(RMD) ResMed - Overview
Sector: Healthcare | Industry: Medical Instruments & Supplies | Exchange: NYSE (USA) | Market Cap: 29.613m USD | Total Return: -14.4% in 12m
Avg Turnover: 287M
EPS Trend: 99.5%
Qual. Beats: 2
Rev. Trend: 99.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
ResMed Inc. (RMD) specializes in the development and distribution of medical hardware and cloud-based software for managing respiratory disorders, primarily sleep apnea and chronic obstructive pulmonary disease (COPD). The company operates through two primary segments: Sleep and Breathing Health, which focuses on diagnostic devices and ventilation equipment, and Residential Care Software, which provides specialized SaaS solutions for out-of-hospital care settings.
The business model relies on a recurring revenue ecosystem where physical devices, such as the AirView and myAir platforms, are integrated with digital monitoring tools to improve patient compliance and clinical outcomes. This integration is critical in the Health Care Equipment sector, where digital health transformation is increasingly used to reduce hospital readmission rates and lower the total cost of care for chronic conditions.
The software portfolio includes Brightree, MatrixCare, and MEDIFOX DAN, which provide electronic health records (EHR) and administrative analytics for home health, hospice, and skilled nursing facilities. For a deeper look at these business segments and their impact on valuation, you can explore the data on ValueRay. ResMed maintains a global footprint, supporting healthcare providers and patients through both diagnostic hardware and enterprise-level healthcare IT infrastructure.
- Global sleep apnea device demand drives consistent double-digit equipment revenue growth
- GLP-1 weight loss drug adoption impacts long-term patient funnel and valuation
- Cloud-based software subscriptions expand recurring revenue and operating margins
- Competitor product recalls increase market share for AirSense and AirCurve platforms
- Rising component costs and supply chain constraints pressure hardware gross margins
| Net Income: 1.52b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA -0.70 > 1.0 |
| NWC/Revenue: 48.99% < 20% (prev 45.16%; Δ 3.82% < -1%) |
| CFO/TA 0.22 > 3% & CFO 1.89b > Net Income 1.52b |
| Net Debt (-638.3m) to EBITDA (2.16b): -0.30 < 3 |
| Current Ratio: 3.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (147.0m) vs 12m ago -0.12% < -2% |
| Gross Margin: 61.69% > 18% (prev 0.59%; Δ 6.11k% > 0.5%) |
| Asset Turnover: 67.74% > 50% (prev 66.36%; Δ 1.37% > 0%) |
| Interest Coverage Ratio: 54.58 > 6 (EBITDA TTM 2.16b / Interest Expense TTM 34.8m) |
| A: 0.31 (Total Current Assets 4.06b - Total Current Liabilities 1.35b) / Total Assets 8.78b |
| B: 0.79 (Retained Earnings 6.96b / Total Assets 8.78b) |
| C: 0.23 (EBIT TTM 1.90b / Avg Total Assets 8.18b) |
| D: 3.03 (Book Value of Equity 6.93b / Total Liabilities 2.29b) |
| Altman-Z'' = 9.35 = AAA |
| DSRI: 0.96 (Receivables 998.8m/939.5m, Revenue 5.54b/5.02b) |
| GMI: 0.95 (GM 61.69% / 58.53%) |
| AQI: 0.94 (AQ_t 0.45 / AQ_t-1 0.49) |
| SGI: 1.10 (Revenue 5.54b / 5.02b) |
| TATA: -0.04 (NI 1.52b - CFO 1.89b) / TA 8.78b) |
| Beneish M = -3.11 (Cap -4..+1) = AA |
As of May 23, 2026, the stock is trading at USD 208.98 with a total of 744,496 shares traded.
Over the past week, the price has changed by +3.06%,
over one month by -6.02%,
over three months by -19.99% and
over the past year by -14.42%.
ResMed has received a consensus analysts rating of 3.95. Therefore, it is recommended to buy RMD.
