ResMed Return On Asset vs. Current Valuation
| RME Stock | EUR 226.10 3.90 1.76% |
For ResMed profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ResMed to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ResMed Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ResMed's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ResMed Inc over time as well as its relative position and ranking within its peers.
ResMed |
ResMed Inc Current Valuation vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ResMed's current stock value. Our valuation model uses many indicators to compare ResMed value to that of its competitors to determine the firm's financial worth. ResMed Inc is currently regarded as top stock in return on asset category among its peers. It also is currently regarded number one company in current valuation category among its peers reporting about 269,844,174,840 of Current Valuation per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ResMed's earnings, one of the primary drivers of an investment's value.ResMed Current Valuation vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
ResMed |
| = | 0.12 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
ResMed |
| = | 31.17 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
ResMed Current Valuation vs Competition
ResMed Inc is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Medical Instruments & Supplies industry is at this time estimated at about 319.76 Billion. ResMed holds roughly 31.17 Billion in current valuation claiming about 10% of all equities under Medical Instruments & Supplies industry.
ResMed Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ResMed, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ResMed will eventually generate negative long term returns. The profitability progress is the general direction of ResMed's change in net profit over the period of time. It can combine multiple indicators of ResMed, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California. RESMED INC is traded on Frankfurt Stock Exchange in Germany.
ResMed Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ResMed. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ResMed position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ResMed's important profitability drivers and their relationship over time.
Use ResMed in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ResMed position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ResMed will appreciate offsetting losses from the drop in the long position's value.ResMed Pair Trading
ResMed Inc Pair Trading Analysis
The ability to find closely correlated positions to ResMed could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ResMed when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ResMed - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ResMed Inc to buy it.
The correlation of ResMed is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ResMed moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ResMed Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ResMed can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your ResMed position
In addition to having ResMed in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumer Goods Thematic Idea Now
Consumer Goods
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Consumer Goods theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Goods Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in ResMed Stock
When determining whether ResMed Inc is a strong investment it is important to analyze ResMed's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ResMed's future performance. For an informed investment choice regarding ResMed Stock, refer to the following important reports:Check out Your Equity Center. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project ResMed's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ResMed Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ResMed's income statement, its balance sheet, and the statement of cash flows.