Stock Idea
About the company
Resmed Inc. (RMD) is a global company digital health and cloud-connected medical devices. The Company design innovative solutions to treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Also, its digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, chronic obstructive pulmonary disease, or COPD, and other chronic diseases.
The Technicals
* Please note this is general advice only
RMD is one of our Quality stocks (please see our definition under “A Quest For Value” on our website). The recent pullback to the 50% retracement from the all time highs, alerted us to the opportunity and the recent bounce from that level confirmed it. As this is a long term play. In the event of a further decline we would look to add to the position in order to dollar cost average.
We are comfortable only averaging down on our quality shares as they represent a long term hold and not on other technical buy opportunities. If and or when this stock no longer represents a long term buy, we will alert you of the fact.
With the stock currently trading at $24.95, we are comfortable paying up to $26.00.
* Please note this is general advice only
RMD
| 2020 Y | 2021 Y | 2022 Y | |
| REVENUE PER SHARE | 2.05 | 2.20 | 2.45 |
| OPERATING MARGIN (%) | 27.63 | 28.54 | 27.96 |
| NET INCOME, GAAP | 622 | 475 | 779 |
| LONG TERM DEPT | 1266 | 758 | 886 |
| ROIC | 19 | 12.58 | 19.67 |
| RETURN ON CAPITAL | 16.73 | 12.17 | 18.11 |
| RETURN ON EQUITY | 23.59 | 16.05 | 23.29 |
| FREE CASH FLOW | 0.48 | 0.43 | 0.13 |
General Consensus
The general consensus on the stock is a hold, with 6 brokers calling it a Buy, 2 a Sell and 8 a hold.