Back to rankings

Resmed Inc (RMD)

Undervalued
HealthcareMedical Instruments & SuppliesUnited States

Fundamental

75

Price

$221.10

Market Cap

$32.04B

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.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

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

$347.45

Current Price

$221.10

Margin of Safety

+36.4%

Fair Value Range

$225.84 - $469.06

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$250.22
Discounted cash flow (DCF):$650.15
Earnings multiple (P/E):$187.86
Graham growth formula:$536.94
Earnings power value (EPV):$117.55
Justified P/B:$95.10
Dividend discount (Gordon):$35.11
P/FFO, funds from operations:$191.29
Mid-cycle earnings:$184.44
Revenue multiple:$153.64
Analyst Consensus:Buy (13B / 12H / 2S)
Last Earnings Surprise:+1.09%

Valuation Metrics

P/E Ratio

21.20

ROE

23.1%

P/B Ratio

4.84

P/FCF

19.34

Gross Margin

61.1%

ROIC

19.7%

Profitability Radar

Value Creation (Economic Moat)

ROIC

19.7%

WACC

8.5%

ROIC − WACC

+11.2 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 15.14%
  • Price CAGR 13.41%
  • ROIC 19.7%
  • Gross Margin 61.1%
  • P/FCF 19.34
  • 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%
  • PEG Ratio 0.79
  • Earnings Quality (OCF/NI) 1.19
  • Share Dilution -0.8%
  • Piotroski F-Score 7/9

Failed (7)

  • P/B Ratio 4.84
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Analyst Consensus 48% Buy
  • Earnings Surprise avg 0.8%
  • Net Margin Trend 26.9% vs 27.2%

Unavailable (2)

  • Dividend Payout NaN%
  • Interest Coverage

Piotroski F-Score

7/9

Strong financial health

score
criteria

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. Michael J. RiderChief Legal Officer & Secretary67
Mr. Brett A. SandercockAdvisor58
Mr. Justin LeongChief Product Officer47
Mr. Aaron BloomerChief Financial Officer39
Mr. Alastair RobertsonChief Information Officer-
Ms. Sallilyn SchwartzChief 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

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

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

Latest News

Recent headlines for RMD, sourced from Markets Gazette.

  • 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.

via Markets Gazette