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Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh
(Sydney:RMD)
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Rating:76Outperform
Price Target:
AU$34.00
â–²(7.87% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by strong financial quality (high margins, low leverage, strong ROE and free cash flow) and constructive earnings-call guidance/results. These positives are partially offset by weak technicals (price well below key moving averages with negative MACD) and only moderate valuation support.
Positive Factors
High margins & operating profitability
ResMed’s persistently high gross, net and EBIT margins reflect durable pricing power, scale and favorable product mix. These margins support sustained reinvestment in R&D, dividends and buybacks, preserving long-term return on capital and resilience through cycles.
Negative Factors
Rising operating expenses
Material increases in SG&A and R&D as a share of revenue can erode operating leverage if top-line momentum moderates. Persistent elevated spending risks compressing margin expansion and reduces incremental free cash flow unless investments deliver sustained higher growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & operating profitability
ResMed’s persistently high gross, net and EBIT margins reflect durable pricing power, scale and favorable product mix. These margins support sustained reinvestment in R&D, dividends and buybacks, preserving long-term return on capital and resilience through cycles.
Read all positive factors
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh (RMD) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$42.72B
Dividend Yield0.95%
Average Volume (3M)1.08M
Price to Earnings (P/E)19.1
Beta (1Y)0.67
Revenue Growth8.62%
EPS Growth14.49%
CountryAU
Employees10,600
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.18
Shares Outstanding1,450,563,800
10 Day Avg. Volume805,465
30 Day Avg. Volume1,076,544
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)6.36
Price to Sales (P/S)7.38
P/FCF Ratio23.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$40.00Price Target Upside26.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.21
Revenue Forecast (FY)AU$5.99B
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Business Overview & Revenue Model
Company Description
ResMed Inc. designs, manufactures, and markets innovative medical devices and sophisticated cloud-based software platforms for the global healthcare industry, operating through its Sleep and Respiratory Care, and Software as a Service divisions. W...
How the Company Makes Money
ResMed primarily makes money by selling sleep and respiratory care products and associated recurring-use components, alongside revenue from software and digital health offerings.
1) Device and hardware sales: A key revenue stream is the sale of m...
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operating and financial picture: healthy revenue growth (11% headline, 8% constant currency), strong gross margin expansion (+290 bps YoY), double-digit EPS growth (~21%), robust free cash flow and continued share repurchases/dividends. Strategic highlights include successful mask innovations with measurable adherence gains (AirTouch N30i +6% 90-day compliance), continued AirSense 11 rollouts, clinical education traction, favorable GLP-1-related demand signals, and the tuck-in acquisition of Noctrix to expand into RLS. Noted challenges include rising SG&A and R&D spend, component/fuel cost pressures, a $10M minority investment write-down, modest near-term EPS dilution from Noctrix, and reimbursement/channel variability that could constrain adoption in pockets. Overall, positives around margin expansion, cash generation, product adoption, and long-term strategic positioning outweigh the identified headwinds.Positive Updates
Revenue Growth
Group revenue of $1.43 billion, up 11% headline and 8% on a constant currency basis versus prior year; Americas devices +6% and masks/other +12% globally (masks/other +14% in Americas excluding VertuOx).
Negative Updates
Expense Growth and Margin Pressure Areas
SG&A increased 14% headline (9% constant currency) and rose to 19.5% of revenue versus 19% prior year; R&D increased 12% headline (8% CC) though R&D as a percent of revenue declined to 6% from 6.5%.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Group revenue of $1.43 billion, up 11% headline and 8% on a constant currency basis versus prior year; Americas devices +6% and masks/other +12% globally (masks/other +14% in Americas excluding VertuOx).
