RMD share price in focus
Founded in 1989 by Peter Farrell in Australia, ResMed is now headquartered in San Diego, California. The company specializes in medical equipment, offering cloud-connectable continuous positive airway pressure (CPAP) machines to treat obstructive sleep apnea (OSA). Although ResMed is based in the US, its shares are listed on both the NYSE and the ASX.
With over 10,000 employees and operations in more than 140 countries, ResMed has two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS). In the Sleep and Respiratory Care unit, ResMed provides top-of-the-line CPAP machines for sleep apnea, along with non-invasive and invasive ventilation solutions for life-support patients. In the SaaS unit, the company offers software that supports durable medical equipment (DME/HME), which plays a key role in out-of-hospital care.
ResMed’s extensive digital health network, powered by its cloud-connected devices, enables the company to use its industry-leading hardware (such as masks and humidifiers) and SaaS data to generate valuable insights, enhance patient outcomes, and lower overall healthcare costs.
NWL shares
Netwealth is a wealth management software business that provides a platform for financial planners to manage client money.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA), making it a major industry player.
Netwealth’s big advantage is its scale and the user-friendly interface offered through the online platform. Through one central dashboard, users can buy and sell investments, track performance, and view account summaries, reports and tax statements.
RMD & NWL share price valuation
As a growth company, some of the trends we might investigate from RMD include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, RMD has grown revenue at a rate of 13.6% per year to reach $4,685m in FY24. Over the same stretch of time, net profit has increased from $475m to $1,021m. As for ROE, RMD last reported a ROE of 22.7%.
Over the last 3 years, NWL has increased revenue at a rate of 20.8% per year to hit $255m in FY24. Meanwhile, net profit has increased from $54m to $83m. As for ROE, NWL’s last reported figure was 62.3%.
Please keep in mind that context is important. These metrics give us some indication of company performance, but it’s just the start of valuing RMD or NWL shares. To learn more about valuation, check out one of our free online investing courses.
