Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh (AU:RMD)
ASX:RMD
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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:71Outperform
Price Target:
AU$36.00
â–²(11.94% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by strong financial quality (high margins, low leverage, strong cash conversion) and a positive earnings-call outlook with clear margin targets and sizable capital returns. This is tempered by weak technicals (price below key moving averages and negative MACD) and only moderate valuation support (P/E ~21.9, ~1.06% yield).
Positive Factors
High cash generation & conversion
Sustained strong cash conversion (OCF ~1.53x net income; FCF ~0.93x) underpins durable self‑funding for R&D, tuck‑in M&A, dividends and >$600M planned buybacks. High cash quality reduces refinancing risk and supports capital returns even in slower revenue periods.
Negative Factors
Slower recent top‑line growth
A deceleration to low single‑digit TTM revenue growth suggests structural headwinds or market saturation in certain geographies. Slower top‑line constrains absolute earnings growth and increases reliance on margin expansion and buybacks to drive EPS, limiting organic upside.
Read all positive and negative factors
Positive Factors
Negative Factors
High cash generation & conversion
Sustained strong cash conversion (OCF ~1.53x net income; FCF ~0.93x) underpins durable self‑funding for R&D, tuck‑in M&A, dividends and >$600M planned buybacks. High cash quality reduces refinancing risk and supports capital returns even in slower revenue periods.
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$47.29B
Dividend Yield0.95%
Average Volume (3M)1.08M
Price to Earnings (P/E)21.9
Beta (1Y)0.81
Revenue Growth11.99%
EPS Growth32.89%
CountryAU
Employees9,980
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.40
Shares Outstanding1,456,783,900
10 Day Avg. Volume805,465
30 Day Avg. Volume1,076,544
Financial Highlights & Ratios
PEG Ratio0.75
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$47.69Price Target Upside48.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.11
Revenue Forecast (FY)AU$5.65B
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Business Overview & Revenue Model
Company Description
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers v...
How the Company Makes Money
ResMed primarily makes money by selling sleep and respiratory care products and by charging recurring fees for healthcare software services. A major revenue stream comes from hardware devices used for sleep apnea and respiratory therapy (such as p...
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call communicated broad financial and operational strength: top‑line growth (11% headline, 9% cc), solid device and mask performance, margin expansion, double‑digit EPS growth, strong cash generation and active capital returns. Management highlighted multiple growth engines—new product launches (fabric masks), AI (Comfort Match), supply‑chain margin initiatives, software tuck‑ins and a favorable demand tailwind from patients associated with GLP‑1 therapies. Near‑term challenges were limited: RCS vertical softness in senior living/long‑term care, a modest restructuring charge, higher SG&A (partly from acquisitions and marketing), and a higher effective tax rate. Overall, positives materially outweighed negatives across key metrics and strategic initiatives.Positive Updates
RCS & Software Progress and Strategic M&A
Residential care software (RCS) revenue rose ~5% (cc); management progressing portfolio management work with a target to return RCS to sustainable high single‑digit growth and double‑digit operating profit growth by FY27. Recent tuck‑in M&A (VirtuOx, EctoSense, Somnaware) expanding diagnostic and virtual testing capabilities.
Negative Updates
RCS (Residential Care Software) Near‑term Drag in Certain Verticals
RCS revenue grew 5% (cc) but remains weighed down by ongoing challenges in senior living and long‑term care verticals; management expects mid‑single‑digit growth for the March and June quarters while portfolio management is executed.
Read all updates
Q2-2026 Updates
Positive
Negative
RCS & Software Progress and Strategic M&A
Residential care software (RCS) revenue rose ~5% (cc); management progressing portfolio management work with a target to return RCS to sustainable high single‑digit growth and double‑digit operating profit growth by FY27. Recent tuck‑in M&A (VirtuOx, EctoSense, Somnaware) expanding diagnostic and virtual testing capabilities.
