(RMD) ResMed - Overview
Sector: Healthcare | Industry: Medical Instruments & Supplies | Exchange: NYSE (USA) | Market Cap: 29.355m USD | Total Return: -18% in 12m
Industry Rotation: +2.0
Avg Turnover: 277M
EPS Trend: 97.2%
Qual. Beats: 2
Rev. Trend: 97.2%
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 (-817.3m) to EBITDA (2.10b): -0.39 < 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: 40.76 > 6 (EBITDA TTM 2.10b / 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: 0.17 (EBIT TTM 1.42b / Avg Total Assets 8.18b) |
| D: 3.03 (Book Value of Equity 6.93b / Total Liabilities 2.29b) |
| Altman-Z'' Score: 8.95 = 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-Score: -3.11 (Cap -4..+1) = AA |
Over the past week, the price has changed by -2.07%, over one month by -11.50%, over three months by -20.85% and over the past year by -17.99%.
- StrongBuy: 8
- Buy: 4
- Hold: 6
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 270.6 | 34% |
P/E Forward = 17.452
P/S = 5.3009
P/B = 4.6199
P/EG = 1.2154
Revenue TTM = 5.54b USD
EBIT TTM = 1.42b USD
EBITDA TTM = 2.10b USD
Long Term Debt = 404.2m USD (from longTermDebt, last quarter)
Short Term Debt = 289.2m USD (from shortTermDebt, last quarter)
Debt = 843.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -817.3m USD (from netDebt column, last quarter)
Enterprise Value = 28.54b USD (29.36b + Debt 843.2m - CCE 1.66b)
Interest Coverage Ratio = 40.76 (Ebit TTM 1.42b / Interest Expense TTM 34.8m)
EV/FCF = 16.27x (Enterprise Value 28.54b / FCF TTM 1.75b)
FCF Yield = 6.15% (FCF TTM 1.75b / Enterprise Value 28.54b)
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 = 3.25 (Enterprise Value 28.54b / Total Assets 8.78b)
Interest Expense / Debt = 1.46% (Interest Expense 12.3m / Debt 843.2m)
Taxrate = 20.62% (103.6m / 502.3m)
NOPAT = 1.13b (EBIT 1.42b * (1 - 20.62%))
Current Ratio = 3.01 (Total Current Assets 4.06b / Total Current Liabilities 1.35b)
Debt / Equity = 0.13 (Debt 843.2m / totalStockholderEquity, last quarter 6.49b)
Debt / EBITDA = -0.39 (Net Debt -817.3m / EBITDA 2.10b)
Debt / FCF = -0.47 (Net Debt -817.3m / 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 = 21.38% (EBIT 1.42b / Capital Employed (Equity 6.23b + L.T.Debt 404.2m))
RoIC = 16.33% (NOPAT 1.13b / Invested Capital 6.89b)
WACC = 7.99% (E(29.36b)/V(30.20b) * Re(8.19%) + D(843.2m)/V(30.20b) * Rd(1.46%) * (1-Tc(0.21)))
Discount Rate = 8.19% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -58.04 | Cagr: -0.15%
[DCF] Terminal Value 81.61% ; FCFF base≈1.68b ; Y1≈2.07b ; Y5≈3.53b
[DCF] Fair Price = 424.6 (EV 60.78b - Net Debt -817.3m = Equity 61.60b / Shares 145.1m; r=7.99% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 97.16 | EPS CAGR: 18.99% | SUE: 1.08 | # QB: 2
Revenue Correlation: 97.22 | Revenue CAGR: 12.68% | SUE: 0.64 | # QB: 0
EPS next Quarter (2026-09-30): EPS=2.86 | Chg30d=-0.20% | Revisions=-9% | Analysts=11
EPS current Year (2026-06-30): EPS=11.09 | Chg30d=+0.56% | Revisions=+57% | GrowthEPS=+16.1% | GrowthRev=+9.8%
EPS next Year (2027-06-30): EPS=12.15 | Chg30d=-0.19% | Revisions=+13% | GrowthEPS=+9.6% | GrowthRev=+7.6%
[Analyst] Revisions Ratio: +57%