ResMed (ASX: RMD) $33.32
ResMed (RMD) has struggled this week, closing yesterday almost 12% below last week's high following a poorly received 1Q27 result which was again all about guidance:
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Fairly valued
Morningstar Quantitative Rating as of 11 NOV 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 32.29 Fair value 35.15 One-star price 38.26
Morningstar Quantitative Rating as of 11 NOV 2026.
Morningstar Quantitative Rating as of 11 NOV 2026. The slider runs from the five-star price (32.29) to the one-star price (38.26).
| Ratios |
|---|
| Currency (Price/reporting): AUD/USD |
| Exchange Rate: 1.4738 |
| Price - closing or last bid | 34.47 |
| Price - 12 month high | 39.94 |
| Price - 12 month low | 25.50 |
| Pricing date | 11 NOV 2026 |
| Volume - avg. trading volume for the last ten days | 2.36 |
| Market capitalization | 48,484.49 |
| 12 Month High price date | 26 NOV 2025 |
| 12 Month Low price date | 3 JUN 2026 |
| Volume - avg. trading volume for the last 3 months | 1.53 |
| Price - 1 Day % Change | 1.77% |
| Price - 13 week price percent change | 10.37% |
| Price - 26 week price percent change | 20.44% |
| Price - 5 Day % Change | 3.11% |
| Price - 52 week price percent change | -10.12% |
| Price - YTD price percent change | -4.09% |
| Price % Change Month To Date | 5.80% |
| EPS excluding extraordinary items - most recent fiscal year | 1.043 |
| EPS excluding extraordinary items - trailing 12 month | 1.098 |
| EPS Normalized - most recent fiscal year | 1.117 |
| Revenue/share - most recent fiscal year | 3.871 |
| Revenue/share - trailing 12 month | 3.949 |
| Book value per share - most recent fiscal year | 4.566 |
| Book value per share - most recent half-year | 4.229 |
| Book value (tangible) per share - most recent fiscal year | 2.235 |
| Book value (tangible) per share - most recent half-year | 1.846 |
| Cash per share - most recent fiscal year | 1.019 |
| Cash per share - most recent half-year | 0.719 |
| Cash Flow per share - most recent fiscal year | 1.287 |
| Cash Flow per share - trailing 12 month | 1.298 |
| Dividend per share - most recent fiscal year | 0.240 |
| Dividends per share - trailing 12 month | 0.361 |
| EBITD per share - trailing 12 month | 1.510 |
| EPS Basic excluding extraordinary items - most recent fiscal year | 1.047 |
| EPS Basic excluding extraordinary items - trailing 12 month | 1.101 |
| EPS including extraordinary items - most recent fiscal year | 1.047 |
| EPS including extraordinary items - trailing 12 month | 1.101 |
| Free Cash Flow per share - trailing 12 month | 1.172 |
| P/E excluding extraordinary items, most recent fiscal year | 21.68 |
| P/E Normalized, most recent fiscal year | 20.65 |
| Price to sales - most recent fiscal year | 6.03 |
| Price to Tangible Book - most fiscal year | 13.05 |
| Price to Free Cash Flow per Share - most recent fiscal year | 20.31 |
| Price to Cash Flow per share - trailing 12 month | 18.34 |
| Price to Book - most recent fiscal year | 5.70 |
| P/E excluding extraordinary items high, trailing 12 months | 25.89 |
| P/E excluding extraordinary items low, trailing 12 months | 16.46 |
| Net Debt, LFI | -400.16 |
| Net Debt, LFY | -643.32 |
| Dividend Yield - 5 Year Average | 0.86% |
| Dividend Yield - indicated annual dividend divided by closing price | 1.04% |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 1.05% |
| Free Cash Flow - most recent fiscal year | 1,702.90 |
| LT debt/equity - most recent fiscal year | 8.15% |
| Payout ratio - most recent fiscal year | 23.01% |
| Total debt/total equity - most recent fiscal year | 12.54% |
| LT debt/equity - most recent half-year | 7.05% |
| Total debt/total equity - most recent half-year | 10.27% |
| Free Cash Flow - trailing 12 month | 1,702.01 |
| Payout ratio - trailing 12 month | 22.40% |
| Revenue - most recent fiscal year | 5,653.44 |
| Revenue - trailing 12 month | 5,732.68 |
| EBITD - most recent fiscal year | 2,113.65 |
| EBITD - trailing 12 month | 2,192.59 |
| Earnings before taxes - most recent fiscal year | 1,919.42 |
| Earnings before taxes - trailing 12 month | 2,011.78 |
| Net Income available to common - most recent fiscal year | 1,523.29 |
| Net Income available to common - trailing 12 months | 1,593.17 |
| Earnings before taxes Normalized - most recent fiscal year | 2,041.16 |
| Net Income Available to Common, Normalized - most recent fiscal year | 1,631.85 |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | 1.15 |
| Net Profit Margin % - 1st historical fiscal year | 26.94% |
| Net Profit Margin % - trailing 12 month | 27.79% |
| Operating margin - 1st historical fiscal year | 33.76% |
| Operating margin - trailing 12 month | 33.13% |
| Pretax margin - trailing 12 month | 35.09% |
| Pretax margin - 1st historical fiscal year | 33.95% |
| Operating Margin - 5 year average | 30.27% |
| Pretax Margin - 5 year average | 29.29% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 27.08% |
| Free Operating Cash Flow/Revenue, TTM | 29.69% |
| Net Profit Margin - 5 year average | 23.80% |
