Eli Lilly released results from its SURMOUNT-OSA clinical trial, which have reignited concerns that GLP-1 drugs may disrupt the sleep apnea industry. However, we think these concerns are overblown. Shares in narrow-moat ResMed remain undervalued versus our unchanged USD 264 fair value estimate, or AUD 40 per CDI at current exchange rates.
The long-term growth opportunity for respiratory homecare devices is sizable as both developed and emerging markets are still significantly underpenetrated.
Market share gains from Philips’ product recall may be limited as affected customers can wait for a replacement unit, purchase an alternative Philips product, and ResMed’s supply chain may be constrained.
|
Metric
|
RMD
|
PHIA
|
FPH
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.69 | 18.33 | 82.01 |
Price/Book Value | 5.86 | 1.83 | 9.76 |
Price/Sales | 6.00 | 1.28 | 9.81 |
Price/Cash Flow | 21.57 | 26.69 | 40.14 |
|
Metric
|
RMD
|
PHIA
|
FPH
|
|---|---|---|---|
Quick Ratio | 1.32 | 0.74 | 0.88 |
Current Ratio | 3.04 | 1.20 | 1.83 |
Interest Coverage | 22.63 | −1.60 | 13.77 |
|
Metric
|
RMD
|
PHIA
|
FPH
|
|---|---|---|---|
Return on Assets (Normalized) | 15.75% | — | 11.54% |
Return on Equity (Normalized) | 24.94% | — | 15.07% |
Return on Invested Capital (Normalized) | 19.33% | — | 13.94% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Intuitive Surgical Inc
ISRG
| Ypkbbfbwl | Xwwy | $154.7 Bil | |||
| Becton Dickinson & Co
BDX
| Fdstbmnvg | Vwdbpq | $66.3 Bil | |||
| Alcon Inc
ALC
| Kbhvkcndh | Zvkss | $43.9 Bil | |||
| ResMed Inc
RMD
| Prmghwps | Vlfmttl | $27.5 Bil | |||
| Coloplast A/S ADR
CLPBY
| Xjlsymksh | Zhlw | $27.0 Bil | |||
| West Pharmaceutical Services Inc
WST
| Zltzknmhp | Wwwp | $23.8 Bil | |||
| Hologic Inc
HOLX
| Cjjtkywlf | Ycymjz | $17.3 Bil | |||
| The Cooper Companies Inc
COO
| Hcwyrqy | Lthgzj | $17.2 Bil | |||
| Baxter International Inc
BAX
| Mpxbwhcc | Ddmtcq | $16.8 Bil | |||
| Teleflex Inc
TFX
| Dys | Jll | $10.0 Bil |