Read all positive updates
Company Guidance
The company reiterated clear fiscal‑year guidance and multi‑year targets: for FY26 it expects gross margin around 62%–63%, SG&A of 19%–20% of revenue and R&D of 6%–7% of revenue, an effective tax rate of 21%–23%, and Q4 net interest income of ~ $15M (including a $9M/quarter net‑investment hedge going forward); management also affirmed a five‑year outlook of high single‑digit revenue growth with earnings growth outpacing revenue and plans for continued gross‑margin accretion through 2030 (double‑digit basis‑point improvements annually). In Q3 the business delivered $1.43B of revenue (11% headline / 8% constant currency), 62.8% gross margin (+290 bps YoY, +50 bps sequential), operating margin of 36.7% (+180 bps YoY) with operating profit +18%, non‑GAAP diluted EPS +21% and net income +20%; cash flow from operations was $554M (free cash flow cited as $520M) with above‑100% free‑cash‑flow conversion, ended the quarter with $1.7B cash, $664M gross debt ($996M net cash), declared a $0.60 quarterly dividend, repurchased $175M (≈673k shares) and plans to repurchase at least $175M in 2026, and expects the announced Noctrix acquisition ($340M consideration, ~$24M current annual run‑rate) to be included on close and to reduce non‑GAAP EPS by about $0.02 in Q4.Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.55B | 5.15B | 4.69B | 4.22B | 3.58B | 3.20B |
| Gross Profit | 3.39B | 3.05B | 2.66B | 2.36B | 2.02B | 1.84B |
| EBITDA | 2.17B | 1.92B | 1.53B | 1.36B | 1.18B | 1.10B |
| Net Income | 1.52B | 1.40B | 1.02B | 897.56M | 779.44M | 474.50M |
Balance Sheet | ||||||
| Total Assets | 8.83B | 8.17B | 6.87B | 6.75B | 5.10B | 4.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.67B | 1.21B | 238.36M | 227.89M | 273.71M | 295.28M |
| Total Debt | 847.66M | 851.81M | 899.21M | 1.58B | 917.55M | 793.72M |
| Total Liabilities | 2.30B | 2.21B | 2.01B | 2.62B | 1.74B | 1.84B |
| Stockholders Equity | 6.53B | 5.97B | 4.86B | 4.13B | 3.36B | 2.89B |
Cash Flow | ||||||
| Free Cash Flow | 1.76B | 1.65B | 1.29B | 559.30M | 195.11M | 619.89M |
| Operating Cash Flow | 1.90B | 1.75B | 1.40B | 693.30M | 351.15M | 736.72M |
| Investing Cash Flow | -296.20M | -200.04M | -269.78M | -1.16B | -229.92M | -158.46M |
| Financing Cash Flow | -911.93M | -606.25M | -1.12B | 422.87M | -128.36M | -764.63M |
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Technical Analysis
Negative
31.52
Price Trends
28.50
Positive
30.76
Negative
34.52
Negative
Market Momentum
0.51
Negative
46.54
Neutral
44.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RMD, the sentiment is Negative. The current price of 31.52 is above the 20-day moving average (MA) of 28.86, above the 50-day MA of 28.50, and below the 200-day MA of 34.52, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 44.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RMD.
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Risk Analysis
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh disclosed 38 risk factors in its most recent earnings report. Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$42.72B | 19.12 | 24.41% | 0.95% | 8.62% | 14.49% | |
67 Neutral | AU$131.67M | 33.79 | 4.37% | ― | 36.43% | ― | |
55 Neutral | AU$107.35M | -39.67 | -5.31% | ― | 18.21% | 65.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | AU$2.37B | -11.91 | -890.76% | ― | -0.80% | -249.48% | |
43 Neutral | AU$231.74M | -16.67 | -4.47% | ― | -21.29% | -167.20% | |
42 Neutral | AU$45.95M | 575.00 | 0.48% | ― | 24.45% | ― |
* Healthcare Sector Average
AU:RMD
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh
28.57
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Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Corporate Events
ResMed CEO Farrell Exercises Options and Trims Stake Under 10b5-1 Plan
Jul 9, 2026
ResMed Inc. reported that Chairman and CEO Michael J. Farrell exercised stock options for 4,991 shares of common stock at an exercise price of $146.34 per share under a pre-arranged Rule 10b5-1 trading plan adopted in late 2024. Following the opti...
ResMed adjusts ASX CDI levels amid NYSE share activity
Jul 2, 2026
ResMed Inc, a medical technology company specializing in sleep and respiratory care devices and related cloud-based software solutions, maintains a dual listing with common stock traded on the NYSE and CHESS Depositary Interests quoted on the ASX ...
ResMed CEO Farrell Exercises Options and Sells Shares Under 10b5-1 Plan
Jun 9, 2026
ResMed Inc. reported that Chairman and CEO Michael J. Farrell exercised options to acquire 4,991 shares of ResMed common stock at an exercise price of $146.34 per share and subsequently sold the same number of shares in a transaction executed on J...
ResMed General Counsel Trims Holdings to Cover RSU Tax Liability
Jun 3, 2026
ResMed Inc.’s Global General Counsel, Michael J. Rider, has reported a disposition of 268.742 shares of ResMed common stock on June 1, 2026, to cover tax withholding obligations arising from the vesting of previously granted restricted stock...
ResMed Files 2025 Conflict Minerals Disclosure Under SEC Rules
May 26, 2026
ResMed Inc. filed a Specialized Disclosure Report on Form SD for the 2025 calendar year in compliance with the U.S. Securities and Exchange Commission’s conflict minerals rule, covering materials such as tin, tantalum, tungsten, and gold use...
ResMed CEO Farrell Exercises Options and Trims Stake Under 10b5-1 Plan
May 11, 2026
ResMed Inc. Chairman and CEO Michael J. Farrell has reported a series of stock option exercises and share sales conducted under a pre-arranged Rule 10b5-1 trading plan adopted in late 2024. Farrell exercised options to acquire 4,991 shares of ResM...
ResMed Updates CDI Count Amid Routine Share Transfers, Issuances and Buybacks
May 3, 2026
ResMed Inc. reported its April 2026 CHESS Depositary Interest (CDI) figures, showing a slight decrease in CDIs on issue on the ASX to 564,292,650, largely due to net transfers between CDIs and common stock traded on the NYSE. The company also reco...
ResMed Files March 2026 Quarterly Report Detailing Capital Structure and Compliance Status
May 3, 2026
ResMed Inc. has filed its quarterly report on Form 10‑Q with the U.S. Securities and Exchange Commission for the period ended March 31, 2026, confirming it has met all required reporting and data submission obligations over the past year. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.