Company result

Another excellent result from RMD. We won’t rehash the result here, rather, we’d point out the price of lofty expectations.

The numbers look great, on all metrics, and the underlying story of a competitors woes add to the pre-existing Quality company thematic.

But note what’s in the price, and just how long RMD have to keep up double digit EPS growth.


On our numbers, RMD will need to generate between 11% EPS growth, at the low end, and 20% at the high end, in order to achieve a market like compound annual growth rate of 7% over the next decade.

The median historical CAGR has been above this lower estimate range, but not enormously so. The competitors product recall is unlikely to make up the remainder, but this is exactly the trade the market is proposing.

We have been fans of RMD for a long time, and will remain so, but we think more compelling (and frankly easier) opportunities lie elsewhere.

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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

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