RMD: Not rated
Published 14 Sep 2026, 10:33 BST. This is the frozen version, not the current recommendation.
Why this assessment was issued
First recorded assessment. Current data checks do not support an active rating.
A target is not published until the required checks pass. Release EPS is $11.17; statement-derived EPS is $10.56. The difference exceeds 5%; the earnings basis needs review before a rating is issued.
Supporting evidence
Quarterly sales are growing
Revenue changed +8.6% from the same quarter last year, through 2026-06-30. The previous quarter’s year-on-year change was +10.8%.
Borrowing is lower relative to earnings
Net debt / EBITDA: -0.3× for RMD, against 1.6× across 11 comparable peers.
Opposing evidence
The profit margin narrowed
The latest quarterly operating margin was 30.7%, -3.1 percentage points from a year earlier. Compare the sales and margin contributions below.
Earnings forecasts have fallen
The estimate for the period ending 2027-06-30 changed -0.1% over 30 days. Coverage is 20 analysts.
Original assumptions and checks
| eps | 11.17 |
|---|---|
| cash | 1469234000.0 |
| debt | 825919000.0 |
| years | 1.2073921971252566 |
| growth | 9.94170015243284 |
| margin | 26.944518588053334 |
| profit | 1523293000.0 |
| cash_ok | True |
| debt_ok | True |
| growths | [9.070819405982311, 10.97575909316748, 10.812580898883372, 8.579718143936944] |
| revenue | 5653443000.0 |
| downside | 0 |
| leverage | -0.3080920528662716 |
| multiple | 26.426211453744493 |
| free_cash | 1649544000.0 |
| buy_hurdle | 15 |
| volatility | 26.56734892079805 |
| history_end | 2026-09-11 |
| reward_risk | Not available |
| annual_years | 5 |
| usable_weeks | 157 |
| history_start | 2023-09-15 |
| history_weeks | 157 |
| financial_date | 2026-06-30 |
| interest_cover | 37.799394959330044 |
| operating_cash | 1805829000.0 |
| uncapped_growth | 9.94170015243284 |
| current_multiple | 19.54073410922113 |
| projected_margin | 24.36752377779365 |
| historical_margin | 21.790528967533966 |
Recent price · Passed. Weekly close dated 2026-09-11.
Suitable business model · Passed. Value operating cash flow or comparable earnings; deduct debt and other ownership claims where appropriate.
Four quarters · Passed. Four quarters ending 2026-06-30.
Current financials · Passed. Statements through 2026-06-30; factor prices dated 2026-09-11.
Annual record · Passed. 5 consecutive annual profit margins, including loss years.
Comparable earnings history · Passed. P/E is usable in 157 of 157 weeks. At least 52 usable weeks and 70% coverage are required; excluding too many loss or missing weeks would bias the target.
Earnings and price dates · Passed. Earnings-release EPS $11.17, for four quarters ending 2026-06-30.
Price risk · Passed. Risk uses the latest 52 weekly price changes.
Comparable sales growth · Passed. Growth uses the median of four quarterly year-on-year comparisons.
Positive statement earnings · Passed. Trailing statement profit is positive.
Earnings reconciliation · Review needed. Release EPS is $11.17; statement-derived EPS is $10.56. The difference exceeds 5%; the earnings basis needs review before a rating is issued.
Statement totals · Passed. The latest four quarters agree with the trailing snapshot within 5%.
Cash and borrowing · Passed. Cash generation, debt and interest-cover figures are available.
Policy sm-review-2-research · Model sm-assessment-9-financial-integrity · Data 615f103ecd81.