RMDResMed exhibits strong financial health and growth potential driven by the expanding sleep and respiratory care market. While valuation is somewhat stretched, consistent earnings and a solid market position support a positive outlook.
ResMed is well-positioned to benefit from secular growth trends in healthcare, specifically the increasing prevalence of sleep apnea and respiratory diseases, coupled with the adoption of connected health solutions.
ResMed demonstrates robust profitability, consistent revenue growth, and a healthy balance sheet, although its P/E ratio indicates a premium valuation.
The stock shows a strong upward trend supported by moving averages, but some oscillators indicate it may be approaching overbought conditions, suggesting potential for short-term consolidation.
| Factor | Score |
|---|---|
| Aging Global Population | 90 |
| Chronic Disease Management | 88 |
| Telehealth & Remote Monitoring | 85 |
| Healthcare Technology Innovation | 80 |
| Regulatory Landscape (Healthcare) | 75 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 92 |
| Growth | 88 |
| Balance Sheet Health | 93 |
| Cash Flow | 90 |
| Factor | Score |
|---|---|
| Trend Analysis | 85 |
| Momentum | 55 |
| Volume | 70 |
| Support/Resistance | 70 |
Consistent EPS Beat
ResMed Inc. (RMD) has consistently beaten earnings per share (EPS) estimates in recent quarters. For instance, the Q2 2025 estimate was $2.36, and the reported EPS was $2.37, a beat of 0.42%. The Q1 2025 estimate was $2.31, and the reported EPS was $2.43, a beat of 4.97%.
Strong Recent Performance
The stock has demonstrated robust performance across various periods, with a 1-year return of 40.05% and a Year-to-Date (YTD) return of 20.23%. This indicates strong investor sentiment and market appreciation.
High P/E Ratio
The TTM P/E ratio of 39.3 and the P/E for 2024 at 39.3 are relatively high compared to historical averages (e.g., 2021 P/E of 73.6, but this was an outlier). This suggests that the stock might be trading at a premium, demanding strong future growth to justify its valuation.
Potential for Slower Growth
While recent quarterly net income growth has been strong (e.g., Q2 2024 net income $292,236,000, Q1 2025 net income $365,041,000), the revenue growth trend needs careful monitoring. Annual revenue growth has been positive but may not always keep pace with the high P/E ratio.
May 2025
8
Ex-Dividend Date
June 2025
12
Next Dividend Date
August 2025
1
Next Earnings Date
H: $2.60
A: $2.48
L: $2.35
H: 1.36B
A: 1.33B
L: 1.30B
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company 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; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN's software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
269.44 USD
The 39 analysts offering 1 year price forecasts for RMD have a max estimate of 295.00 and a min estimate of 200.00.