Read all positive updates
Company Guidance
ResMed provided several forward-looking targets and capital-allocation metrics: for fiscal 2026 management expects gross margin in the range of 62%–63%, SG&A of 19%–20% of revenue, R&D of 6%–7% of revenue, and an effective tax rate of 21%–23%; the company plans share repurchases totaling more than $600 million for FY26 (it repurchased ~$175 million this quarter, ~704k shares) and declared a quarterly dividend of $0.60 per share (combined dividend and repurchases returned ~$263 million this quarter). Near-term operational guidance includes maintaining mid-single-digit growth in the RCS business for the March and June quarters while targeting a return to sustainable high-single-digit growth and double-digit operating profit growth in FY27; supply-chain productivity is expected to drive ongoing margin expansion (management challenged the team to deliver double-digit basis-points improvement in gross margin each year through 2030). On liquidity and investment, the company finished the quarter with $1.4 billion of cash, $664 million gross debt ($753 million net cash), ~$1.5 billion available on its revolver, generated $340 million of operating cash flow this quarter, and incurred $29 million of capex and $50 million of D&A.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
86
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.42B | 5.15B | 4.69B | 4.22B | 3.58B | 3.20B |
| Gross Profit | 3.29B | 3.05B | 2.66B | 2.36B | 2.02B | 1.84B |
| EBITDA | 2.08B | 1.92B | 1.53B | 1.36B | 1.18B | 1.10B |
| Net Income | 1.49B | 1.40B | 1.02B | 897.56M | 779.44M | 474.50M |
Balance Sheet | ||||||
| Total Assets | 8.51B | 8.17B | 6.87B | 6.75B | 5.10B | 4.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 1.21B | 238.36M | 227.89M | 273.71M | 295.28M |
| Total Debt | 1.00B | 851.81M | 899.21M | 1.58B | 917.55M | 793.72M |
| Total Liabilities | 2.18B | 2.21B | 2.01B | 2.62B | 1.74B | 1.84B |
| Stockholders Equity | 6.33B | 5.97B | 4.86B | 4.13B | 3.36B | 2.89B |
Cash Flow | ||||||
| Free Cash Flow | 1.79B | 1.65B | 1.29B | 559.30M | 195.11M | 619.89M |
| Operating Cash Flow | 1.92B | 1.75B | 1.40B | 693.30M | 351.15M | 736.72M |
| Investing Cash Flow | -270.10M | -200.04M | -269.78M | -1.16B | -229.92M | -158.46M |
| Financing Cash Flow | -802.05M | -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
32.16
Price Trends
35.34
Negative
36.54
Negative
38.78
Negative
Market Momentum
-0.98
Positive
34.92
Neutral
35.54
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 32.16 is below the 20-day moving average (MA) of 33.47, below the 50-day MA of 35.34, and below the 200-day MA of 38.78, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 34.92 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$47.29B | 21.91 | 24.81% | 0.95% | 11.99% | 32.89% | |
70 Outperform | AU$10.11B | 10.64 | 6.39% | 4.69% | 9.44% | -0.37% | |
68 Neutral | AU$12.21B | 33.69 | 50.70% | 0.24% | 31.88% | 39.10% | |
65 Neutral | AU$11.06B | 26.40 | 17.76% | 1.64% | 4.32% | 9.24% | |
64 Neutral | AU$8.96B | 12.30 | 5.75% | 2.25% | 6.82% | -99.27% | |
62 Neutral | AU$30.43B | 22.26 | 12.63% | 0.44% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* 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 CEO Farrell Exercises Options and Sells Shares Under 10b5-1 Plan
Mar 15, 2026
ResMed chairman and chief executive Michael J. Farrell reported a set of stock option exercises and share sales conducted under a pre-arranged Rule 10b5-1 trading plan adopted in late 2024. Farrell exercised options for 4,991 shares of ResMed comm...
ResMed Director Peter Farrell Plans Modest Insider Share Sale Under Rule 144
Mar 5, 2026
ResMed director Peter C. Farrell has filed notice of a proposed sale of 2,000 common shares under Rule 144, with Merrill Lynch acting as the broker and the shares listed on the NYSE. The planned sale, part of a trading plan adopted in August 2025,...
ResMed Updates CDI Count Amid Cross-Market Transfers and Buybacks
Mar 5, 2026
ResMed Inc. has reported updated figures for its CHESS Depositary Interests (CDIs) on issue for February 2026, showing 574,157,700 CDIs on issue at month-end, down from 580,546,240 the previous month, driven by net transfers between CDIs quoted on...
ResMed CFO Sandercock Sells 1,000 Shares Under Pre-Set Trading Plan
Mar 4, 2026
ResMed’s chief financial officer, Brett Sandercock, has reported the sale of 1,000 shares of ResMed common stock in a transaction dated March 2, 2026, at a price of $254.30 per share. Following this planned sale, conducted under a pre-arrang...
ResMed Executive Files Rule 144 Notice for Routine Share Sales
Mar 3, 2026
ResMed Inc. has disclosed that company officer Brett Sandercock plans to sell 1,000 common shares under Rule 144, with the transaction arranged through Fidelity Brokerage Services and scheduled around March 2, 2026. The filing also notes that Sand...
ResMed Chairman Emeritus Peter Farrell Sells Shares Under 10b5-1 Plan
Feb 8, 2026
ResMed Chairman emeritus and director Peter C. Farrell has reported the sale of 2,000 shares of ResMed common stock at a price of $251.31 per share, leaving him with beneficial ownership of 64,773 shares. The transaction, dated 4 February 2026, wa...
