Stock of the Day

February 12, 2020

ResMed (RMD)

$198.86
-$3.90 (-1.9%)
Market Cap: $29.41B

About ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN's software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

ResMed Bull Case

Here are some ways that investors could benefit from investing in ResMed Inc.:

  • The company reported a strong earnings per share (EPS) of $2.86 for the latest quarter, exceeding analyst expectations, which indicates robust financial performance.
  • ResMed Inc. has demonstrated a significant year-over-year revenue growth of approximately 10.8%, showcasing its ability to expand its market presence and increase sales.
  • The current stock price is around $218, reflecting investor confidence and a solid market position in the medical device sector.
  • With a net margin of 27.44%, ResMed Inc. shows strong profitability, which is attractive for investors looking for companies with efficient operations.
  • The company has a low dividend payout ratio of 23.14%, suggesting that it retains a significant portion of its earnings for reinvestment, which could lead to future growth.

ResMed Bear Case

Investors should be bearish about investing in ResMed Inc. for these reasons:

  • Despite recent growth, the company's stock has seen fluctuations, which may indicate volatility and potential risks for investors.
  • Insider selling activity has been noted, with the CEO recently selling shares, which could raise concerns about the company's future outlook from a leadership perspective.
  • ResMed Inc. operates in a competitive market, and any changes in healthcare regulations or reimbursement policies could adversely affect its business model.
  • The dividend yield is relatively low at around 1.3%, which may not be appealing for income-focused investors seeking higher returns from dividends.
  • Institutional ownership is at 54.98%, which, while significant, may indicate that a large portion of shares is held by a few entities, potentially leading to less liquidity in the stock.
← Previous Stock of the DayNext Stock of the Day →

Recent News