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Resmed Inc (RMD)

Undervalued
HealthcareMedical Instruments & SuppliesUnited States

Fundamental

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

General caseUndervalued

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

Analyst price target:$252.69
Discounted cash flow (DCF):$648.66
Earnings multiple (P/E):$187.86
Graham growth formula:$536.94
Earnings power value (EPV):$117.38
Justified P/B:$94.85
Dividend discount (Gordon):$35.02
P/FFO, funds from operations:$191.29
Mid-cycle earnings:$201.95
Revenue multiple:$147.35
Last Earnings Surprise:+1.09%

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

7/9

Strong financial health

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

1.19

High quality: earnings backed by cash

Share Dilution

-0.8%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Michael J. Farrell BE, MBA, SMCEO & Chairman53
Dr. Peter C. Farrell A.M., B.E., BE (Hons), Ph.D., ScDFounder, Chair Emeritus & Non-Executive Director83
Mr. Aaron BloomerChief Financial Officer39
Mr. Michael J. RiderChief Legal Officer & Secretary67
Mr. Brett A. SandercockAdvisor58
Mr. Justin LeongChief Product Officer48
Mr. Alastair RobertsonChief Information Officer-
Ms. Sallilyn SchwartzChief Communications & Investor Relations Officer-
Mr. Jim EllisChief Compliance Officer-
Ms. Yvonne-Katrin PucknatChief Marketing Officer49

Audit Risk

1

Board Risk

7

Compensation Risk

4

Shareholder Rights Risk

3

Documents

  • 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

    View document

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.

VolatilityMedium

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

DateWhen EPS est.EPS actualSurprise Gap 1 day5 days
Aug 6, 2026After the close2.922.95+1.1% -7.2% -5.1% +1.6%
Apr 30, 2026After the close2.822.86+1.3% -3.7% -4.1% -3.2%
Jan 29, 2026After the close2.752.81+2.1% -2.6% +0.3% +3.7%
Oct 30, 2025After the close2.582.55-1.2% +0.9% -2.1% -1.0%
Jul 31, 2025After the closen/an/an/a+3.7% +2.7% +3.0%
Apr 23, 2025After the closen/an/an/a+8.7% +10.1% +10.3%
Jan 30, 2025After the closen/an/an/a+0.1% -8.3% -7.9%
Oct 24, 2024After the closen/an/an/a+8.8% +7.1% +1.4%
Aug 1, 2024After the closen/an/an/a-2.1% +4.2% -0.2%
Apr 25, 2024After the closen/an/an/a+10.7% +18.9% +18.9%
Jan 24, 2024After the closen/an/an/a+10.4% +8.5% +10.7%
Oct 26, 2023After the closen/an/an/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.

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.

  • 3/10/2026POSITIVE
    3 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.

  • 3/4/2026POSITIVE
    Here'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.