RMD
ResMed
$213.94
▼ 4.2%Updated Today 11:30 AM ET
RMD at a glance — five pillars scored 0–100 from real filed financials.
Overall: Strong · 75/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 24.8% over the last 12 months
Market Cap
$30.41B
P/E
21.28x
Forward P/E (est.)
18.27x
ROE
24.4%
Revenue Growth
10.3%
EPS Growth
16.5%
Profit Margin
27.4%
FCF Yield
3.8%
Debt / Equity
0.11x
ROIC
19.0%
Interest Coverage
70.26x
Current Ratio
3.01x
Dividend Yield
1.2%
Implied Growth (rev. DCF)
3.4%
Rating Score
75/100
ResMed (RMD) is a large-cap company in the Health Care Equipment industry, part of the Health Care sector of the S&P 500, with a market value around $30.41B.
In its latest reported year it generated about $5.15B in revenue and $1.40B in net profit.
Our model rates RMD Strong (75/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
57.3% average over the last 3 years
±1.0 pts around 57.4% across 9 years
grew in 8 of the last 8 year-over-year periods
positive in 9 of 9 years
19.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what RMD's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. RMD trades near $213.94, around its 50-day average ($201.71) and 200-day average ($239.14). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 68 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. RMD's is $5.68 (~2.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month RMD found buyers near $184.65 (support) and sellers near $209.68 (resistance); its 52-week range is $180.27–$293.81. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
12.6%
Revenue moved from $2.07B in 2017 to $5.15B in 2025, a 12.1% compound annual growth rate. The most recent year grew a steady 10.3% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
59.4%
Operating Margin
32.7%
Net Margin
27.2%
ROE
24.4%
ResMed keeps about 27.4% of each sales dollar as net profit, with a 59.4% gross margin and 32.7% operating margin. Return on equity is 24.4% and return on invested capital about 19.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$404.17M
Net Debt
-$1.26B
Net cash position
Net Debt / EBITDA
-0.75x
Debt / Equity
0.11x
Leverage: debt-to-equity is 0.1x, and operating profit covers interest about 70.3x, with a current ratio of 3.0x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $404.17M of total debt against $1.66B of cash.
Operating CF
$1.75B
Free Cash Flow
$1.66B
FCF Margin
32.3%
In the latest year ResMed produced about $1.75B of operating cash flow and $1.66B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.2%
Per share (latest FY)
$2.12
Total paid (latest FY)
$310.88M
History on record
9 years
dividend uses 19% of free cash flow
22% of net income paid out
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
21.28x
P/S
5.47x
P/B
7.28x
EV / EBITDA
—
RMD trades at 21.3x trailing earnings (about 18.3x on estimated forward earnings), 5.5x sales, and 7.3x book value. Reverse-engineering today's price implies the market expects roughly 3.4% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$279.63
Current price
$213.94
Starting FCF (latest 10-K)
$1.66B
Growth, years 1–5
10.3%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where RMD sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How RMD stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (324 S&P 500 companies), RMD ranks #6 of 324 by our overall rating. It trades at a discount versus the sector on earnings (21.3x P/E vs. 27.3x median) with a higher return on equity (24.4% vs. 14.1%) and faster revenue growth (10.3% vs. 7.6%).
P/E vs sector
21.3x
median 27.3x
ROE vs sector
24.4%
median 14.1%
Growth vs sector
10.3%
median 7.6%
Sector rank
#6
of 324 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $213.94 today · expected CAGR -1% – 9%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.66B | $6.23B | $6.85B | $7.53B | $8.29B |
| Net income | $1.53B | $1.68B | $1.85B | $2.03B | $2.24B |
| EPS | $10.75 | $11.83 | $13.01 | $14.31 | $15.74 |
| Share price (low) | $139.80 | $153.78 | $169.15 | $186.07 | $204.68 |
| Share price (high) | $225.83 | $248.41 | $273.25 | $300.57 | $330.63 |
| CAGR (low–high) | -35% / 6% | -15% / 8% | -8% / 8% | -3% / 9% | -1% / 9% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for RMD:
- Revenue is growing 10.3% a year, a sign of real demand.
- High net margins (27.4%) point to pricing power or efficiency.
- Strong return on equity (24.4%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.1x) lowers risk.
- Our model's overall read is Strong (75/100).
The case against RMD:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: ResMed is a large-cap health care business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 21.3x earnings, which our model scores Strong (75/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 25 Wall Street analysts covering RMD recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-14 pts of buy ratings).
Latest SEC Filings
RMD's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
RMD — frequently asked questions
Is RMD a good stock to buy?
We don't give buy or sell advice. Our model rates ResMed Strong (75/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is RMD's rating on The Stocks School?
ResMed currently scores 75/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does RMD's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from ResMed's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for RMD calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this RMD analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell RMD. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.