ResMed Inc Rated High Under Buffett's Investing Strategy

ResMed Inc earns a 92% rating using Warren Buffett's strategy, indicating strong fundamentals and valuation. The company shows positive signs in earnings predictability, debt management, and return metrics.

Date: 31-03-2025

AI Rating: 8

Investment Analysis of ResMed Inc
ResMed Inc (RMD) presents an attractive investment opportunity, as highlighted by its 92% rating based on the Patient Investor model, which focuses on firms with predictable profitability and low debt levels. The company passed various critical metrics including Earnings Predictability, Debt Service, Return on Equity (ROE), and Free Cash Flow (FCF).

Earnings Per Share (EPS) & Revenue Growth:
The report doesn’t specify the EPS and revenue growth figures. However, considering ResMed's strong rating indicates positive trends in profitability, investors might infer that these metrics are at least meeting or exceeding market expectations, benefitting potential price appreciation.

Net Income:
The analysis omits detailed net income figures, but given the company's strong fundamentals and growth rating, it is likely that the net income has been holding steady or increasing, providing a reassuring backdrop for investors looking for solid earnings.

Profit Margins:
Although profit margins are not explicitly mentioned, the strong passing indicators suggest that ResMed maintains healthy margins relative to industry standards, which usually reflects efficient management and operational excellence.

Free Cash Flow (FCF):
The report indicates a pass on Free Cash Flow, which is critical as it signifies the company generates ample cash to fund operations, pay dividends, and reinvest in growth.

Return on Equity (ROE):
ResMed’s passing score on Return on Equity suggests the company is effective at generating profits from shareholder equity, which is an attractive trait for any investor focused on long-term growth.

In summary, ResMed stands out in the Medical Equipment & Supplies sector, attracting interest from investors seeking stability and robust growth metrics. The overall evaluation supports a positive outlook for RMD over the next few months.

Stocks: RMD