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Financial Trends Australia RMD US · Health Care LastUS$195.27 JDS 85.3 A360 43.3
Health Care US: RMD United States of America LIVE

Resmed Inc

PriceUS$195.27
Mkt capUS$28.33bn
1Y return-28.3%
P / E18.8x
Div yield1.09%
52-week range
US$180.41US$293.81
Jones Dynamic ScoreVery Strong
85.3
α
Alpha360 ScoreWeak
43.3
The Jones Nebula

Eight Alpha360 factors, each scored 0 to 100 against every listed stock worldwide. The shape is the investment case at a glance. Understand the scores →

Valuation 71.7 Growth 70.8 Cap. Market Perf. 12.8 Financial Strength 97.6 Analyst Sentiment 20.2 Earnings Perf. 98.1 Operating Eff. 87.6 Cash Flow Perf. 97.7
Valuation 71.7 Growth 70.8 Cap. Market Perf. 12.8 Financial Strength 97.6 Analyst Sentiment 20.2 Earnings Perf. 98.1 Operating Eff. 87.6 Cash Flow Perf. 97.7

The Jones Overview

ResMed (NYSE: RMD / ASX: RMD) is a highly profitable medical technology giant built on an aggressive, high-margin healthcare re-supply model. Operating as a dominant global monopoly, it controls over 60% of the market for Obstructive Sleep Apnea (OSA) treatment. Much like a digital razor-and-blade business, ResMed sells cloud-connected CPAP machines at stable margins, then locks users into a highly lucrative, recurring cycle of high-margin proprietary masks, tubing, and filters.

The critical issue facing the stock is a severe narrative disconnect. Wall Street has heavily discounted the company over lingering fears that GLP-1 weight-loss drugs will eliminate the sleep apnea pipeline. What the market misses is that ResMed's true moat is its cloud-software ecosystem. With over 18 billion nights of clinical data stored in its AirView and myAir platforms, ResMed is deeply embedded into global insurance workflows. Because insurers refuse to reimburse therapy unless cloud data proves patient compliance, doctors and clinics are effectively locked into ResMed's ecosystem. Tearing out this infrastructure to switch to a cheaper hardware competitor is an operational nightmare for healthcare providers.

ResMed is an entrenched data monopoly using market panic to its advantage. Rather than a vulnerable manufacturer under threat by pharmaceuticals, its next phase of growth hinges on the market realising that weight-loss drugs are acting as a patient diagnostic pipeline, rather than a cure.

What is RMD's share price doing?

1D+2.9% 1W+6.7% 1M+5.3% 3M-3.8% 6M-18.2% 1Y-23.6% 3Y-6.0% 5Y-22.5% ALL+24,215.4%

How does Resmed Inc score on Alpha360?

The eight tabs below are the Alpha360 factor scores. Built on decades of academic research, Alpha360 grades Resmed Inc from 0 to 100 on each dimension against all listed stocks worldwide, so a reading in the 90s is genuinely top-tier rather than a pass mark, and the Jones Dynamic Score blends all eight into a single number. Each tab gives the score, a read of what it looks like in practice, and the numbers beneath it. Data updated 26 July 2026. General information only. Some metrics via Yahoo Finance where our feed is unavailable.

Valuation
71.7
Strong

The Alpha360 valuation score weighs price against earnings, book value, cash flow and sales, ranked against all listed stocks worldwide. Resmed Inc screens as inexpensive against its sector on the earnings, book value and cash-flow measures we weigh. For a profitable company that points to real value for the price; for an early-stage or loss-making name, a low reading can also reflect the market pricing in genuine risk rather than a bargain. A PEG ratio of 1.17.

Multiples

Price / earnings 18.83x
Forward P / E 16.32x
PEG ratio 1.17
Price / book 4.36x
Price / sales 5.50x
Price / free cash flow 23.85x
EV / sales 7.25x
Enterprise value US$37.29bn

Size & income

Market cap US$28.33bn
Shares outstanding 145.06m
Dividend yield 1.09%
Dividend / share US$2.12
52W range US$180.41 to US$293.81
Growth
70.8
Strong

The Alpha360 growth score reads the multi-year trajectory of revenue, earnings and cash flow, rewarding durable compounding over one-off jumps. Revenue, earnings and cash flow have been expanding quickly, which is what you want from a business that is scaling. Growth off a small base can be lumpy, so the real question is how durable it proves. That trajectory is anchored by three-year revenue growth of 12.9%.

Growth rates (3yr)

Revenue growth 12.88%
Net income growth 21.58%
Operating cash flow growth 19.42%
Market cap growth -4.13%

Earnings momentum

EPS momentum (1yr) 16.03%
EPS forecast change (3m) 0.66%
Capital Market Performance
12.8
Distressed

The Alpha360 capital-market score measures the shares' price strength and momentum against the market. The shares have lagged the market with poor momentum, which can flag either a value opportunity or a business the market has turned against. Over the past year the shares are down 28.3%.

Price & momentum

Annual stock return -28.33%
Stock return (6m) -23.35%
Beta 0.90
10-day volume vs avg 0.86x
52W range US$180.41 to US$293.81
Financial Strength
97.6
Elite

The Alpha360 financial-strength score stress-tests the balance sheet, its leverage, liquidity and capacity to fund itself. The balance sheet is in good shape: modest debt, healthy liquidity and enough of a buffer to fund operations or ride out a downturn without leaning on capital markets. It runs a current ratio of 3.44 and more cash on hand than total debt.

