RMD

ResMed Inc.

Healthcare


Presented:11/06/2013
Price:$50.40
Cap:$7.16B
Current Price:$239.18
Cap:$35.10B

Presented

Date11/06/2013
Price$50.40
Market Cap$7.16B
Ent Value$6.55B
P/E Ratio26.72x
Book Value$11.32
Div Yield1.7%
Shares O/S142.08M
Ave Daily Vol1,190,000
Short Int19.23%

Current

Price$239.18
Market Cap$35.10B
ResMed Inc., through its subsidiaries, engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. It offers various products, including airflow generators, diagnostic products, mask systems, headgear products, and ventilation devices for the treatment of sleep-disordered breathing that includes obstructive sleep apnea and other respiratory disorders, as well as other optional accessories, such as cold passover humidifiers, carry bags, and breathing circuits. The company also provides data communications and control products consisting of EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules that facilitate the transfer of data and other information to and from the flow generators, as well as humidifiers, which connect with the continuous and variable positive airway pressure, and autoset flow generators. ResMed Inc. markets its products to sleep clinics, home healthcare dealers, and third-party payers. The company sells its products through a network of distributors and direct sales force in approximately 100 countries worldwide. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

Highlights

Given ResMed’s (RMD) most recent quarterly results - Q1 2014 numbers were reported on 10/24/13 - the presenter is incrementally more negative on the outlook for the global manufacturer/ distributor of sleep disordered breathing (sleep apnea), COPD, and respiratory equipment and its stock. He believes shares could come under pressure over the next two quarters as it becomes apparent that RMD is facing increasing competition and pressure on prices in the market due to foreign manufacturing and the most recent round of competitive bidding, respectively.

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Idea Discussion

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