RESMED INC (RMD)



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General Information
Company Name: ResMed Inc.
Stock Code: RMD
Website: www.resmed.com.au
GICS Sub-Industry: Health Care Equipment
Market Cap ($M): 7,766
Equiv. Shares (M): 1,556

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 5.060 $ 5.010 $ 5.070 $ 4.990 $ 4.990 3,211,325 $ 0.070  1.403 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 3rd Jun 2013
12 Month Target Price (average): $5.067
Brokers Surveyed: 8

Company Overview

Business Description:
Resmed Inc. (RMD) is a global company involved in the development, manufacturing and marketing of innovative medical products for the treatment and management of respiratory disorders, with a focus on sleep-disordered breathing. RMD sells a broad range of products in more than 70 countries worldwide through direct offices and a network of distributors.

Strategy Analysis:
RMD develops medical devices to treat patients with breathing disorders. It focuses primarily on sleep apnea and aims to educate the public and physicians about the negative effects of this problem. The firm continually upgrades its devices to improve patient experiences. RMD uses acquisitions to fill out its distribution network and product set. ResMed Inc. reported NPAT up 19% to US$226.99m for the year ended 30 June 2011. Revenues from ordinary activities were US$1.24bn, up 14% from last year. The increase in net revenue was attributable to an increase in unit sales of the Company's flow generators, masks and accessories. Diluted EPS was 1.44 cents compared to 1.23 cents last year. Net operating cash flow was $283.19m compared to $188.21m last year. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  F 336.0 23.5 4.7 21.3 10.2 2.0 0.0
2013  F 324.8 22.4 31.1 22.3 8.3 1.7 0.0
2012  A 255.1 17.1 18.2 16.7 1.7 0.6 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Cochlear (COH) $3,335 M -0.0995 -0.1513 0.1824 21.0445 24.7964 20.9713 0.0419 0.0428 0.0430
ResMed (RMD) $7,735 M 0.2200 0.2673 0.1269 29.3909 23.1918 20.5797 0.0000 0.0145 0.0175

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
RMD 0.51 23.4 4.49 1.20 5.54
Market 0.80 13.9 1.17 1.90 1.62
Sector 0.84 21.6 2.73 2.69 1.84

Directors
Name Position Start Date
Mr Michael Farrell Chief Executive Officer,Executive Director 01 March 2013
Dr Peter Craig Farrell Executive Chairman,Chief Executive Officer,President 01 June 1989
Dr Christopher Graham Roberts Non-Executive Director 01 August 1989
Dr Gary W Pace Non-Executive Director 01 July 1994
Mr John Wareham Non-Executive Director 26 January 2005
Mr Richard Sulpizio Non-Executive Director 30 August 2005
Mr Michael A Quinn Non-Executive Director (other) 01 September 1992
Mr Ron Taylor Non-Executive Director (other) 26 January 2005

Management
Name Position
Brett Sandercock Chief Financial Officer
Frank Lacagnina Chief Information Officer
Robert Douglas Chief Operating Officer
Jim Hollingshead Chief Strategy Officer
David Pendarvis Company Secretary
Michael Farrell President, Americas
Karen Borg President, Asia-Pacific
Anne Reiser President, Europe
Geoff Neilson President, Respiratory Care Strategic Business Unit
Don Darkin President, SDB Strategic Business Unit
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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