A Business at a Glance
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RESMED INC
RMD
$28.8B
Mkt Cap
$195.27
+1.76%
RESMED INC (RMD) has a current P/E ratio of 19.3, compared to its historical median P/E of 36.4. The stock is currently considered Cheap based on its historical valuation range.
RESMED INC (RMD) has a 5-year average return on invested capital (ROIC) of 21.2%. This indicates strong capital allocation and a potential competitive advantage.
RESMED INC (RMD) has a market capitalization of $28.3B. It is classified as a large-cap stock.
Yes, RESMED INC (RMD) pays a dividend with a trailing twelve-month yield of 1.20%. The company also returns capital through share buybacks, with a buyback yield of 2.12%.
Based on historical P/E analysis, RESMED INC (RMD) appears cheap. The current P/E of 19.3 is 47% below its historical median of 36.4. The estimated fair value CAGR (P/E method) is 18.8%.
RESMED INC (RMD) operates in the Surgical & Medical Instruments & Apparatus industry, within the Healthcare sector.
RESMED INC (RMD) reported annual revenue of $5.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
ResMed is a global leader in digital health and cloud-connected medical devices that designs innovative solutions to treat chronic diseases and keep people out of the hospital. The company operates in two segments: Sleep and Breathing Health, which develops and commercializes CPAP systems, ventilation devices, diagnostic products, mask systems, and headgear for treating obstructive sleep apnea, COPD, and other respiratory disorders; and Residential Care Software, which provides cloud-based management software and health applications enabling durable medical equipment providers, skilled nursing facilities, senior living communities, home health, and hospice providers to operate more effectively across various care settings. ResMed's business model combines hardware devices with cloud-connected software and data analytics to enable clinicians to manage patients efficiently while improving patient adherence and outcomes; the company distributes its products through wholly owned subsidiaries and independent distributors across more than 140 countries. The company's competitive moat is built on its pioneering CPAP technology, comprehensive product portfolio spanning devices and software, cloud-connected ecosystem enabling remote patient monitoring and clinical decision support, and integrated solutions that address the fragmented residential care market. ResMed serves patients with sleep apnea, COPD, and other chronic respiratory conditions, as well as healthcare providers and long-term care facilities seeking to improve operational efficiency and patient care delivery.
【Market expansion and margin accretion】 Management expects to continue driving high single-digit revenue growth through fiscal 2030, supported by awareness initiatives targeting primary care physicians, accelerating adoption of new fabric-based mask offerings, and expansion of AI-enabled patient engagement tools like the Dawn sleep coach algorithm. The company anticipates sustained gross margin expansion of double-digit basis points annually through 2030 despite geopolitical headwinds, underpinned by a pipeline of supply chain improvements and operational efficiencies. ResMed is investing in growth through R&D, tuck-in acquisitions, and targeted direct-to-consumer campaigns to build brand awareness and drive undiagnosed patients into the care pathway, while maintaining disciplined capital allocation through dividends and share repurchases. The company expects its new Indianapolis manufacturing facility to become operational in 2027, enabling faster delivery to approximately 90% of customers within two days.
| Metric | Target | Period |
|---|---|---|
| Gross margin | 62%-63% | FY2026 |
| Net interest income | approximately $15 million | Q4 FY2026 |
| Noctrix Health EPS impact | reduce non-GAAP EPS by approximately $0.02 | Q4 FY2026 |
| Share repurchase | $175 million | Q4 FY2026 |
| Gross margin accretion | double-digit basis points improvements each year | FY2027 through FY2030 |
Gross margin (FY2026): “Looking forward and subject to currency movements, we still expect gross margin to be in the range of 62%-63% for fiscal year 2026.”
Net interest income (Q4 FY2026): “As a result, we expect net interest income in Q4 FY 2026 will be approximately $15 million.”
Noctrix Health EPS impact (Q4 FY2026): “For Q4 FY 2026, we expect Noctrix Health to reduce non-GAAP EPS by approximately $0.02.”