ResMed General Counsel Sells Shares Under Pre-Set Trading Plan
Feb 8, 2026
ResMed’s Global General Counsel and Secretary, Michael J. Rider, reported the sale of 50 shares of ResMed common stock at a price of $260.00 per share, leaving him with beneficial ownership of 9,691 shares. The transaction, dated 4 February ...
ResMed Adjusts CDI and Share Balances Amid Ongoing Capital Management
Feb 5, 2026
ResMed Inc. has reported an increase in the number of CHESS Depositary Interests (CDIs) quoted on the ASX for January 2026, with total CDIs on issue rising to 580,546,240 from 579,449,490, a net increase of 1,096,750 driven by net transfers betwee...
ResMed CFO Sells 1,000 Shares Under Pre-Set Trading Plan
Feb 3, 2026
ResMed’s chief financial officer, Brett Sandercock, has reported the sale of 1,000 shares of ResMed common stock at a price of $257.03 per share, leaving him with beneficial ownership of 85,495 shares. The transaction, executed on 2 February...
ResMed Files Quarterly Form 10-Q for December 2025
Feb 1, 2026
ResMed Inc. has filed its Form 10-Q for the quarter ended December 31, 2025, confirming that it remains a large accelerated filer in full compliance with U.S. Securities and Exchange Commission reporting requirements and electronic data submission...
ResMed CEO Michael Farrell Exercises Options and Sells Shares Under 10b5-1 Plan
Jan 13, 2026
ResMed’s chairman and chief executive officer, Michael J. Farrell, reported changes in his beneficial ownership of the company’s common stock following the exercise of stock options and subsequent sale of shares executed under a pre-ar...
ResMed Chairman Emeritus Peter Farrell Sells 2,000 Shares Under Trading Plan
Jan 13, 2026
ResMed Inc. disclosed that director and chairman emeritus Peter C. Farrell sold 2,000 shares of ResMed common stock on 7 January 2026 at a price of $248.83 per share under a pre-arranged Rule 10b5-1 trading plan adopted in August 2025. Following t...
Resmed Sets January 29 Date to Unveil Q2 FY2026 Results
Jan 8, 2026
Resmed has scheduled the release of its financial and operational results for the second quarter of fiscal 2026 for January 29, 2026, after the close of trading on the New York Stock Exchange, followed by a management webcast to discuss the perfor...
ResMed CEO Michael Farrell Plans Further Insider Share Sale Under Rule 144
Jan 8, 2026
ResMed Inc. has disclosed that Chief Executive Officer and Director Michael J. Farrell intends to sell 4,991 shares of the company’s common stock on or about January 7, 2026, through Fidelity Brokerage Services LLC, under a Rule 144 filing. ...
ResMed Director Peter Farrell Plans Additional Insider Share Sale Under Rule 144
Jan 8, 2026
ResMed director Peter C. Farrell has filed a notice of proposed sale of company securities under SEC Rule 144, disclosing his intention to sell 2,000 common shares of ResMed through broker Merrill Lynch on the New York Stock Exchange. The filing s...
ResMed General Counsel Discloses Small Share Sale Under 10b5-1 Trading Plan
Jan 8, 2026
ResMed Inc.’s Global General Counsel and Secretary, Michael J. Rider, has reported the sale of 50 shares of ResMed common stock on 2 January 2026 at a price of $241.75 per share, leaving him with beneficial ownership of 9,741 shares. The tra...
ResMed CFO Sells Small Block of Shares Under Pre-Arranged Trading Plan
Jan 8, 2026
ResMed Inc.’s chief financial officer, Brett Sandercock, has reported the sale of 1,000 shares of ResMed common stock on 2 January 2026 at a price of $241.75 per share, in a transaction executed under a pre-arranged Rule 10b5-1 trading plan ...
ResMed Updates CDI and Share Structure for December 2025
Jan 6, 2026
ResMed Inc., whose NYSE-listed common stock is traded on the ASX via a 10:1 CHESS Depositary Interest structure under the code RMD, reported updated figures for its CDI and underlying securities on issue for December 2025. The total number of CDIs...
ResMed Officer Brett Sandercock Discloses Planned Sale of 1,000 Shares Under Trading Plan
Jan 5, 2026
ResMed Inc. has disclosed that company officer Brett Sandercock plans to sell 1,000 common shares on or around 2 January 2026 through Fidelity Brokerage Services LLC, with an aggregate market value of about $241,750, under a previously adopted Rul...
ResMed Executive Files Routine Rule 144 Notice for Small Share Sale
Jan 5, 2026
An executive of ResMed Inc., officer Michael J. Rider, has filed a notice of proposed sale of company common stock under Rule 144, covering 50 shares to be sold on the NYSE through Fidelity Brokerage Services. The shares, valued at roughly $12,088...
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.