock is Significantly Undervalued. This valuation has remained consistent over the past three months, with the past GF Value being $276.41, reinforcing the stock's undervalued status.
Introduction to ResMed Inc
ResMed Inc, a titan in the Medical Devices & Instruments industry, is a leading respiratory care device company. It specializes in the treatment of sleep apnea and has been expanding into digital health solutions. With a growing market due to factors such as an aging population and rising obesity rates, ResMed has been strategically positioning itself by providing clinical data for patients and healthcare providers in the out-of-hospital setting. The company's revenue is primarily generated in the Americas, with a significant presence in Europe, Japan, and Australia.
Examining ResMed's Profitability
ResMed's financial health is robust, as indicated by its Profitability Rank of 10/10, placing it at the pinnacle of profitability within its industry. The company's operating margin is an impressive 26.62%, which surpasses 91.46% of its peers. Furthermore, ResMed's Return on Equity (ROE) stands at 23.26%, outperforming 93.83% of competitors. Its Return on Assets (ROA) and Return on Invested Capital (ROIC) are equally commendable at 14.14% and 16.92%, respectively, both significantly higher than the majority of companies in the industry. ResMed has maintained profitability for the past 10 years, a testament to its financial stability and operational efficiency.
Growth Trajectory of ResMed
ResMed's growth metrics are equally impressive, with a Growth Rank of 10/10. The company has demonstrated a solid 3-Year Revenue Growth Rate per Share of 12.20%, and a 5-Year Revenue Growth Rate per Share of 11.50%, both outpacing a significant portion of the industry. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 9.19%. ResMed's 3-Year EPS without NRI Growth Rate and 5-Year EPS without NRI Growth Rate are 14.70% and 23.00%, respectively, indicating strong earnings growth. The EPS Growth Rate (Future 3Y To 5Y Est) is also promising at 11.15%.
Notable Shareholders in ResMed
ResMed's stock is held by several prominent investors, signaling confidence in the company's prospects. Jim Simons (Trades, Portfolio) is the leading holder with 405,200 shares, representing 0.28% of the company's shares. Following him is Ray Dalio (Trades, Portfolio), holding 230,523 shares, which accounts for 0.16% of the shares. Baillie Gifford (Trades, Portfolio) also has a stake in ResMed, with 63,544 shares, making up 0.04% of the shares.
Competitive Landscape
When compared to its closest competitors, ResMed holds a strong position. West Pharmaceutical Services Inc (WST, Financial) has a market cap of $26.16 billion, Baxter International Inc (BAX, Financial) is valued at $19.46 billion, and The Cooper Companies Inc (COO, Financial) has a market cap of $18.94 billion. ResMed's market cap of $27.14 billion not only places it ahead of these competitors but also highlights its significant presence in the medical devices sector.
Conclusion
In summary, ResMed Inc's stock performance has been outstanding, with a notable 21.13% increase over the past three months and a GF Value indicating significant undervaluation. The company's profitability and growth prospects are robust, with high rankings in both areas. The confidence of notable investors and a strong standing among competitors further solidify ResMed's position in the market. For value investors seeking opportunities, ResMed presents a compelling case for consideration.
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.
