# Resmed (RMD.US)

Canonical: https://gigainvestors.com/s/RMD

Analysis as of: 2026-10-16T07:31:37.235Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $242.23 per share; close as of 2026-10-15.

Estimated value: low $145.72 per share, central $208.26 per share, high $243.14 per share. Buy at or below the central value $208.26 per share. Valuation as of 2026-10-16T07:31:37.235Z; scenarios are not confidence intervals.

Expected annual return: 9.0% at the stated quote. About 9.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.15×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.23×

- FY2019: 0.22×

- FY2020: 0.27×

- FY2021: 0.28×

- FY2022: 0.28×

- FY2023: 0.27×

- FY2024: 0.28×

- FY2025: 0.33×

- FY2026: 0.34×

### moat: pass

- ROIC, median of available years: 39.7%

- ROIC, second-lowest year: 32.5%

- Typical minus recent gross margin: -1.2 pp

- Typical gross margin (annual median): 58.1%

- Recent gross margin (lower of latest and 3-year median): 59.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.1%

- ROIC including acquisitions, ten-year median: 18.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 25.5%

- FY2018: 32.5%

- FY2019: 33.7%

- FY2020: 47.6%

- FY2021: 40.3%

- FY2022: 39.2%

- FY2023: 34.0%

- FY2024: 40.1%

- FY2025: 54.9%

- FY2026: 49.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.08×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.1B

- Net income, five-year total: $5.6B

- Return on incremental invested capital: 285.6%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 1.4 pp

- Working capital / revenue, final three-year average: 30.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.05×

- FY2023: 1.07×

- FY2024: 1.10×

- FY2025: 1.10×

- FY2026: 1.06×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 32.5% vs 49.9%

- Per-share earnings: 2.40 to 9.51 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: $17B

- Cumulative retained earnings: $4.9B

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 18.8%

- Per-share value change: $7.10

- Per-share value, starting three-year median: $2.40

- Per-share value, ending three-year median: $9.51

- Buybacks concentrated in cheaper years (correlation): 0.77

- Average buyback yield: 0.9%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $2.3B

- Cumulative net income, 10 years: $7.8B

- ROIC, first three-year median: 32.5%

- ROIC, last three-year median: 49.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: $2.40

- FY2018: $2.19

- FY2019: $2.80

- FY2020: $4.27

- FY2021: $3.24

- FY2022: $5.30

- FY2023: $6.09

- FY2024: $6.92

- FY2025: $9.51

- FY2026: $10.43

### accounting: pass

- Sloan accruals: -3.2%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.51×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.1%

- FY2018: -6.2%

- FY2019: -1.3%

- FY2020: -3.9%

- FY2021: -5.5%

- FY2022: 8.4%

- FY2023: 3.0%

- FY2024: -5.5%

- FY2025: -4.3%

- FY2026: -3.2%

## Holders

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 9.4% a year for ten years · sales +9.9%

Story as of 2026-10-16T09:59:30.766Z; price observation 2026-10-15.

Price needs cash profits to grow 9.4% a year for ten years

- 2025-04-24: ResMed (NYSE:RMD) Reports Strong Q3 Earnings Growth and Declares US$0.53 Dividend ([finance.yahoo.com](https://finance.yahoo.com/news/resmed-nyse-rmd-reports-strong-181842476.html))

- 2026-07-21: ResMed Earnings Growth Seen Strong as Ventilator Issue Clouds FY27, UBS Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/resmed-earnings-growth-seen-strong-170509577.html))

- 2026-08-10: Resmed’s stock falls by 7% on soft FY27 outlook ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/resmed-stock-falls-7-soft-110857107.html))

### Sales · FY2025–2026

sales +9.9%; source https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm; observed 2026-08-13.

- FY2017: $2.1B 

- FY2018: $2.3B 

- FY2019: $2.6B 

- FY2020: $3.0B 

- FY2021: $3.2B 

- FY2022: $3.6B 

- FY2023: $4.2B 

- FY2024: $4.7B 

- FY2025: $5.1B 

- FY2026: $5.7B 

### Gross margin · FY2026

gross margin 61.1%; source https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm; observed 2026-08-13.

