ResMed Inc.

Valuation Analysis

About the Company

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications to diagnose, treat, and manage respiratory disorders in the United States and internationally. The company operates in two segments, Sleep and Breathing Health, and Residential Care Software. It offers sleep recorders for the diagnosis and titration of sleep apnea in sleep clinics, hospitals, and at home, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry; and EasyCare Tx, a sleep lab solution. The company also provides AirView, a cloud-based s

ResMed Inc. Stock at a Glance

ResMed Inc. (RMD) is currently trading at $194.78 with a market capitalization of $28.3B. The trailing P/E ratio stands at 18.8x, with a forward P/E of 16.04x. The 52-week range spans from $180.27 to $293.81; the current price is 33.7% below the yearly high. Year-over-year revenue growth stands at +10.8%. The net profit margin stands at 27.44%.

💰 Dividend

ResMed Inc. pays an annual dividend of $2.40 per share, representing a yield of 1.23%. The payout ratio stands at 22.47%.

📊 Analyst Rating

15 analysts rate ResMed Inc. (RMD) on consensus: Buy. The average price target is $270.60, implying +38.93% from the current price. Analyst price targets range from $180.00 to $340.00.

ResMed Inc.: The Investment Case in Detail

ResMed Inc. (RMD) operates in the Healthcare — specifically Medical Instruments & Supplies — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.8% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 62.18%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 25.25% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

Valuation in Context

The PEG ratio at 1.15 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The forward P/E of 16.04x is meaningfully below the trailing 18.8x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 38.93% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (9.44%).

Trading Data

💵 Dividend Info

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