ResMed Inc. (RMD) is a publicly traded company in the Healthcare — Medical - Instruments & Supplies industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
ResMed Inc. is a leading global medical technology enterprise engaged in the creation, production, distribution, and marketing of healthcare devices and connected digital solutions. The company operates through two primary segments: Sleep and Respiratory Care, and Software as a Service.
Is ResMed Inc. stock overvalued or undervalued in 2026?
As of October 5, 2026, ResMed Inc. (RMD) trades at 21.0× earnings (P/E), against a median of 28.5× across the 157 pharma companies above $2bn in Kaplio's universe. Kaplio's verdict: cheap. At the decade median (40.5×) $422 (+93 %); at its sector median (28.5×) $297 (+36 %).
Kaplio overview: ResMed Inc.
Market cap $32B · 52 weeks $183 – $283 (21 % below the high) · P/E 21.0× · 2027 expected P/E 18.1× · Dividend 1.1 % · 11 years rising · Next earnings October 29, 2026 · expected EPS $2.68 · Price as of Oct 5 · accounts published Aug 6.
- Valuation: P/E 21.0× (cheap).
- Business: ROIC 19 % (solid).
- Balance sheet: Net debt/EBITDA −0.3× (solid).
- Earnings: 7 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (40.5×) $422 (+93 %); at its sector median (28.5×) $297 (+36 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in pharma: 5 of 7 pass
- R&D / Revenue 6.7 %, fails.
- Gross margin 61.2 %, fails.
- 5y EPS growth 26.4 %, passes.
- FCF / Net Income 108.3 %, passes.
- ROIC 19.1 %, passes.
- Net debt / EBITDA −0.3×, passes.
- P/E vs own 10y history 21.0×, passes.
Against its peers (reference peers) — ResMed Inc.: P/E 21.1×; EV/EBITDA 12.8×; ROIC 19.1 %; $31.8B. Becton, Dickinson and Company (P/E 53.2×; EV/EBITDA 12.2×; ROIC 4.7 %; $48.7B), Alcon Inc. (P/E 49.0×; EV/EBITDA 17.3×; ROIC 3.2 %; $31.1B), Mettler-Toledo International Inc. (P/E 33.5×; EV/EBITDA 24.9×; ROIC 35.5 %; $30.0B).
Expensive or cheap against its last ten years?
P/E at each close: today 21.1× · median 40.5× · minimum 19.8× · maximum 87.6× · cheap below 33.4× · expensive above 55.9×. It has been cheaper than today only 1% of the time over its last ten years.
Dividend
solid · Yield 1.12 % ($2.42 per share in 2026) · Years raising it ≥ 11 · 5-year growth +9 % a year · Free cash flow coverage 4.9× · With $1,000 invested today you'd collect $11.20 a year ($0.93 a month).
Kaplio's reading: ResMed Inc.
Updated on September 29, 2026 · accounts published on August 6, 2026
Reading of September 29, 2026: A highly profitable business with net cash
ResMed trades at a P/E of 21.4 over the last 12 months, 47 % below its ten-year median; it has been cheaper only 2 % of the past decade.
- Is ResMed expensive or cheap? ResMed's P/E of 21.4 is 47 % below its ten-year median, and it has traded lower only 2 % of the time in that decade.
- How is the business doing? Operating margin reached 34 % in fiscal 2026, the highest of the last 12 fiscal years and well above their 27 % average.
- How strong is the balance sheet? Net cash of $4.25 per share in fiscal 2026 and 11 straight years of dividend increases, with only 23 % of profit paid out.
- What to expect from the next earnings? Next results on October 29, 2026: analysts expect EPS of $2.68, and ResMed has beaten estimates in 7 of the last 8 quarters.
- Does ResMed invest enough in R&D and turn profit into cash? Free cash flow was 108 % of net income in fiscal 2026, but R&D at 6.7 % of revenue falls short of the 15 % healthcare bar.
Is ResMed expensive or cheap?
