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Is this Large Market Cap Stock target price reasonable for ResMed Inc. (NYSE:RMD)?

The company in question is, ResMed Inc. (NYSE:RMD) currently with a stock price of 64.8 (1.49% today). The market cap for ResMed Inc. is 9075.64, and is in the sector Healthcare, and Medical Appliances & Equipment industry. The target price for ResMed Inc. is 63.13. Currently ResMed Inc. is trading with a P/E of 25.64, and a forward P/E of 20.12. Average volume for ResMed Inc. is 947.83 and so far today it is 525188.

Performance in the last year for ResMed Inc. has been 17.94%. For EPS growth, ResMed Inc. has seen a growth of 0.70%, and is looking to grow in the next year to 10.28%. More long term stats show that EPS growth has been 11.50% over the last five years and could be 10.43% for the next five years. ResMed Inc. has seen sales growth quarter over quarter at 14.50%, with EPS growth quarter over quarter at 7.10%. The 20-day simple moving average is -2.56%, with the 200-day simple moving average coming to 7.18%.

Since the IPO date for ResMed Inc. on the 06/02/1995, ResMed Inc. has seen performance year to date to be 20.74%. With ResMed Inc. trading at 64.8, the dividend yield is 2.07%, and the EPS is 2.49.

So could ResMed Inc., be undervalued? Well as said before P/E is 25.64. The PEG is 2.46, P/S is 4.94 and the P/B is at 5.29. The P/cash is 12.41, with P/free cash flow at 29.09.

ResMed Inc. ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 1.9. This is with long term debt/equity at 0.52, and total debt/equity at 0.69.

In terms of margins, ResMed Inc. has a gross margin of 58.00%, an operating margin of 23.30% and a profit margin of 19.20%.Payout ratio for ResMed Inc. is 47.80%. Return on assets come to 13.80% with return on investment coming to 11.90%.

Insider ownership for ResMed Inc., is at 0.70% and institutional ownership comes to 64.40%. Outstanding shares are at 142.14. While shares float is 139.33. The float short is currently 9.64%, and short ratio is 14.17.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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