- FY2017: 58.1% 

- FY2018: 58.2% 

- FY2019: 59.0% 

- FY2020: 58.1% 

- FY2021: 57.5% 

- FY2022: 56.6% 

- FY2023: 55.8% 

- FY2024: 56.7% 

- FY2025: 59.4% 

- FY2026: 61.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 5.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm (filed 2026-08-13); FY2026: revenue 5653443000; grossProfit 3451739000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RMD.US: ResMed Inc. engages in the digital health and cloud-connected medical devices business in the United States and internationally. 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.

### Why customers stay

Margins ranged from 56.7% to 61.1% during 2024–26; it earns 39.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2024: grossProfit / revenue = 56.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2025: grossProfit / revenue = 59.4%.

- Source: https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm (filed 2026-08-13); FY2026: grossProfit / revenue = 61.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); 10-year return on capital observations [[2017,0.25459935751798585],[2018,0.32526203166083145],[2019,0.33722604056146005],[2020,0.47588235042890437],[2021,0.40336811528517424],[2022,0.39249461406726033],[2023,0.3400794118291605],[2024,0.40090276265674124],[2025,0.5489409916675481],[2026,0.49945476215826834]]; median 0.3966986883620008. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 57% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm (filed 2026-08-13); Gross margin observations: [[2021,0.5752895450955244],[2022,0.5657459894520234],[2023,0.5578181162033657]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 700 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2017: growth capex 0; upkeep 71476000; owner earnings 382965000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2018: growth capex 0; upkeep 71457000; owner earnings 364091000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2019: growth capex 0; upkeep 77342000; owner earnings 478045000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2020: growth capex 0; upkeep 105938000; owner earnings 697109000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2021: growth capex 0; upkeep 116826000; owner earnings 549197000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2022: growth capex 0; upkeep 156036000; owner earnings 817242000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2023: growth capex 0; upkeep 134000000; owner earnings 961118000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2024: growth capex 0; upkeep 114856000; owner earnings 1122304000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2025: growth capex 0; upkeep 89865000; owner earnings 1546669000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm (filed 2026-08-13); FY2026: growth capex 0; upkeep 156285000; owner earnings 1611160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); Dividend observations: [[2017,186346000],[2018,199497000],[2019,211712000],[2020,225093000],[2021,226713000],[2022,245341000],[2023,258276000],[2024,282320000],[2025,310880000],[2026,349662000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm (filed 2026-08-13); FY2026: cash repurchases 700037000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RMD.US SharesStats.PercentInsiders = 0.505 percentage points; cache date 2026-10-16.

### What could break it

"Government and private insurance plans may not adequately reimburse our customers for our products" (SEC filing, Aug 2026)

- Source: https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm (filed 2026-08-13); Government and private insurance plans may not adequately reimburse our customers for our products

### What the price says

The price assumes cash profits grow 9.4% yearly over ten years; actual growth was 15.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); Ten-year compound average after fade. Initial solved rate 0.15992533743326576. Price 242.23; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 2.6218015232690286 → FY2026 11.031262409793637. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $59.77 per share

