# ResMed Inc. (RMD) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Healthcare / Medical Devices & Supplies. Price $227.08, market value $31.9 billion.

## Valuation
- **P/E (trailing): 20.7×** (5-yr avg 29.1×, 3-yr avg 24.2×). ResMed Inc. trades at 20.7× trailing earnings, well below its own five-year average of 29.1×: cheap by its own standards. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 17.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.77**. A PEG of 1.77 is in the range usually read as fairly priced for its growth.
- **Price / sales: 5.6×**. Each dollar of revenue is priced at 5.6×.
- **Price / book: 5.4×**. The shares trade at 5.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 14.9×**. Enterprise value is 14.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.0%** (5-yr avg 3.5%). Free cash flow equals 5.0% of the market value, above its five-year average of 3.5%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.8%**. The inverse of the P/E: 4.8% of the price is earned each year.

## Profitability
- **Gross margin: 61.1%**. ResMed Inc. keeps 61.1% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 33.0%**. 33.0% of revenue is left after running the business, an exceptional level.
- **Net margin: 26.9%**. 26.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 23.1%**. 23.1% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 25.9%**. Return on all capital, debt included, is 25.9%: comfortably above what that capital costs.
- **Return on assets: 17.8%**. Each dollar of assets produces 17.8% of profit.

## Growth
- **Revenue growth (1 yr): 9.9%** (3-yr 10.2%/yr, 5-yr 12.1%/yr). Revenue grew 9.9% over the last year, against 12.1% a year compounded over five years.
- **EPS growth (1 yr): 9.7%** (3-yr 19.6%/yr, 5-yr 26.3%/yr). Earnings per share rose 9.7%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 42.2%/yr**. Free cash flow has compounded at 42.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.10**. Debt is 0.10 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. ResMed Inc. holds more cash than debt.
- **Current ratio: 3.10** (quick 3.10). Current assets cover the next year's liabilities 3.10 times.
- **Altman Z-score: 10.80**. A Z-score of 10.80 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.16%** ($2.46 per share, trailing). ResMed Inc. yields 1.16%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 23%** (22% of free cash flow). 23% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 14**. 14 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 7.7%/yr** (1-yr 11.9%). The dividend has grown 7.7% a year over five years.

## Analyst view
- **Analyst consensus: buy** (17 analysts). 17 analysts cover ResMed Inc.; the consensus is buy, with an average price target of $265.11 (+17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -4.9%** (YTD -2.8%, 3-mo 8.2%). The shares are down 4.9% over twelve months including dividends.
- **From 52-week high: -18.2%** (26.0% above the low). Trading 18% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 0.47** (volatility 30%). Beta of 0.47 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RMD · Page: https://foliofundamentals.com/stocks/rmd

Not investment advice.