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ResMed Inc.

Rank #145Hypergrowth

RMD · NYSE · Healthcare

ResMed Inc. (RMD) — Rank #145 by gross profitability (GP/assets 0.38) · ROE 23.1% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000943819 · all metrics point-in-time as of the filing date.

About

ResMed Inc. engages in the digital health and cloud-connected medical devices business in the United States and internationally.

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It operates in two segments, Sleep and Breathing Health, and Residential Care Software. The company offers sleep recorders for the diagnosis and titration of sleep apnea in sleep clinics, hospitals, and at home, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry; and EasyCare Tx, a sleep lab solution. It 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; and connectivity module which provides a cellular connection between compatible ventilation devices and AirView system. In addition, the company offers Brightree solutions which are solutions and services for organizations in home medical equipment and pharmacy, orthotic and prosthetic, and home infusion; HEALTHCAREfirst solutions that offers electronic health record, software, billing and coding services, and advanced analytics that enables home health and hospice agencies to optimize clinical, financial and administrative processes; MatrixCare EHR software as a service solutions used by skilled nursing and senior living providers, life plan communities, and home health and hospice sectors; and MEDIFOX DAN software solutions that is used by residential care providers, such as home health and nursing home providers. ResMed Inc.

was founded in 1989 and is headquartered in San Diego, California.

Industry
Medical Instruments & Supplies
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
June 30
Website
resmed.com

Price History

RMD-21.2% · -4.6% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$33.71B

P/E (annual)

22.4

P/S (annual)

6.0

P/B

5.1

P/OCF (annual)

18.7

Shareholder Yield

-0.0%

Employees

11,370

Industry

Medical Instruments & Supplies

Exchange

NYSE

Signal Flags

3 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.38
Return on equity
23.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.36
Current ratio
3.10×
Net cash
$809.87M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.8%

Growth

2/2 pass
Revenue growth
116.9%
Piotroski F-Score
7 / 9
Share dilution
1.1%

Terry Smith quality gate

Passes 4/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

8.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.1% — per-share value needs a total required return of 9.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 11.9%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

3.8%

r = 10% (base)

8.2%

r = 12%

11.9%

Net debt / market cap: -2.4%

Base FCF: $1.6B3Y mean FCF: $513.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

41.6xExpensive
21.1xmed 29.5x48.8x

P / S

Price / revenue per share

8.7xExpensive
4.7xmed 5.4x8.7x

P / B

Price / book value per share

10.4xExpensive
4.1xmed 5.5x10.4x

P / GP

Price / gross profit per share

15.1xExpensive
7.3xmed 9.2x15.1x

P / FCF

Price / free cash flow per share

36.6xExpensive
20.2xmed 24.4x48.6x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.38

Primary signal (Novy-Marx).

9th of 17 SIC 3841 peers

Return on equity

23.1%

Gross margin

61.1%

11th of 17 SIC 3841 peers

Revenue growth (YoY)

116.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2017201820192020
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

—

Revenue CAGR (5Y)

—

Earnings CAGR (3Y)

19.3%

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.36

5th of 16 SIC 3841 peers (best = lowest)

Current ratio

3.10×

7th of 17 SIC 3841 peers

Quick ratio

1.80×

Net cash

$809.87M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$1.65B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.08

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.8%

Stock-based comp intensity.

Dividend safety

Composite score

4.2 / 5

Strong
Payout ratio
23.0%5/5 Strong
FCF coverage
4.72×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.36 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20152020
Capital Return
View full financial statements →