- 2016-11: $61.48 per share

- 2016-12: $62.05 per share

- 2017-01: $67.54 per share

- 2017-02: $72.03 per share

- 2017-03: $71.97 per share

- 2017-04: $67.99 per share

- 2017-05: $71.10 per share

- 2017-06: $77.87 per share

- 2017-07: $77.12 per share

- 2017-08: $77.58 per share

- 2017-09: $76.96 per share

- 2017-10: $84.18 per share

- 2017-11: $85.40 per share

- 2017-12: $84.69 per share

- 2018-01: $100.79 per share

- 2018-02: $95.27 per share

- 2018-03: $98.47 per share

- 2018-04: $94.64 per share

- 2018-05: $102.81 per share

- 2018-06: $103.58 per share

- 2018-07: $105.78 per share

- 2018-08: $111.41 per share

- 2018-09: $115.34 per share

- 2018-10: $105.92 per share

- 2018-11: $111.79 per share

- 2018-12: $113.87 per share

- 2019-01: $95.17 per share

- 2019-02: $102.43 per share

- 2019-03: $103.97 per share

- 2019-04: $104.51 per share

- 2019-05: $114.12 per share

- 2019-06: $122.03 per share

- 2019-07: $128.70 per share

- 2019-08: $139.30 per share

- 2019-09: $135.11 per share

- 2019-10: $147.92 per share

- 2019-11: $149.60 per share

- 2019-12: $154.97 per share

- 2020-01: $158.97 per share

- 2020-02: $158.96 per share

- 2020-03: $147.29 per share

- 2020-04: $155.32 per share

- 2020-05: $160.82 per share

- 2020-06: $192.00 per share

- 2020-07: $202.51 per share

- 2020-08: $180.78 per share

- 2020-09: $171.43 per share

- 2020-10: $191.94 per share

- 2020-11: $209.60 per share

- 2020-12: $212.56 per share

- 2021-01: $201.57 per share

- 2021-02: $192.78 per share

- 2021-03: $194.02 per share

- 2021-04: $187.97 per share

- 2021-05: $205.85 per share

- 2021-06: $246.52 per share

- 2021-07: $271.80 per share

- 2021-08: $290.53 per share

- 2021-09: $263.55 per share

- 2021-10: $262.91 per share

- 2021-11: $254.85 per share

- 2021-12: $260.48 per share

- 2022-01: $228.60 per share

- 2022-02: $246.75 per share

- 2022-03: $242.51 per share

- 2022-04: $199.97 per share

- 2022-05: $203.46 per share

- 2022-06: $209.63 per share

- 2022-07: $240.52 per share

- 2022-08: $219.92 per share

- 2022-09: $218.30 per share

- 2022-10: $223.69 per share

- 2022-11: $230.20 per share

- 2022-12: $208.13 per share

- 2023-01: $228.37 per share

- 2023-02: $213.00 per share

- 2023-03: $218.99 per share

- 2023-04: $240.96 per share

- 2023-05: $210.79 per share

- 2023-06: $218.50 per share

- 2023-07: $222.35 per share

- 2023-08: $159.59 per share

- 2023-09: $147.87 per share

- 2023-10: $141.22 per share

- 2023-11: $157.73 per share

- 2023-12: $172.02 per share

- 2024-01: $190.20 per share

- 2024-02: $173.72 per share

- 2024-03: $198.03 per share

- 2024-04: $213.99 per share

- 2024-05: $206.33 per share

- 2024-06: $191.42 per share

- 2024-07: $213.25 per share

- 2024-08: $245.02 per share

- 2024-09: $244.12 per share

- 2024-10: $242.47 per share

- 2024-11: $249.02 per share

- 2024-12: $228.69 per share

- 2025-01: $236.18 per share

- 2025-02: $233.52 per share

- 2025-03: $223.85 per share

- 2025-04: $236.59 per share

- 2025-05: $244.79 per share

- 2025-06: $258.00 per share

- 2025-07: $271.94 per share

- 2025-08: $274.51 per share

- 2025-09: $273.73 per share

- 2025-10: $246.88 per share

- 2025-11: $255.83 per share

- 2025-12: $240.87 per share

- 2026-01: $258.31 per share

- 2026-02: $256.26 per share

- 2026-03: $224.48 per share

- 2026-04: $213.81 per share

- 2026-05: $190.57 per share

- 2026-06: $194.88 per share

- 2026-07: $210.98 per share

- 2026-08: $240.10 per share

- 2026-09: $221.10 per share

- 2026-10: $242.23 per share

## Annual estimated value (USD per share)

- FY2017: low $49.11 per share, central $69.12 per share, high $80.29 per share

- FY2018: low $48.66 per share, central $70.53 per share, high $82.73 per share

- FY2019: low $49.20 per share, central $71.47 per share, high $83.89 per share

- FY2020: low $57.40 per share, central $82.46 per share, high $96.44 per share

- FY2021: low $58.88 per share, central $83.98 per share, high $98.39 per share

- FY2022: low $55.76 per share, central $70.74 per share, high $82.42 per share

- FY2023: low $95.62 per share, central $139.04 per share, high $163.26 per share

- FY2024: low $106.29 per share, central $154.61 per share, high $181.55 per share

- FY2025: low $123.35 per share, central $176.49 per share, high $206.13 per share

- FY2026: low $143.92 per share, central $205.69 per share, high $240.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/943819/000094381926000047/rmd-20260630.htm); period 2026-06-30, filed 2026-08-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.