| Return on average assets - most recent fiscal year | 17.82% |
| Return on average assets - trailing 12 month | 18.62% |
| Return on average equity - most recent fiscal year | 24.19% |
| Return on average equity - trailing 12 month | 25.31% |
| Return on average assets - 5 year average | 16.24% |
| Return on average equity - 5 year average | 24.10% |
| Net Income/employee - most recent fiscal year | 133,974.76 |
| Revenue/employee - most recent fiscal year | 497,224.54 |
| Revenue growth rate, 5 year | 12.08% |
| EPS growth rate, 5 year | 26.34% |
| Growth rate% - dividend, 3 year | 10.89% |
| Revenue/share (5 yr growth) | 12.14% |
| Growth rate% - Revenue, 3 year | 10.21% |
| Growth rate% - EPS, 3 year | 19.64% |
| Book value per share growth rate, 5 year | 18.17% |
| Capital Spending growth rate, 5 year | 8.69% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | 13.98% |
Financial forecast (USD, millions except per share)
| Actuals | Estimates | |||||||
| 2026 | 2027 | 2028 | 2029 | |||||
| Estimate breakdown | ||||||||
Financials (USD, millions)
| Period end: | JUN 22 | JUN 23 | JUN 24 | JUN 25 | JUN 26 |
| Fiscal year: | 2022 | 2023 | 2024 | 2025 | 2026 |
| Period length: | 12 months | 12 months | 12 months | 12 months | 12 months |
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
ResMed (RMD) has struggled this week, closing yesterday almost 12% below last week's high following a poorly received 1Q27 result which was again all about guidance:
RMD -6.17%: was hit today after a strong run despite delivering decent 1Q numbers, with revenue, earnings and margins all ahead of expectations. The quality of the result was good, particularly across masks and devices, although the stock had enjoyed a strong run into the print, leaving a relatively high bar to clear.
Global leader in sleep apnoea RMD delivered a solid result in March here, and importantly hasn’t delivered any downgrades. However, the stocks still fallen ~40% over the last year being caught up in the SaaSocalypse, the one part of its business that’s struggled to meet expectations.
RMD -3.53%: ResMed delivered a solid March quarter result, with revenue and earnings both ahead of expectations, helped by ongoing demand for its sleep apnoea devices, masks and broader connected-care ecosystem.
ResMed is a $45bn global medical technology leader focused on sleep apnea and respiratory care, and the clear market leader in sleep-disordered breathing. Its core business centres on CPAP devices and masks, increasingly cloud-connected to improve outcomes and reduce healthcare costs, while a growing SaaS division (e.g. Brightree, MatrixCare) expands its exposure to home-based care. Operating in 140+ countries, ResMed sits at the centre of the shift toward digital and at-home healthcare.
It’s not just the software stocks that have struggled in FY26; the healthcare sector is not too far behind - over the last 6-months the ASX tech sector has fallen 34%, with healthcare 24%. Two previously adored sectors are dominating the losers' enclosure.
RMD's recent earnings saw a few upgrades to the stock, but the gains were short-lived, and it has drifted back towards its multi-month lows. However, we like the narrative unfolding at RMD with Ozempic-style drugs actually increasing demand for sleep devices as consumers become more focused on their health, with wearable devices such as smartwatches highlighting sleep apnoea and sleep quality in general.
RMD retreated 4.3% on Monday, its largest decline since April, after the sleep apnoea business reported 1Q results. The main issue was that organic growth slowed, marking the 3rd consecutive quarter of slowing organic growth rates.
RMD remains a global leader in sleep and respiratory care, offering CPAP devices, masks, and digital health software that treat sleep apnoea and chronic respiratory disorders.
RMD has drifted 10% in recent weeks, taking its direction from a lacklustre healthcare sector. The stock rallied into and through its fourth quarter FY25 earnings on July 31st but its struggled since, taking little solace from a strong market.
MM is neutral towards RMD above $33
MM is neutral RMD ~$33.50
MM is cautiously bullish towards RMD around $28
MM is selling RMD in the Active Growth Portfolio, taking a loss around $26.50
MM is long and bullish RMD
MM is long and cautiously bullish towards RMD around $31
MM is buying RMD in the Active Growth Portfolio, allocating 4% around $36.50
MM is bullish towards RMD in the $33-35 region
MM is bullish towards RMD around $35
MM is now adopting a neutral stance towards RMD
ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks, and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea, combined with aging populations and increasing prevalence of obesity, is resulting in a structurally growing market. The company earns roughly two-thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan, and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor, and payer in the out-of-hospital setting.
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