Resmed Inc (RMD)
UndervaluedFundamental
74
Price
$252.86
Market Cap
$34.63B
Part 1 · What the company is worth
Overview
ResMed Inc. engages in the digital health and cloud-connected medical devices business in the United States and internationally. It operates in two segments, Sleep and Breathing Health, and Residential Care Software. The company offers sleep recorders for the diagnosis and titration of sleep apnea in sleep clinics, hospitals, and at home, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry; and EasyCare Tx, a sleep lab solution. It also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; and connectivity module which provides a cellular connection between compatible ventilation devices and AirView system. In addition, the company offers Brightree solutions which are solutions and services for organizations in home medical equipment and pharmacy, orthotic and prosthetic, and home infusion; HEALTHCAREfirst solutions that offers electronic health record, software, billing and coding services, and advanced analytics that enables home health and hospice agencies to optimize clinical, financial and administrative processes; MatrixCare EHR software as a service solutions used by skilled nursing and senior living providers, life plan communities, and home health and hospice sectors; and MEDIFOX DAN software solutions that is used by residential care providers, such as home health and nursing home providers. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$5.65B
Trailing 12 months (through 6/30/2026)
Net Income
$1.52B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$1.65B
Total Equity
$6.59B
Total Liabilities
$2.38B
Current Ratio
3.10
Interest Coverage
-
Debt/EBITDA
0.40
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$347.89
Current Price
$252.86
Margin of Safety
+27.3%
Fair Value Range
$226.13 - $469.65
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
24.24
ROE
23.1%
P/B Ratio
5.54
P/FCF
22.11
Gross Margin
61.1%
ROIC
19.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
19.7%
WACC
8.6%
ROIC − WACC
+11.1 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 15.14%
- Price CAGR 14.26%
- ROIC 19.7%
- Gross margin 61.1%
- P/FCF 22.11
- Debt/equity ratio
- Operating margin 33.4%
- Positive free cash flow
- CapEx intensity
- Current ratio
- Debt/EBITDA
- Return on tangible assets
- ROE 23.9%
- Revenue growth 5Y 12.1%
- Earnings surprise, average 4.1%
- PEG ratio 0.86
- Earnings quality (operating cash flow / net income) 1.19
- Share dilution -0.8%
- Piotroski F-Score 7/9
Failed (5)
- P/B ratio 5.54
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Net margin trend 26.9% vs 27.2%
Unavailable (2)
- Dividend payout –
- Interest coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Michael J. Farrell BE, MBA, SM | CEO & Chairman | 53 |
| Dr. Peter C. Farrell A.M., B.E., BE (Hons), Ph.D., ScD | Founder, Chair Emeritus & Non-Executive Director | 83 |
| Mr. Aaron Bloomer | Chief Financial Officer | 39 |
| Mr. Michael J. Rider | Chief Legal Officer & Secretary | 67 |
| Mr. Brett A. Sandercock | Advisor | 58 |
| Mr. Justin Leong | Chief Product Officer | 48 |
| Mr. Alastair Robertson | Chief Information Officer | - |
| Ms. Sallilyn Schwartz | Chief Communications & Investor Relations Officer | - |
| Mr. Jim Ellis | Chief Compliance Officer | - |
| Ms. Yvonne-Katrin Pucknat | Chief Marketing Officer | 49 |
Audit Risk
1
Board Risk
7
Compensation Risk
4
Shareholder Rights Risk
3
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-08-13
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-05-01
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-01
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much RMD moves, measured on its daily prices.
More volatile than 42% of the tracked stocks (90-day volatility).
- Volatility 30d
- 20.9%
- Volatility 90d
- 32.8%
- Beta vs S&P 500 (1y)
- 0.37Correlation 0.16
- Max drawdown (12m)
- -33.8%
- ATR (14d, % of price)
- 2.27%
Earnings reactions
How RMD moved around its past quarterly results.
Next earnings release
Oct 29, 2026 · In 5 days · After the close
EPS estimate: 2.67Revenue estimate: $1.4B
What usually happens
- Over the last 12 releases the stock moved a median of 4.6% the next day, up or down.
- Next-day moves: up 7, down 5 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 6, 2026 | After the close | 2.92 | 2.95 | +1.1% | -7.2% | -5.1% | +1.6% |
| Apr 30, 2026 | After the close | 2.82 | 2.86 | +1.3% | -3.7% | -4.1% | -3.2% |
| Jan 29, 2026 | After the close | 2.75 | 2.81 | +2.1% | -2.6% | +0.3% | +3.7% |
| Oct 30, 2025 | After the close | 2.58 | 2.55 | -1.2% | +0.9% | -2.1% | -1.0% |
| Jul 31, 2025 | After the close | n/a | n/a | n/a | +3.7% | +2.7% | +3.0% |
| Apr 23, 2025 | After the close | n/a | n/a | n/a | +8.7% | +10.1% | +10.3% |
| Jan 30, 2025 | After the close | n/a | n/a | n/a | +0.1% | -8.3% | -7.9% |
| Oct 24, 2024 | After the close | n/a | n/a | n/a | +8.8% | +7.1% | +1.4% |
| Aug 1, 2024 | After the close | n/a | n/a | n/a | -2.1% | +4.2% | -0.2% |
| Apr 25, 2024 | After the close | n/a | n/a | n/a | +10.7% | +18.9% | +18.9% |
| Jan 24, 2024 | After the close | n/a | n/a | n/a | +10.4% | +8.5% | +10.7% |
| Oct 26, 2023 | After the close | n/a | n/a | n/a | +4.4% | -2.9% | +8.2% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on RMD and what the price did next.
- 3/10/2026Positive3 Reasons Not to Sleep on ResMed Stock
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 3/4/2026PositiveHere's How Much You Would Have Made Owning ResMed Stock In The Last 10 Years
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for RMD.
- 3/10/2026POSITIVE3 Reasons Not to Sleep on ResMed Stock
ResMed Inc., a prominent player in the sleep apnea and respiratory care market, is highlighted for its leadership in CPAP machines and other vital medical devices. The company's focus on improving respiratory health for millions globally positions it favorably within the healthcare sector. Investors are advised not to overlook ResMed's potential, suggesting a positive outlook driven by its established market position and ongoing innovation in medical technology. The company's products address a significant and growing health concern, underpinning its long-term value proposition.
- 3/4/2026POSITIVEHere's How Much You Would Have Made Owning ResMed Stock In The Last 10 Years
ResMed Inc. (RMD) stock has delivered exceptional performance over the past 10 years, offering investors significant returns. While the article doesn't provide exact figures, the title "Here's How Much You Would Have Made" implies consistent and profitable growth. This is crucial for investors assessing the long-term potential of the medical device and sleep-care solutions sector. Past performance, while not guaranteeing future results, indicates ResMed's strong ability to generate shareholder value, potentially driven by product innovation, market expansion, and sound management.