- StrongBuy: 8
- Buy: 4
- Hold: 6
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 270.6 | 29.5% |
P/E Forward = 17.452
P/S = 5.3475
P/B = 4.6199
P/EG = 1.2154
Revenue TTM = 5.54b USD
EBIT TTM = 1.90b USD
EBITDA TTM = 2.16b USD
Long Term Debt = 404.2m USD (from longTermDebt, last quarter)
Short Term Debt = 289.2m USD (from shortTermDebt, last quarter)
Debt = 1.02b USD (from shortLongTermDebtTotal, last quarter) + Leases 179.1m
Net Debt = -638.3m USD (calculated: Debt 1.02b - CCE 1.66b)
Enterprise Value = 29.0b USD (29.6b + Debt 1.02b - CCE 1.66b)
Interest Coverage Ratio = 54.58 (Ebit TTM 1.90b / Interest Expense TTM 34.8m)
EV/FCF = 16.52x (Enterprise Value 29.0b / FCF TTM 1.75b)
FCF Yield = 6.05% (FCF TTM 1.75b / Enterprise Value 29.0b)
FCF Margin = 31.68% (FCF TTM 1.75b / Revenue TTM 5.54b)
Net Margin = 27.44% (Net Income TTM 1.52b / Revenue TTM 5.54b)
Gross Margin = 61.69% ((Revenue TTM 5.54b - Cost of Revenue TTM 2.12b) / Revenue TTM)
Gross Margin QoQ = 62.25% (prev 62.18%)
Tobins Q-Ratio = 3.30 (Enterprise Value 29.0b / Total Assets 8.78b)
Interest Expense / Debt = 3.40% (Interest Expense 34.8m / Debt 1.02b)
Taxrate = 20.62% (103.6m / 502.3m)
NOPAT = 1.51b (EBIT 1.90b * (1 - 20.62%))
Current Ratio = 3.01 (Total Current Assets 4.06b / Total Current Liabilities 1.35b)
Debt / Equity = 0.16 (Debt 1.02b / totalStockholderEquity, last quarter 6.49b)
Debt / EBITDA = -0.30 (Net Debt -638.3m / EBITDA 2.16b)
Debt / FCF = -0.36 (Net Debt -638.3m / FCF TTM 1.75b)
Total Stockholder Equity = 6.23b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.59% (Net Income 1.52b / Total Assets 8.78b)
RoE = 24.41% (Net Income TTM 1.52b / Total Stockholder Equity 6.23b)
RoCE = 28.64% (EBIT 1.90b / Capital Employed (Equity 6.23b + L.T.Debt 404.2m))
RoIC = 19.61% (NOPAT 1.51b / Invested Capital 7.69b)
WACC = 7.94% (E(29.6b)/V(30.6b) * Re(8.12%) + D(1.02b)/V(30.6b) * Rd(3.40%) * (1-Tc(0.21)))
Discount Rate = 8.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -58.04 | Cagr: -0.15%
[DCF] Terminal Value 76.90% ; FCFF base≈1.68b ; Y1≈1.85b ; Y5≈2.38b
[DCF] Fair Price = 254.5 (EV 36.3b - Net Debt -638.3m = Equity 36.9b / Shares 145.1m; r=8.35% [WACC [floored]]; 5y FCF grow 12.14% → 2.50% )
EPS Correlation: 99.46 | EPS CAGR: 21.99% | SUE: 1.08 | # QB: 2
Revenue Correlation: 99.89 | Revenue CAGR: 9.93% | SUE: 0.64 | # QB: 0
EPS next Quarter (2026-09-30): EPS=2.87 | Chg30d=+0.05% | Revisions=-9% | Analysts=9
EPS current Year (2026-06-30): EPS=11.08 | Chg30d=+0.52% | Revisions=+57% | GrowthEPS=+16.0% | GrowthRev=+9.8%
EPS next Year (2027-06-30): EPS=12.20 | Chg30d=+0.18% | Revisions=+13% | GrowthEPS=+10.1% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: +57%