Share repurchase (Q4 FY2026): “We plan to purchase shares to at least the value of $175 million during the fourth quarter of fiscal year 2026.”
Gross margin accretion (FY2027 through FY2030): “ResMed plans to have gross margin accretion, you know, through 2030 and double-digit basis points improvements each year from here to 2030”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.5B | 5.1B | 4.7B | 4.2B | 3.6B | 3.2B |
| Net Income | 1.5B | 1.4B | 1.0B | 898M | 779M | 475M |
| EPS | $10.43 | $9.51 | $6.92 | $6.09 | $5.30 | $3.24 |
| Free Cash Flow | 1.8B | 1.7B | 1.3B | 574M | 216M | 634M |
| ROIC | 27.5% | 26.2% | 20.0% | 20.0% | 22.8% | 16.8% |
| Gross Margin | 61.6% | 59.4% | 56.7% | 55.8% | 56.6% | 57.5% |
| Debt/Equity | 0.10 | 0.11 | 0.15 | 0.35 | 0.23 | 0.23 |
| Dividends/Share | $2.35 | $2.12 | $1.92 | $1.76 | $1.68 | $1.56 |
| Operating Income | 1.9B | 1.7B | 1.3B | 1.1B | 1.0B | 904M |
| Operating Margin | 34.2% | 32.7% | 28.2% | 26.8% | 28.0% | 28.3% |
| ROE | 23.4% | 25.9% | 22.7% | 24.0% | 25.0% | 17.6% |
| Shares Outstanding | 145M | 147M | 148M | 147M | 147M | 146M |
RESMED INC passes 9 of 9 quality checks, indicating strong fundamentals.
RESMED INC trades at 19.3x trailing earnings, compared to its 15-year median P/E of 36.4x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 15.9x vs a median of 31.5x. The company's 5-year average ROIC is 21.2% with a gross margin of 57.2%. Total shareholder yield (dividends + buybacks) is 3.3%. At current prices, the estimated annualized return to fair value is +17.1%.
RESMED INC (RMD) has a net profit margin of 27.2%. This is a strong margin indicating high profitability.
RESMED INC (RMD) generated $1.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
RESMED INC (RMD) has a debt-to-equity ratio of 0.11. This indicates a conservatively financed balance sheet.
RESMED INC (RMD) reported earnings per share (EPS) of $9.51 in its most recent fiscal year.
RESMED INC (RMD) has a return on equity (ROE) of 25.9%. This indicates the company generates strong returns for shareholders.
RESMED INC (RMD) has a 5-year average gross margin of 57.2%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for RESMED INC (RMD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
RESMED INC (RMD) has a book value per share of $40.52, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to continue driving high single-digit revenue growth through fiscal 2030, supported by awareness initiatives targeting primary care physicians, accelerating adoption of new fabric-based mask offerings, and expansion of AI-enabled patient engagement tools like the Dawn sleep coach algorithm. The company anticipates sustained gross margin expansion of double-digit basis points annually through 2030 despite geopolitical headwinds, underpinned by a pipeline of supply chain improvements and operational efficiencies. ResMed is investing in growth through R&D, tuck-in acquisitions, and targeted direct-to-consumer campaigns to build brand awareness and drive undiagnosed patients into the care pathway, while maintaining disciplined capital allocation through dividends and share repurchases. The company expects its new Indianapolis manufacturing facility to become operational in 2027, enabling faster delivery to approximately 90% of customers within two days.
Based on recent SEC filings and earnings calls, RESMED INC (RMD) has provided the following forward guidance: Gross margin: 62%-63% (FY2026); Net interest income: approximately $15 million (Q4 FY2026); Noctrix Health EPS impact: reduce non-GAAP EPS by approximately $0.02 (Q4 FY2026); Share repurchase: $175 million (Q4 FY2026); Gross margin accretion: double-digit basis points improvements each year (FY2027 through FY2030).