ResMed (RMD)

Health Care · $32.7B market cap · SEC CIK 0000943819

Next reports on Jan 27, 2027, with analysts expecting $3.02 in earnings per share.

52-week range $180.27 to $277.67. 16% below its 52-week high and 30% above its low.

The case for RMD

• Earns 25% back on shareholder equity.
• Generated $1.6B of free cash flow in FY2026, 29% of revenue.
• 28% of revenue drops through to net profit.
• Holds more cash ($1.5B) than long-term debt ($399M).
• Revenue growing 9.0% year over year.
• Reasonably priced for its growth: 20.5× earnings, where 16% a year of growth plus a 1.2% dividend would justify about 34×.

The case against

• Weakest against its peers: price/sales of 5.7× is higher than 67% of Health Care companies.
• Its weakest area is the price trend (53/100): −6.3% over a year, +7.1% over three months, 16% below its 52-week high.

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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from ResMed's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

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

• 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
• 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
• Failure to identify, execute, and integrate acquired businesses into our operations successfully, or challenges related to the Company's strategic initiatives, including divestitures
• If we are unable to support our continued growth or achieve expected operating efficiencies, our business could suffer
• If our software products fail to perform properly or if we fail to develop enhancements, we could lose customers, become subject to service performance or warranty claims and our sales could decline
• Climate change and natural disasters, or other events beyond our control, could negatively impact our business operations and financial condition
• Government and private insurance plans may not adequately reimburse our customers for our products, which could result in reductions in sales or selling prices for our products
• Our business activities are subject to extensive regulation, and any failure to comply could have a material adverse effect on our business, financial condition, or results of operations
• Product sales, introductions or modifications may be delayed or canceled as a result of FDA regulations or similar foreign regulations, which could cause our sales and profits to decline
• Off-label marketing of our products could result in substantial penalties
• Laws regulating consumer contacts could adversely affect our business operations or create liabilities
• We are subject to ongoing tax audits by various local tax authorities, some of which are aggressively pursuing taxes on transferred or discontinued local operations
• Sustainability and corporate governance issues are constantly evolving, leading to additional investment and expense, and may have an adverse effect on our business, financial condition and results of operations and reputation
• Our quarterly operating results are subject to fluctuation for a variety of reasons
• Our ability to sustain or grow dividends or repurchase shares is subject to board discretion
• Delaware law and provisions in our charter could make it difficult for another company to acquire us

Filings

Other Health Care companies