RMD share price in focus
ResMed is a medical equipment company based in San Diego, California, but originally founded in Australia by Peter Farrell. The company provides cloud-connectable continuous positive airway pressure, or CPAP, machines for the treatment of obstructive sleep apnea (OSA). ResMed shares a listed both on the NYSE and the ASX. Because the primary listing is in the US, the market announcements and reports might look a bit different to other Australian companies as they follow the US format.
ResMed is a global company with 10,000+ employees and a presence in over 140 countries. It has two primary business units: Sleep and Respiratory Care, and Software as a Service (SaaS). The industry-leading CPAP machines for sleep apnea are provided under the Sleep and Respiratory Care business. This covers patients ranging from those who only require therapy from CPAP systems at night to those who are dependent on non-invasive or invasive ventilation for life-support. Within the SaaS unit ResMed provides software that assists durable or home medical equipment (DME/HME). Basically, it assists in out-of-hospital care.
ResMed leverages its industry-leading hardware (e.g. masks and humidifiers) and its SaaS data to drive insights, improve outcomes and reduce overall healthcare costs.
WTC shares
Founded in 1994 by Richard White and Maree Isaacs, Wisetech Global is a developer of cloud-based software used for international and domestic logistics industries.
Wisetech’s vast suite of software products is used across various logistics functions including fowarding & customs, landside transport, rates & contracts, warehousing, and transport management systems.
Their cornerstone software is called Cargowise. It’s become an industry-leading solution now used by all 25 of the largest global freight forwarders and 46 of the top 50 third-party logistics providers.
RMD share price valuation
As a growth company, some of the trends we would be looking for from RMD include revenue growth, profit growth, and return on equity (ROE). Since 2021, RMD has grown revenue at a rate of 13.6% per year to reach $4,685m in FY24. Over the same time period, net profit has increased from $475m to $1,021m. RMD last reported a ROE of 22.7%.
Over the last 3 years, WTC has increased revenue at a rate of 27.1% per year to hit $1,042m in FY24. Meanwhile, net profit has risen from $108m to $263m. WTC’s last reported ROE was 12.8%.
Please keep in mind that context is important – these metrics give us some indication of company performance, but we need a lot more info to work out the value of RMD or WTC shares. To learn more about valuation, I’d recommend signing up for one of our free online investing courses.
