Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Resmed Inc

RMD · NYSE · Healthcare

Fundamental quality

ATTRACTIVE

87

out of 100

Resmed Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 23.4%) with wide margins (net margin 27.4%) and a business that keeps growing (11.5% a year). On fundamental quality it scores 87 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +11.5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

ResMed dominates sleep-apnea devices: the CPAP machines and masks millions of people use every night to breathe properly while they sleep, plus software connecting patient and doctor. A recurring, quietly growing healthcare business.

What will shape its future

  • Underdiagnosed apnea: most sufferers don't know it yet — that is future market.
  • Replacement masks and consumables, its high-margin recurring stream.
  • Weight-loss drugs: the market debates whether they will shrink apnea or bring more patients into treatment.

Breakdown by area

I.Growth
71

EPS growth: 16.7% · Revenue growth: 11.5%

II.Profitability
91

Net margin: 27.4% · ROE: 23.4% · ROIC: 27.5%

III.Financial health
95

Net debt/EBITDA: -0.47x · FCF: 31.7%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +1 for dividend strength: 4 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 89%
ROEbeats 76%
Growthbeats 74%
Cash generationbeats 98%
Less debtbeats 88%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Resmed Inc strengths

  • Excellent free-cash-flow generation (FCF margin of 31.7%): profit turns into real cash.
  • High gross margin (61.6%), pointing to pricing power.
  • Exceptional net margin (27.4%), high even for its sector: the business is clearly profitable.
  • Strong return on equity (ROE of 23.4%): it puts shareholder capital to good use.

Resmed Inc risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Resmed Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20202,957622707713
20213,197475634360
20223,578779216502
20234,2238985741,213
20244,6851,0211,302469
20255,1461,4011,662-541

Between 2020 and 2025, revenue went from $2,957M to $5,146M (+74%) and net income went from $622M to $1,401M (+125%). Meanwhile, its margins have widened (from 21% to 27%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended March 31, 2026, versus the nine months ended March 31, 2025 (SEC filings):

  • Revenue+10.3%
  • Net income+11.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$2.12

per share, yearly

22.2% of earnings

Payout

4 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Resmed Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Resmed Inc a good company to invest in?

In terms of business quality, Resmed Inc scores 87 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Resmed Inc a profitable company?

Very. Resmed Inc shows a net margin of 27.4% and an ROE of 23.4%, typical of a highly profitable business.

Does Resmed Inc have a lot of debt?

No. Resmed Inc has a net cash position: more cash than debt.

Is Resmed Inc growing?

Its revenue has grown 11.5% annualized in recent years and its earnings per share 16.7%, and without interruption since 2020.

Does Resmed Inc generate cash?

Yes. It converts about 31.7% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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