Resmed (RMD) AI Stock Analysis

• Market Cap: $40.18B
• Dividend Yield: 0.79%
• Average Volume (3M): 963.46K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.93
• Revenue Growth: 9.84%
• EPS Growth: 37.48%
• Country: US
• Employees: 9,980
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.55
• Shares Outstanding: 146,414,840
• 10 Day Avg. Volume: 911,821
• 30 Day Avg. Volume: 963,461
• PEG Ratio: 0.72
• Price to Book (P/B): 6.34
• Price to Sales (P/S): 7.36
• P/FCF Ratio: 22.78
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 7.30
• Enterprise Value/Gross Profit: 12.30
• Enterprise Value/Ebitda: 19.53
• 1Y Price Target: $303.11
• Price Target Upside: 10.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 77 Outperform
• Price Target: $307.00 ▲(11.97% Upside)

ResMed's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust growth and strategic investments. However, the high valuation and mixed technical indicators temper the score. The company's confidence in future growth is evident, but potential challenges in China and competitive bidding warrant caution.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand for ResMed's products and services, indicating a solid market position and expanding customer base.

Cash Flow Strength

Strong free cash flow supports ResMed's ability to invest in R&D, pursue strategic acquisitions, and return capital to shareholders, enhancing long-term stability.

Innovation Investment

Investment in innovation, including AI integration, strengthens ResMed's competitive edge and positions it well for future growth in digital health solutions.

Negative Factors

Competitive Bidding Impact

Potential impacts from competitive bidding could pressure margins and affect ResMed's pricing power, posing a risk to profitability.

Challenges in China

Ongoing challenges in China could hinder ResMed's growth in a significant market, affecting its global expansion strategy.

Asset Utilization

Suboptimal asset utilization may limit operational efficiency, impacting ResMed's ability to maximize returns on investments and resources.

Resmed 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 various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME)to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; and HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies. The company markets its products primarily to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force in approximately 140 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

How the Company Makes Money

ResMed generates revenue through several key streams, including the sale of medical devices, software solutions, and services. The Sleep and Respiratory Care segment contributes a significant portion of revenue through the sale of CPAP devices, masks, and other accessories, along with ongoing supplies needed for patient care. Additionally, the company has a robust SaaS model that provides cloud-based platforms for healthcare providers, enabling remote patient monitoring and data analysis, which adds a recurring revenue stream. ResMed also engages in partnerships with healthcare systems and providers to enhance patient care and drive adoption of its products. These partnerships, along with the increasing prevalence of sleep apnea and respiratory diseases, contribute to a growing customer base and recurring revenue from device rentals and supplies, bolstering the company’s earnings.

Resmed Financial Statement Overview

Summary

Resmed's financial statements reflect strong profitability with consistent revenue growth and high profit margins. The company demonstrates low leverage and efficient cash flow management, positioning it well within its industry. While the balance sheet is robust, there is room for improvement in asset utilization.

Income Statement

Resmed has demonstrated consistent revenue growth with a 2.49% increase in the latest year, supported by strong gross and net profit margins of 59.36% and 27.22%, respectively. The EBIT and EBITDA margins are also robust at 32.60% and 37.18%, indicating efficient operational management. These metrics reflect a stable and profitable income statement, positioning the company well within its industry.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.14, indicating low leverage and strong financial stability. Return on equity is solid at 23.47%, reflecting effective use of equity to generate profits. The equity ratio stands at 73.00%, suggesting a strong capital structure with a significant portion of assets financed by equity. Overall, the balance sheet is strong, though there is room for improvement in asset utilization.

Cash Flow

Resmed's cash flow statement is strong, with a 6.23% growth in free cash flow and a high operating cash flow to net income ratio of 1.72, indicating efficient cash conversion. The free cash flow to net income ratio of 0.95 suggests that the company is effectively converting its profits into cash. These metrics highlight a robust cash flow position, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.15B	5.15B	4.69B	4.22B	3.58B	3.20B
Gross Profit	3.05B	3.05B	2.66B	2.36B	2.02B	1.84B
EBITDA	1.92B	1.91B	1.53B	1.36B	1.18B	1.10B
Net Income	1.40B	1.40B	1.02B	897.56M	779.44M	474.50M
Balance Sheet
Total Assets	8.17B	8.17B	6.87B	6.75B	5.10B	4.73B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.21B	238.36M	227.89M	273.71M	295.28M
Total Debt	882.32M	882.32M	873.93M	1.58B	917.55M	793.72M
Total Liabilities	2.21B	2.21B	2.01B	2.62B	1.74B	1.84B
Stockholders Equity	5.97B	5.97B	4.86B	4.13B	3.36B	2.89B
Cash Flow
Free Cash Flow	1.66B	1.66B	1.29B	559.30M	195.11M	619.89M
Operating Cash Flow	1.75B	1.75B	1.40B	693.30M	351.15M	736.72M
Investing Cash Flow	-200.04M	-200.04M	-269.78M	-1.16B	-229.92M	-158.46M
Financing Cash Flow	-606.25M	-606.25M	-1.12B	422.87M	-128.36M	-764.63M

Resmed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 274.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMD, the sentiment is Positive. The current price of 274.19 is above the 20-day moving average (MA) of 274.15, below the 50-day MA of 276.61, and above the 200-day MA of 246.51, indicating a neutral trend. The MACD of -1.01 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMD.

Resmed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WST	78 Outperform	18.69B	37.57	16.65%	0.32%	2.88%	-5.50%
RMD	77 Outperform	$40.18B	28.86	25.86%	0.79%	9.84%	37.48%
BDX	70 Outperform	53.33B	33.54	6.30%	2.24%	7.86%	14.24%
HOLX	69 Neutral	14.77B	27.55	11.50%	―	1.28%	-17.73%
BAX	54 Neutral	11.59B	-84.97	-9.32%	3.01%	-27.41%	67.01%
MASI	54 Neutral	7.63B	-16.39	-44.04%	―	-8.36%	-669.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%