Resmed Inc Intrinsic Stock Value – ResMed Downsizes Workforce & Restructures Executive Team Amid Sleep Apnea Device Production
December 6, 2023
🌥️Trending News
RESMED ($NYSE:RMD): ResMed Inc., a San Diego-based manufacturer of sleep apnea devices, recently announced a major restructuring of its executive team and a downsizing of its workforce. ResMed is well-known for its range of products designed to help those suffering from sleep apnea to breathe easier. The restructuring of ResMed’s executive team has been done in order to focus the company’s efforts on new product development and on its core markets. As a result, some roles have been eliminated and the company has had to reduce its workforce. This has been done in order to streamline the business, improve efficiency and ensure that the company’s resources are being used in the most effective way. ResMed has also taken this opportunity to invest more in its core markets by expanding its sleep apnea product portfolio.
By focusing on new product development and its core markets, the company is hoping to be able to more effectively meet the needs of consumers suffering from sleep apnea. In order to ensure that the restructuring and workforce reduction have been done in the most efficient way, the company has taken steps to ensure that employees affected by this process have access to the necessary resources and support. This includes providing job search assistance, counselling services, and other forms of support. The restructuring and downsizing at ResMed will have an impact on the company’s operations, but the company is hopeful that the changes will ultimately help it to become more efficient and successful in its core markets. With a focus on new product development, ResMed is looking to the future with optimism.
Market Price
On Tuesday, RESMED INC, a medical device manufacturer best known for its production of sleep apnea devices, announced it would be down sizing its workforce and restructuring its executive team. Despite this news, the company’s stock opened at $160.8 and closed at $161.0, down by only 0.4% from its previous closing price of 161.5. The company cited the need to restructure in order to increase efficiency within the organization and reduce costs.
This downsizing is expected to be coupled with a streamlined executive team, with the company citing the need to focus resources on higher priority projects. Despite these changes, RESMED INC remains committed to developing innovative products and providing quality customer service. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Resmed Inc. More…
| Total Revenues | Net Income | Net Margin |
| 4.38k | 906.5 | 20.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Resmed Inc. More…
| Operations | Investing | Financing |
| 934.92 | -1.25k | 313.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Resmed Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.74k | 2.49k | 28.9 |
Key Ratios Snapshot
Some of the financial key ratios for Resmed Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.1% | 10.9% | 26.6% |
| FCF Margin | ROE | ROA |
| 18.1% | 17.4% | 10.8% |
Analysis – Resmed Inc Intrinsic Stock Value
GoodWhale has conducted an analysis of RESMED INC‘s financials to determine the current fair value of the company. Our proprietary Valuation Line determined that the fair value of a RESMED INC share is around $262.8. Currently, the stock is traded at $161.0, meaning it is undervalued by 38.7%. This presents a great opportunity for investors to take advantage of the market and purchase the stock at a discounted price. More…
Peers
ResMed’s competitors include Natus Medical Inc, Sanara MedTech Inc, and Avita Corp.
– Natus Medical Inc ($NASDAQ:SMTI)
As of 2022, Sanara MedTech Inc has a market cap of 227.36M and a Return on Equity of -22.91%. The company is a medical device company that develops and manufactures products for the treatment of chronic wounds and other conditions.
– Sanara MedTech Inc ($TPEX:4735)
Avita Corp is a biotechnology company that develops, manufactures, and markets products based on regenerative medicine. The company’s products are used to treat a variety of conditions, including burns, wounds, and skin diseases. Avita’s products are sold in over 30 countries worldwide. The company has a market cap of 1.21B as of 2022 and a return on equity of 9.62%.
Summary
ResMed Inc. is a San Diego based sleep apnea device maker that recently announced layoffs and an executive team restructuring. These changes were implemented in an effort to better focus on the company’s core businesses and lessen their exposure to economic uncertainties. From an investor point of view, these changes should be viewed as a positive. The cost cutting that comes with reducing their workforce and restructuring their executive team should help improve their bottom line and cash flow, and also make them more competitive in the marketplace.
Additionally, ResMed’s strong balance sheet, healthy cash flow, and high dividend yield are encouraging signs for investors. With the company’s stock currently trading at a price below intrinsic value, ResMed Inc may be a good option for those looking to invest in a quality company with potential upside.