Leverage & liquidity

Debt / equity 11.20
Current ratio 3.44
Quick ratio 2.53
Net debt / EBITDA –
Total debt / assets 8.05%
Cash flow / debt 2.62
Interest coverage –
Market cap / liabilities 12.84
Distress risk (JDS) 85.3 (Very Strong)

Balance sheet

Revenue US$5.15bn
Total assets US$8.17bn
Total equity US$5.97bn
Total liabilities US$2.21bn
Total debt US$668.29m
Net debt -US$541.16m
Cash & equivalents US$1.21bn
Working capital US$2.49bn
R&D expense US$331.28m
SG&A expense US$1.32bn
Analyst Sentiment
20.2
Distressed

The Alpha360 analyst-sentiment score reads the direction of professional ratings, targets and forecasts. Analysts have been cooling on the name, trimming ratings, targets or forecasts.

Analyst coverage, consensus ratings and price targets sit inside the members' view, alongside our own rating on Resmed Inc.

Earnings Performance
98.1
Elite

The Alpha360 earnings score grades the quality, consistency and margin of profit, not just its headline size. Earnings are high quality and consistent, with healthy margins, so the profits are dependable rather than one-off. Net profit margin runs at 27.2%.

Margins

Gross margin 59.33%
EBIT margin 32.99%
EBITDA margin 36.84%
Operating margin 32.75%
Net profit margin 27.22%

Quality & returns

Return on equity 25.98%
Return on assets 18.70%
Earnings stability 0.94
EPS surprise 0.49%
Operating Efficiency
87.6
Very strong

The Alpha360 efficiency score measures how much profit the business earns on each dollar of capital and revenue. The business turns capital and revenue into profit efficiently, earning strong returns on the money invested in it. Return on equity comes in at 26.0%.

Returns on capital

Return on equity 25.98%
Return on assets 18.70%
Return on capital employed 24.64%
Return on invested capital 27.39%
EBIT / total assets 20.77%

Operating margins

Operating margin 32.75%
EBIT margin 32.99%
Cash flow margin 31.07%
Cash Flow Performance
97.7
Elite

The Alpha360 cash-flow score gauges the strength and durability of the cash the business actually generates. The business throws off strong, durable cash flow, enough to fund growth, dividends or buybacks without relying on outside capital. Cash flow returns come in at 21.4%.

Cash generation

Cash flow returns 21.43%
Free cash flow US$1.19bn
Free cash flow / share US$8.19
Operating cash flow / share US$11.89
Cash flow margin 31.07%
Capital expenditure -US$100.64m

Coverage

Op cash flow growth (3yr) 19.42%
Cash flow / debt 2.62
The method

Every score on this page comes from Alpha360, the eight-factor model built by Professor Stewart Jones from three decades of published academic research, rescored weekly across more than 50,000 listed companies worldwide.

The research behind Alpha360 → Understand the scores → How Alpha360 works →
JDS vs. Health Care Equipment Peers
Ranks 3 of 23 in Health Care Equipment · US rank 292 of 1,967

This stock   Financial Trends Australia covered   Universe

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Questions

Common questions about RMD

What is Resmed Inc's Jones Dynamic Score?
Resmed Inc currently scores 85.3 (Very Strong) on the Jones Dynamic Score, ranking 3 of 12 in Health Care Equipment. The score is recalculated weekly from institutional-grade data.
Is RMD profitable?
Yes. Resmed Inc reports a net profit margin of 27.2% on the latest data. Return on equity is 26.0%.
Does RMD pay a dividend?
Yes. On the latest data Resmed Inc pays a dividend with a trailing yield of about 1.1% at the last close.
How does RMD compare to its peers?
Ranked by the Jones Dynamic Score, Resmed Inc sits 3 of 12 in its Health Care Equipment peer group. The full peer ranking, with each peer's score, is shown on this page.
Is this personal financial advice?
No. Everything on this page is general information only. It does not take into account your objectives, financial situation or needs, and you should consider whether it is appropriate for you before acting on it. The full General Advice Warning is at the bottom of this page.
What does it cost to see your rating on Resmed Inc?
Nothing. Enter your details in the form on this page and our current rating unlocks instantly, along with a free one-on-one walkthrough of the research with our team if you want it. The full written research note is part of membership.
Who builds the scores?
The Jones Dynamic Score and the Alpha360 factor model were built in-house from three decades of academic research. The system scores companies across global markets and is refreshed weekly.
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General Advice Warning. The information provided by Financial Trends Australia is general in nature and does not take into account your personal objectives, financial situation or needs. It does not constitute personal financial advice. Before acting on any information, you should consider its appropriateness having regard to your own objectives, financial situation and needs, and seek independent professional advice. Where the information relates to a financial product, you should obtain and consider the relevant Product Disclosure Statement (PDS) or offer document before deciding to acquire the product. Past performance is not a reliable indicator of future performance. Financial Trends Australia Pty Ltd (ABN 65 091 191 472) is a Corporate Authorised Representative (AR No. 001320926) of MF & Co. Asset Management Pty Ltd (AFSL No. 520442).