Resmed Inc
Exchange: NYSESector: HealthcareIndustry: Medical Instruments & Supplies
At ResMed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Our comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries.
Did you know?
Earnings per share grew at a 23.0% CAGR.
Current Price
$209.43
+2.15%GoodMoat Value
$331.31
58.2% undervaluedProfile
Valuation (TTM)
Market Cap$30.51B
P/E20.08
EV$32.71B
P/B5.11
Shares Out145.68M
P/Sales5.51
Revenue$5.54B
EV/EBITDA13.90
Resmed Inc (RMD) Stock Analysis
GoodMoat Analysis
Resmed is a high-quality medical device leader with a durable competitive moat, trading at a price that suggests a significant margin of safety. Its strong profitability and market position are clear, but the valuation case hinges on the provided target price. The analysis indicates a favourable setup for further due diligence.
Read full analysis
Resmed Inc. is a global leader in developing and manufacturing medical devices for sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. Its core business revolves around connected CPAP machines and masks, creating an integrated ecosystem for patients and providers. Applying the GoodMoat framework, the company demonstrates a strong moat, likely scoring high on criteria like switching costs (mission-critical therapy with high patient compliance), proprietary data (from its connected device network), and brand/culture leadership in a niche market. The financial quality is also high, with an operating margin of 32.7%, an ROE of 24.9% (exceeding the 15-20% threshold for high ROIC), a solid debt/equity ratio of 0.14, and consistent revenue growth of 11% YoY. This profile suggests it passes the Moat & Quality Gate (Step 1). On valuation, the current P/E of 22.4 appears reasonable for its quality. However, the key figure is the GoodMoat Target of $331.31, which implies a potential margin of safety of approximately 45% from the current price of $227.97. According to the framework's bands, a margin >40% is considered 'Deeply Undervalued,' placing the stock in a favourable position for the Valuation & Risk Gate (Step 2). For a value investor, this combination of a quality business with an apparently large discount to estimated intrinsic value makes Resmed a compelling candidate for deeper investigation. Analysis based on data as of 2024-05-15.
Market Cap$30.51B
Current Price$209.43
P/E Ratio20.08
Forward P/E—
PEG Ratio2.00
EPS$9.51
Book Value$40.97
P/B Ratio5.11
RMD Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 27.3% FCF growth (CAGR)
Cash vs Debt
Net Cash: 358M
Revenue
2.6B
FY19
3.0B
FY20
3.2B
FY21
3.6B
FY22
4.2B
FY23
4.7B
FY24
5.1B
FY25
Net Income
405M
FY19
622M
FY20
475M
FY21
779M
FY22
898M
FY23
1.0B
FY24
1.4B
FY25
RMD 52-Week Range
$205.02
$292.32
50-Day MA: $231.92200-Day MA: $254.71
Did you know?
Earnings per share grew at a 23.0% CAGR.
Resmed Inc (RMD) Financial Summary
Resmed Inc (RMD) is a Healthcare company in the Medical Instruments & Supplies industry, listed on NYSE. The stock currently trades at $209.43 with a market capitalization of $30.51B.
Key valuation metrics include a P/E ratio of 20.08, price-to-book ratio of 5.11, and EPS of $9.51. The company reports a profit margin of 27.4% and return on equity of 25.5%.
RMD Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $30.51B |
| P/E Ratio | 20.08 |
| EPS | $9.51 |
| P/B Ratio | 5.11 |
| P/S Ratio | 5.51 |
| EV/EBITDA | 13.90 |
| Dividend Yield | 1.02% |
| Profit Margin | 27.4% |
| Return on Equity | 25.5% |
| Debt/Equity | 0.14 |
RMD Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.61B | $404.59M |
| FY20 | $2.96B | $621.67M |
| FY21 | $3.20B | $474.50M |
| FY22 | $3.58B | $779.44M |
| FY23 | $4.22B | $897.56M |
| FY24 | $4.69B | $1.02B |
| FY25 | $5.15B | $1.40B |
Resmed Inc (RMD) Valuation
Based on GoodMoat's DCF model, Resmed Inc has a fair value estimate of $331.31. At the current price of $209.43, the stock appears 36.8% undervalued relative to our intrinsic value estimate.
RMD Quality Indicators
Resmed Inc maintains a profit margin of 27.4% and an operating margin of 32.7%. Return on equity stands at 25.5%. The current ratio is 3.44. Debt-to-equity ratio is 0.14.
About Resmed Inc
At ResMed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Our comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries.
RMD Free Cash Flow
Resmed Inc generated $1.66B in trailing twelve-month free cash flow, representing an FCF yield of 5.45%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
RMD Shares Outstanding
Resmed Inc has 0.15 billion shares outstanding at a share price of $209.43, giving it a market capitalization of $30.51B.
RMD Recent Insider Trades
Recent insider transactions at Resmed Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Sandercock Brett (Chief Financial Officer) | SELL | 1,000 | $224310.00 |
| FARRELL PETER C | SELL | 2,000 | $450000.00 |
| Farrell Michael J. (Chairman and CEO) | SELL | 4,991 | $1.25M |