ResMed (RMD)
Health Care · $32.4B market cap · SEC CIK 0000943819
fundamentals score out of 100
Next reports on Oct 22, 2026, with analysts expecting $2.70 in earnings per share.
The case for RMD
- Generated $1.7B of free cash flow in FY2025, 32% of revenue.
- 27% of revenue drops through to net profit.
- Holds more cash ($1.4B) than long-term debt ($404M).
- Revenue growing 9.8% year over year.
- Has compounded revenue at 12.1% a year over five years.
- Return on equity of 24%.
The case against
- Weakest against its peers: price/sales of 5.7× is higher than 71% of Health Care companies.
- Its weakest area is the price trend (49/100): -18.1% over a year, +18.5% over three months, 40% of the way up its 52-week range.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 57 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 67 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 85 |
| Momentumhow the price has behaved lately | 49 |
| Stabilityhow violently it moves, what it owes and what it pays you | 75 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 21.3× |
|---|---|
| Price / book | 4.29× |
| Price / sales | 5.7× |
| Revenue growth (YoY) | +9.8% |
| EPS growth (YoY) | +9.8% |
| Gross margin | 61% |
| Operating margin | 33% |
| Net margin | 27% |
| Return on equity | 24% |
| Debt / equity | 0.10× |
| Current ratio | 3.10 |
| Dividend yield | 1.25% |
| Beta | 0.77 |
| 52-week range | $180.27 – $284.87 |
| Position in that range | 40% of the way up |
| 3-month return | +18.5% |
| 1-year return | -18.1% |
Five years of financials, as filed
Pulled from ResMed's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $5.1B | $4.7B | $4.2B | $3.6B | $3.2B |
| Gross profit | $3.1B | $2.7B | $2.4B | $2.0B | $1.8B |
| Operating income | $1.7B | $1.3B | $1.1B | $1.0B | $904M |
| Net income | $1.4B | $1.0B | $898M | $779M | $475M |
| Operating cash flow | $1.8B | $1.4B | $693M | $351M | $737M |
| Capital expenditure | $89.9M | $99.5M | $120M | $135M | $103M |
| Total assets | $8.5B | $7.1B | $6.9B | $6.7B | $4.7B |
| Total liabilities | $2.2B | $1.9B | $2.4B | $2.9B | $1.6B |
| Shareholder equity | $6.3B | $5.3B | $4.5B | $3.7B | $3.1B |
| Cash | $1.4B | $522M | $210M | $253M | $194M |
| Long-term debt | $404M | $663M | $1.2B | $1.8B | $668M |
| Free cash flow | $1.7B | $1.3B | $574M | $216M | $634M |
| Gross margin | 59.4% | 56.7% | 55.8% | 56.6% | 57.5% |
| Operating margin | 32.7% | 28.2% | 26.8% | 28.0% | 28.3% |
| Net margin | 27.2% | 21.8% | 21.3% | 21.8% | 14.8% |
| Diluted shares | 147M | 148M | 147M | 147M | 146M |
Share count is essentially flat over 4 years.
What ResMed says it does
We are a global leader in digital health and cloud-connected medical devices. We design innovative technology to empower people to live happier, healthier lives. Our artificial intelligence, or AI, powered digital health solutions, cloud-connected devices and intelligent software are designed to make home healthcare more personalized, accessible and effective. By enabling better care, our products improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems. Following our formation in 1989, we commercialized a continuous positive airway pressure, or CPAP, treatment for obstructive sleep apnea, or OSA, which was the first successful non-invasive treatment for OSA. CPAP systems deliver pressurized air, typically through a mask, to prevent collapse of the upper airway during sleep. Since the development of CPAP, we have expanded our business by developing or acquiring a number of…
Risk factors RMD lists in its 10-K
- Risks Related to Our Business and Industry
- Our inability to compete with new and existing technology may harm our business
- Consolidation in the healthcare industry and healthcare payment reform could have an adverse effect on our revenues and results of operations
- Our business, financial condition and results of operations could be harmed by the effects of pandemics, epidemics, or other public health crises
- We are subject to various risks relating to international activities that could affect our overall profitability
- We are subject to potential product liability claims that may exceed the scope and amount of our insurance coverage, which would expose us to liability for uninsured claims
- We are subject to potential professional services liability claims due to our recent acquisition of VirtuOx, which may exceed the scope and amount of our insurance coverage, which would expose us to liability for uninsured claims
- Our intellectual property may not protect our products, and/or our products may infringe on the intellectual property rights of third parties
- If we fail to source, develop and retain key employees, our business may suffer
- Our leverage and debt service obligations could adversely affect our business
- We are subject to new areas of direct healthcare oversight by federal government agencies due to our acquisitions of VirtuOx and Noctrix
- Risks Related to Manufacturing, IT Systems, Commercial Operations and Plans for Future Growth
- Disruptions in the supply of components from our suppliers could result in a significant reduction in sales and profitability
- We are increasingly dependent on information technology systems and infrastructure. Failed, substandard or delayed efforts to improve our IT System infrastructure may result in disruption to our business or materially