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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:77Outperform
Price Target:
AU$36.00
▲(31.24% Upside)
Action:Reiterated
Date:08/17/26
Overall score is driven primarily by strong financial performance (high margins, growing earnings, and a low-leverage balance sheet). The latest earnings call supports the score with solid FY2027 growth/EPS guidance and large shareholder return plans, partially offset by Astral-related headwinds and life-support weakness. Technicals are supportive but somewhat stretched short-term, while valuation is reasonable but not clearly cheap and the dividend yield is modest.
Positive Factors
Strong revenue and profitability
ResMed has demonstrated durable earnings power through sustained revenue expansion, high gross margins and strong net profitability. This provides internal funding for innovation, supports resilience against operating pressures and indicates meaningful scale advantages.
Negative Factors
Astral safety action reduces growth
The Astral field safety action removes an established product contribution and requires remediation, creating a direct drag on revenue and earnings. It may also increase execution, regulatory and customer-replacement risks until the issue is resolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profitability
ResMed has demonstrated durable earnings power through sustained revenue expansion, high gross margins and strong net profitability. This provides internal funding for innovation, supports resilience against operating pressures and indicates meaningful scale advantages.
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$45.63B
Dividend Yield0.98%
Average Volume (3M)1.08M
Price to Earnings (P/E)21.5
Beta (1Y)0.63
Revenue Growth4.74%
EPS Growth4.44%
CountryAU
Employees10,600
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.18
Shares Outstanding1,442,523,100
10 Day Avg. Volume805,465
30 Day Avg. Volume1,076,544
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)4.42
Price to Sales (P/S)5.03
P/FCF Ratio17.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$38.84Price Target Upside41.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.21
Revenue Forecast (FY)AU$5.82B
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 makes money primarily by selling (1) sleep and respiratory care hardware and (2) recurring-use consumables, and by earning (3) subscription and SaaS revenue from its software businesses.
1) Sleep & respiratory care devices (equipment sales...
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial achievements — double-digit EPS growth, gross margin expansion, robust free cash flow, sizable shareholder returns, global product rollouts and digital/clinical engagement gains — while transparently addressing near-term challenges including the Astral field safety action, material declines in life support device revenue, elevated R&D/SG&A investment, and short-term cash flow and margin headwinds from inflation and portfolio transitions. Management provided forward-looking guidance (FY2027 revenue growth of 5%–7% core, reported revenue $5.75–5.85B, non-GAAP EPS $12–12.25) that incorporates these actions and commitments to continue investing in innovation and returning capital to shareholders.Positive Updates
Quarterly Revenue Growth
Q4 group revenue of $1.5 billion, a 9% headline increase and 8% constant-currency growth versus prior-year quarter.
Negative Updates
Astral Field Safety Action and Financial Impact
Took a $42 million Q4 provision for Astral field safety actions; suspended Astral sales for FY2027 resulting in an estimated ~$75 million revenue headwind (~130 basis points) and approximately $0.15 EPS impact embedded in guidance.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q4 group revenue of $1.5 billion, a 9% headline increase and 8% constant-currency growth versus prior-year quarter.
Read all positive updates
Company Guidance
Guidance for fiscal 2027 calls for core constant‑currency revenue growth of 5%–7% (reported revenue $5.75–$5.85 billion, assuming ~50 bps FX headwind), which already includes an approximate 130‑bp (≈$75 million) headwind from suspending Astral sales; non‑GAAP EPS is guided to $12.00–$12.25 (≈7%–10% reported growth), which excluding ~ $0.30 dilution from the MatrixCare divestiture and ~$0.20 from the Noctrix acquisition implies core EPS growth of ~12%–14% (the Astral suspension is roughly a $0.15 EPS headwind); the company expects low‑double‑digit gross margin improvement, a slight increase in operating margin, RCS to deliver high‑single‑digit revenue growth, capital expenditures of $160–$180 million, $1.5 billion of share repurchases (including a $450 million ASR) and total shareholder returns north of $1.85 billion, and Q1 seasonality with a slight year‑over‑year dip in gross margin and operating expenses roughly flat to Q4.Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
80
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.78B | 5.15B | 4.69B | 4.22B | 3.58B |
| Gross Profit | 3.48B | 3.05B | 2.66B | 2.36B | 2.02B |
| EBITDA | 2.21B | 1.92B | 1.53B | 1.36B | 1.18B |
| Net Income | 1.56B | 1.40B | 1.02B | 897.56M | 779.44M |
Balance Sheet | |||||
| Total Assets | 8.96B | 8.17B | 6.87B | 6.75B | 5.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 1.21B | 238.36M | 227.89M | 273.71M |
| Total Debt | 825.56M | 851.81M | 899.21M | 1.58B | 917.55M |
| Total Liabilities | 2.38B | 2.21B | 2.01B | 2.62B | 1.74B |
| Stockholders Equity | 6.58B | 5.97B | 4.86B | 4.13B | 3.36B |
Cash Flow | |||||
| Free Cash Flow | 1.69B | 1.65B | 1.29B | 559.30M | 195.11M |
| Operating Cash Flow | 1.85B | 1.75B | 1.40B | 693.30M | 351.15M |
| Investing Cash Flow | -557.17M | -200.04M | -269.78M | -1.16B | -229.92M |
| Financing Cash Flow | -1.03B | -606.25M | -1.12B | 422.87M | -128.36M |
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Technical Analysis
Positive
27.43
Price Trends
29.06
Positive
29.55
Positive
33.14
Negative
Market Momentum
0.73
Negative
62.48
Neutral
92.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RMD, the sentiment is Positive. The current price of 27.43 is below the 20-day moving average (MA) of 29.76, below the 50-day MA of 29.06, and below the 200-day MA of 33.14, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 92.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$45.63B | 21.50 | 23.88% | 1.24% | 4.74% | 4.44% | |
67 Neutral | AU$120.92M | 31.03 | 4.37% | ― | 36.43% | ― | |
55 Neutral | AU$72.52M | -27.27 | -5.31% | ― | 18.21% | 65.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | AU$223.47M | -16.07 | -4.47% | ― | -21.29% | -167.20% | |
42 Neutral | AU$44.95M | 562.50 | 0.48% | ― | 24.45% | ― | |
40 Underperform | AU$2.18B | -11.26 | -890.76% | ― | -0.80% | -249.48% |
* Healthcare Sector Average
AU:RMD
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh
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Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Corporate Events
ResMed Confirms Status as Large Accelerated Filer in 2026 Form 10-K
Aug 13, 2026
ResMed Inc. has filed its annual report on Form 10-K for the fiscal year ended June 30, 2026, confirming it remains a well-known seasoned issuer in full compliance with U.S. securities reporting requirements. The filing notes that the company is n...
ResMed Updates July CDI Balances Amid Dual-Listing Share Movements
Aug 5, 2026
ResMed Inc. has released its July 2026 statement of CHESS Depositary Interests on issue, outlining changes in its ASX-listed CDIs that represent NYSE-traded common stock. The filing details movements between CDIs and common shares, reflecting ongo...
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...
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.