RMD
RESMED INC
Next earnings Jul 29, 2026 (after close) · consensus $2.92 EPS, $1.47B rev
Last earnings +0.9% on 2026-04-30
$209.63
▲ +5.64%$209.63▼ -17.04%
over 1Y
L $182.82H $291.49
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+5.6%
1W+5.6%
1M+14.7%
3M-6.2%
YTD-13.9%
1Y-17.0%
Buy
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 25 analysts
Buy
High-quality sleep-apnea compounder: 10% revenue growth, 37% EPS growth, 23.5% ROE, near debt-free, at a reasonable 19.8x P/E.
Revenue (FY2025) $5.15B · FY2025
The read
Quality fundamentals and an attractive price line up (~72% below fair value) — the rarer case where both the business and the entry look good.
ResMed is a global leader in respiratory and sleep-disordered-breathing devices and connected-care software, and the numbers show a durable compounder firing on all cylinders. Revenue has climbed every year from $3.20B in FY2021 to $5.15B in FY2025 (+9.8% YoY), while net income has nearly tripled over the same span to $1.40B (+37.2% YoY) and diluted EPS reached $9.51 (+37.4%). Profitability is excellent and improving: gross margin of 59.4%, operating margin of 32.7%, and net margin of 27.2%, with gross profit up 15% and operating income up 27.7% — earnings are growing materially faster than the topline, signaling real operating leverage rather than just volume.
The balance sheet is a fortress. Stockholders' equity of $5.97B (+22.7%) dwarfs total liabilities of $2.21B for a conservative liabilities/equity of 0.37x, long-term debt is modest at $658M (down 5.6%), and cash ballooned to $1.21B (up over 4x). Returns on capital are strong at 23.5% ROE. Cash generation backs the accounting: operating cash flow of $1.75B (+25.0%) against just $89.9M of capex makes this a high-FCF business that funded $311M of dividends and $300M of buybacks while still building cash. The MD&A confirms management is reinvesting — $331M (6.4% of revenue) into R&D behind products like AirSense 11 and a 2030 growth strategy spanning Sleep & Breathing Health and Residential Care Software.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 3:05 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $3.20B | $3.58B | $4.22B | $4.69B | $5.15B |
| Gross profit | $1.84B | $2.02B | $2.36B | $2.66B | $3.05B |
| Operating income | $904M | $1.00B | $1.13B | $1.32B | $1.69B |
| Net income | $475M | $779M | $898M | $1.02B | $1.40B |
| Diluted EPS | $3.24 | $5.30 | $6.09 | $6.92 | $9.51 |
| Net margin | 14.8% | 21.8% | 21.3% | 21.8% | 27.2% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$29.9B
EV / EBITDA15.9
EV / Sales5.8
EV / FCF18.0
P / FCF18.3
PEG (trailing)0.59
Earnings yield4.6%
FCF yield5.5%
Quality & risk
ROIC (est.)20.1%
Free cash flow$1.66B
Total debt$668M
Net cash$541M
Altman Z-Score10.99 safe
Piotroski F-Score8/9
Capital returns
Buyback yield1.0%
Dividend yield (est.)1.0%
Shareholder yield2.0%
Shares Δ YoY-0.4%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
Recent filings
all on EDGAR ↗SCHEDULE 13G/AFiling2026-07-01open ↗4Period ending 2026-06-082026-06-09open ↗144Filing2026-06-08open ↗4Period ending 2026-06-012026-06-03open ↗144Filing2026-05-27open ↗SDFiling2026-05-26open ↗4Period ending 2026-05-072026-05-11open ↗144Filing2026-05-07open ↗3Period ending 2026-05-042026-05-04open ↗4Period ending 2026-05-042026-05-04open ↗10-QPeriod ending 2026-03-312026-05-01open ↗8-KPeriod ending 2026-04-242026-04-30open ↗
Frequently asked
- Is RESMED INC (RMD) a buy?
- RMD currently carries a Buy rating with 4/5 conviction, derived from its latest SEC filings. High-quality sleep-apnea compounder: 10% revenue growth, 37% EPS growth, 23.5% ROE, near debt-free, at a reasonable 19.8x P/E.
- What is RMD's fair value?
- A Modified-Graham model based on RMD's SEC fundamentals estimates a fair value of about $361.38. It is an estimate from reported earnings, not a price target.
- Is RMD overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, RMD currently appears undervalued relative to its SEC-grounded earnings power.
- What is RESMED INC's quality score?
- RMD scores 74.85379402510723/100 (grade B) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000943819, latest 10-Q filed 2026-05-01) · EODHD · Proprietary analysis · as of 6/21/2026, 7:05:42 PM.
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