ResMed Inc.

ResMed Inc.

RMDยทNYSE

$186.46

+0.011%
HealthcareMedical - Devices

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company 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; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME)to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; and HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies. The company markets its products primarily to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force in approximately 140 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

At a Glance

Live Snapshot
Market Cap$27.05B
EPS9.5500
P/E Ratio19.52
Earnings Date07/30/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 19.5).

Valuation inputs: P/E 19.5, earnings yield +5.1%, momentum +0.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +23.5%, ROIC +19.6%).

Profitability stack: net margin +27.2%, ROE +23.5%, ROIC +19.6%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +27.0%, momentum +0.0%, net margin +27.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

rmd

ResMed Inc. Market vs Earnings Trajectory

RMD ยท NYSE

Loading price and EPS data...

ResMed Inc.

ResMed Inc. Fair Value Envelope

RMD ยท NYSE

Our analysis suggests that RMD has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $186.46, this represents a potential HIDDEN relative to our calculated worth for ResMed Inc..

Intrinsic Value
Current Price: $186.46
3Y+79.0%
5Y+122.0%
10Y+280.0%
3Y+44.0%
5Y+74.0%
10Y+180.0%
3Y+80.0%
5Y+125.0%
10Y+297.0%
3Y+399.0%
5Y+118.0%
10Y+220.0%
3Y+752.0%
5Y+139.0%
10Y+246.0%
3Y+60.0%
5Y+78.0%
10Y+151.0%
ResMed Inc.

ResMed Inc. Profit Bridge

RMD ยท NYSE
Revenue5.15B
Cost of Goods Sold (2.09B)
Gross Profit3.05B
Operating Expenses (1.37B)
Operating Income1.69B
Interest Expense (12.61M)
Other Income/Expense-7.80M
Pretax Income1.68B
Income Tax (276.84M)
Net Income1.40B
Net Income
1.40B

Profitability Analysis

Gross Margin

59.4%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

32.7%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

27.2%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

16.5%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

59.36%
Gross Profit Margin
5%
3Y+5.0%
5Y+2.0%
10Y+2.0%
32.75%
Operating Profit Margin
16%
3Y+17.0%
5Y+20.0%
10Y+40.0%
27.22%
Net Profit Margin
25%
3Y+25.0%
5Y+29.0%
10Y+42.0%
23.47%
Return on Equity
12%
3Y+1.0%
5Y-6.0%
10Y+13.0%
17.14%
Return on Assets
15%
3Y+12.0%
5Y+26.0%
10Y+58.0%
19.56%
Return on Invested Capital
10%
3Y+7.0%
5Y+14.0%
10Y+66.0%
RMD

ResMed Inc. Cash Conversion Engine

RMD ยท NYSE
Net Income1.40B
Depreciation & Amortization235.81M
Stock-Based Compensation91.66M
Change in Working Capital16.74M
Others6.66M
Capital Expenditures-89.86M
Free Cash Flow1.66B

Cash Flow Quality Analysis

FCF Conversion Rate

118.6%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

5.1%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+29.2%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$16.74M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

rmd

ResMed Inc. Funding & Solvency Profile

RMD ยท NYSE
Cash & Cash Equivalents1.66B
Net Receivables998.84M
Inventory911.88M
Other Current Assets492.84M
Total Current Assets4 B
Property, Plant & Equipment728.57M
Goodwill & Intangible Assets3.47B
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets729 M
Total Assets
8.78B

Financial Health Analysis

Current Ratio

3.01x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.35x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

3 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

46% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

rmd

ResMed Inc. Street Expectations Map

RMD ยท NYSE

Wall Street analysts project that RMD stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 281.29, with estimates ranging from a low of 225.00 to a high of 345.00.

Lowest Target
225.00
20.67%
Consensus Target
281.29
50.86%
Highest Target
345.00
85.03%

The consensus 1-year price target stands at 281.29, with estimates ranging from a low of 225.00 to a high of 345.00.

Analyst Consensus Analysis

Upside Potential

+50.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

42.7% spread

Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

rmd

ResMed Inc. Insider Positioning

RMD ยท NYSE

During the last 12 months, insiders have sold $30.71M worth of RMD shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

18.0K

4.09M

Net Activity

-4.1M

-$4.09M

3-6 Months

Bought

0

0.00

Sold

24.1K

6.16M

Net Activity

-6.2M

-$6.16M

6-9 Months

Bought

0

0.00

Sold

37.7K

10.00M

Net Activity

-10.0M

-$10.00M

9-12 Months

Bought

0

0.00

Sold

39.5K

10.47M

Net Activity

-10.5M

-$10.47M

Top Buyers

No buying activity

Top Sellers

1
FMJ

Farrell Michael J.

Director, Officer: Chairman And Ceo

78.0K sharesโ€ข12 transactions

$20.08M

2
SB

Sandercock Brett

Officer: Chief Financial Officer

20.9K sharesโ€ข10 transactions

$5.44M

3
FPC

Farrell Peter C

Director

14.9K sharesโ€ข8 transactions

$3.71M

4
HJ

Hernandez John

Director

2.6K sharesโ€ข1 transactions

$739K

5
DWJ

De Witte Jan

Director

2.5K sharesโ€ข2 transactions

$646K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $30.71M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$4.09M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.27%
Dividend Yield
7%
3Y+32.0%
5Y+32.0%
10Y-44.0%
ย 

rmd Dividend History

RMD
10Y CAGR +7%
Latest $0.6
Annual $2.4
5 year growth trend
Last Period: +0%