uploads/2018/09/RMD-ana-reco-1.png

What ResMed’s Valuation Trend Indicates

By

Updated

Analysts’ recommendations

Ten analysts covered ResMed (RMD) in September. Four analysts gave ResMed stock a “buy” or higher rating, five analysts gave it a “hold” rating, and one analyst gave it a “strong sell” rating. The mean rating for ResMed stock is 2.6, and its target price is $104.69.

Article continues below advertisement

Peer ratings

Among ResMed’s peers, Agilent Technologies (A), Stryker (SYK), and Thermo Fisher Scientific (TMO) received mean ratings of 1.64, 1.93, and 1.63, respectively. Agilent Technologies, Stryker, and Thermo Fisher Scientific received target prices of $78.43, $184.43, and $252.86, respectively.

Valuation metrics

ResMed (RMD) stock has been on an upward trajectory in 2018. Its stock has risen from $85.53 on January 2 to its current level of ~$114.00 in September.

ResMed’s enterprise value is $16.58 billion, and its enterprise-value-to-revenue ratio is 7.09. Its price-to-sales ratio is 6.99, and its price-to-book ratio is 7.94. ResMed is trading at a forward price-to-earnings multiple of 27.81x.

RMD’s current ratio, which measures how effectively a company can meet its short-term obligations, stands at 2.10. The current ratios of its peers Agilent Technologies, Stryker, and Thermo Fisher Scientific stand at 3.6, 1.8, and 1.6, respectively.

ResMed’s long-term debt-to-equity ratio stands at 0.13. The long-term debt-to-equity ratios of Agilent Technologies, Stryker, and Thermo Fisher Scientific stand at 0.39, 0.63, and 0.67, respectively, indicating that ResMed has lower leverage than its peers.

Advertisement

More From Market Realist