RMD
ResMed
$188.45
▼ 0.1%Updated Today 6:01 PM ET
▼ Down 24.8% over the last 12 months
Market Cap
$27.36B
P/E
18.02x
Forward P/E (est.)
15.47x
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)
2.8%
Rating Score
75/100
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 $188.45, below its 50-day average ($207.91) and 200-day average ($242.98). Price below both averages is a downtrend — momentum is against buyers for now.
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 35 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 $6.34 (~3.4% 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 $180.27 (support) and sellers near $211.74 (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 1.2× 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.
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 $27.36B.
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.
4Y CAGR
12.6%
Revenue moved from $3.20B in 2021 to $5.15B in 2025, a 12.6% 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.
P/E
18.02x
P/S
5.47x
P/B
6.17x
EV / EBITDA
14.27x
RMD trades at 18.0x trailing earnings (about 15.5x on estimated forward earnings), 5.5x sales, and 6.2x book value. Reverse-engineering today's price implies the market expects roughly 2.8% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. 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 (59 S&P 500 companies), RMD ranks #2 of 59 by our overall rating. It trades at a discount versus the sector on earnings (18x P/E vs. 25.4x median) with a higher return on equity (24.4% vs. 14.9%) and faster revenue growth (10.3% vs. 7.9%).
P/E vs sector
18x
median 25.4x
ROE vs sector
24.4%
median 14.9%
Growth vs sector
10.3%
median 7.9%
Sector rank
#2
of 59 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 59 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)
$169.70 – $277.69
vs. $188.45 today · expected CAGR -2% – 8%
| 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 | $10.54 | $11.59 | $12.75 | $14.02 | $15.43 |
| Share price (low) | $115.91 | $127.50 | $140.25 | $154.27 | $169.70 |
| Share price (high) | $189.67 | $208.63 | $229.50 | $252.45 | $277.69 |
| CAGR (low–high) | -38% / 1% | -18% / 5% | -9% / 7% | -5% / 8% | -2% / 8% |
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 18.0x earnings, which our model scores Strong (75/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
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.