RMD · NYSE · Surgical & Medical Instruments & Apparatus
$245.22 · $35.8B market value · fiscal year to 30 Jun 2026
Live from the latest filings
7 of 10
Buffett tests pass
Margin of safety 18%
Bear
$173.88
Base
$300.29
Bull
$478.08
Price $245.22
7 pass · 3 mixed · 0 fail · 0 can't tell
The diluted share count has changed by 0.3% a year. Shrinking means buybacks are returning value; growing means owners are being diluted.
Why this testAt $245.22, the price is 18% below the base-case value of $300.29 (the bear case is $173.88). The standard lens asks for a 25% margin.
Why this testThe owner-earnings yield is 4.3% against a 10-year Treasury yield of 5.2%.
Why this testNo loss years across 15 years of filings, with operating margin varying by 4.2% around its average.
Why this testReturn on equity averaged 22%, reaching 15% in 10 of the years measured; the weakest year was 16%.
Why this testAfter-tax return on invested capital averaged 20% over 10 years and was 26% in the latest year.
Why this testTotal debt of $659.4M would take 0.4 yrs of normalised owner earnings to repay; operating income covers interest 70×. Both tests pass: payback within 4 years and interest cover of 8x or more.
Why this testNormalised owner earnings are $1.5B, and free cash flow has averaged 103% of reported profit.
Why this testCapital spending has averaged 0.6× depreciation; estimated maintenance capex was $65.3M last year.
Why this testEach dollar retained over the period has been matched by 4.8× of market value created ($5.1B retained in total).
Why this testDiscounted owner earnings
Bear
$173.88
Base
$300.29
Bull
$478.08
Price $245.22
| Scenario | Starting owner earnings | Growth (yrs 1–5) | Terminal | Discount | Value / share |
|---|---|---|---|---|---|
| bear | $1.5B | 6.0% | 1.5% | 9.7% | $173.88 |
| base | $1.5B | 10.0% | 2.5% | 8.2% | $300.29 |
| bull | $1.5B | 13.0% | 3.0% | 7.2% | $478.08 |
How sensitive is that?
| Discount ↓ / Growth → | 6.0% | 8.0% | 10.0% | 12.0% | 14.0% |
|---|---|---|---|---|---|
| 6.2% | $373 | $420 | $472 | $530 |
Fiscal year to 30 Jun 2026
Replicly is a research and education tool. It is not financial advice and does not recommend that you buy or sell any investment. Analyses apply Buffett-inspired principles to public data and can be wrong. Warren Buffett and Berkshire Hathaway are not affiliated with and do not endorse Replicly. Capital is at risk.
| $594 |
| 7.1% | $292 | $328 | $367 | $412 | $461 |
|---|
| 8.2% | $240 | $269 | $300 | $335 | $374 |
|---|
| 9.2% | $204 | $227 | $253 | $282 | $314 |
|---|
| 10.2% | $177 | $197 | $219 | $243 | $270 |
|---|
Green: at least 25% above the price. Amber: above it. Red: below it. n/a means the discount rate is at or below growth, where the model has no finite answer. The corners combine the most extreme assumptions, so treat them as bounds.
Discount rate: 10-year Treasury (5.2%) plus a 3% equity hurdle. Price $245.22 on 20 Oct 2026. End-of-day prices from free public sources, may be delayed or missing.
Revenue
$5.7B
Revenue growth (CAGR)
12%
Operating margin (avg)
27%
Return on equity (avg)
22%
ROIC (avg)
20%
Normalised owner earnings
$1.5B
Cash conversion
103%
Net cash
$809.9M
Debt payback
0.4 yrs
Share count change (CAGR)
0.3%
Price / earnings
24×
Owner earnings yield
4.3%