AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- -ResMed delivered a 71% total return over five years.
- -EPS grew 21% annually, outpacing stock price gains.
- -A 60% increase in share price last year signals strong growth.
ResMed Inc, a key player in the NYSE Healthcare Stock sector, has had an interesting trajectory over the last five years. While its growth rate has outpaced the market in the short term, a closer look at its long-term performance and fundamentals provides deeper insight into the company's evolving position in the healthcare industry.
Steady Long-Term Growth Despite Market Variations
Over the past five years, ResMed Inc. (NYSE:RMD) has delivered a respectable 71% return to shareholders, a performance that is quite solid, although it falls slightly short of market averages. The company's share price has increased by 64% over this period, highlighting steady growth. However, the last year has proven particularly strong for ResMed, with its share price seeing a substantial 60% increase, demonstrating resilience and renewed investor confidence.
The Earnings Per Share Growth: A Strong Indicator
One of the key indicators of a company's true growth is its earnings per share (EPS), and ResMed has posted an impressive 21% growth rate in EPS over the last five years. This level of growth clearly surpasses the 10% annual increase in its share price, suggesting that the company's underlying business is expanding at a healthy pace. Despite this strong fundamental growth, market sentiment appears to have been relatively subdued, which might explain why the company's stock performance has not fully mirrored its financial improvement.
The Importance of Total Shareholder Return
When analyzing long-term stock performance, it's important to consider Total Shareholder Return , which factors in not only share price growth but also dividends. ResMed's TSR over the last five years is 71%, outpacing its share price return, primarily due to its consistent dividend payments. This emphasizes the importance of dividends in shaping the total return experience for shareholders, especially for those who have reinvested dividends over time.
Recent Performance Shows Strong Momentum
Looking at ResMed’s more recent performance, the company’s share price increase of 60% over the past year is particularly notable. This surge has led to a solid 61% total shareholder return, surpassing the 11% annualized return of the last five years. With such strong momentum, ResMed is clearly moving in a positive direction, and its recent growth may indicate further potential for long-term performance.