Over the last 12 months ResMed trades at a P/E of 21.4, against a ten-year median of 40.5 and a decade range from 19.8 to 87.6. It has traded lower only 2 % of the time in those ten years. It is also cheap against peers: the healthcare sector median P/E is 29.0, so ResMed sits 26 % below it. A free cash flow yield of 5.7 % and EV/EBITDA of 14.7× say the same thing. The stock has fallen 17 % over the last 12 months and is 21 % below its 52-week high of $283.28, while earnings kept growing.
How is the business doing?
Over the last 12 months revenue grew 9.9 % and EPS 9.4 %. That is steady growth, not a spurt. Profitability is the bigger story: the 34 % operating margin in fiscal 2026 is the best of the 12 fiscal years since 2015, which averaged 27 %. Net margin is 27 % and ROE 24 %. ROIC of 19 % over the last 12 months is 13.3 points above the sector median of 5.8 %, and it has stayed above 10 % in each of the last 10 fiscal years. A record like that sets a lasting business apart from one that had a single good year.
How strong is the balance sheet?
ResMed carries very little debt. Debt to equity is 0.13 over the last 12 months, and net debt to EBITDA was −0.3× in fiscal 2026 because cash of $10.15 per share exceeds debt of $5.91. A current ratio of 3.10, an Altman Z of 10.0 (safe zone) and a Piotroski score of 8 out of 9 all back this up. The dividend yields 1.1 % and has risen for 11 consecutive fiscal years. The payout is only 23 % of earnings, which leaves room to keep raising it. Net cash is 1.9 % of the share price, so it works as a cushion but does little to the valuation.
What to expect from the next earnings?
On August 6, 2026 ResMed reported EPS of $2.95 against $2.89 expected, a 2.1 % beat, and it has topped estimates in 7 of the last 8 quarters. For the quarter due on October 29, 2026, analysts expect $2.68 per share. Expectations are stable: the 2027 EPS consensus held at $12.09 over the last 14 days, and revenue estimates barely moved. Analysts are lukewarm, with 14 of 35 at buy, 16 at hold and 5 at sell. With the P/E close to its decade low, another beat would test whether that caution is justified.
Does ResMed invest enough in R&D and turn profit into cash?
In healthcare the research pipeline is the asset you cannot see. When patents expire, the revenue they protected disappears, so the sector watches innovation and cash flow above all. ResMed passes five of the seven sector checks. Free cash flow was 108 % of net income in fiscal 2026, above the 90 % healthy mark. EPS grew 26 % a year over fiscal 2021-2026, against an 8 % bar. It misses on R&D, at 6.7 % of revenue against a 15 % threshold, and on gross margin, 61 % against the 70 % set for branded pharma. Both thresholds are set for drug makers, so these two misses need context before they count as a weakness.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve ResMed today?
The Buffett Method would wait for a better price for ResMed: it yields 3.9% before tax; it asks for 10%. Business quality: 79 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-05; not investment advice.
Would Peter Lynch approve ResMed today?
The Lynch Method approves ResMed today: P/E 21.3 with 26% growth; it asks that the P/E not exceed growth. Business quality: 100 out of 100 (price not included). Lynch classifies it as a fast grower. Kaplio assessment with data from the week of 2026-10-05; not investment advice.
Profitability
| Return on Equity | 23.13% |
| Return on Invested Capital | 19.11% |
| Return on Assets | 16.99% |
| Gross Margin | 61.16% |
| Operating Margin | 33.48% |
| Net Margin | 26.94% |
Financial Health
| Debt / Equity | 0.13 |
| Current Ratio | 3.10 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 9.96 |
Price Performance
| 1 month | -4.14% |
| 3 months | +6.34% |
| Year-to-date | -9.13% |
| 1 year | -22.21% |
| 3 years | +49.32% |
| 5 years | -14.16% |
Dividend History
Paid in the last 12 months: $2.4600 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-08-20 | $0.6600 |
| 2026-05-14 | $0.6000 |
| 2026-02-12 | $0.6000 |
| 2025-11-13 | $0.6000 |
| 2025-08-14 | $0.6000 |
| 2025-05-08 | $0.5300 |
| 2025-02-13 | $0.5300 |
| 2024-11-07 | $0.5300 |
| 2024-08-15 | $0.5300 |
| 2024-05-08 | $0.4800 |
Amounts adjusted for stock splits.
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Explore sector: Healthcare · Medical - Instruments & Supplies
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