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Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh
(Sydney:RMD)
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Rating:77Outperform
Price Target:
AU$40.00
â–²(22.17% Upside)
Action:Reiterated
Date:08/17/26
Overall score is driven primarily by strong financial performance (high margins, growing earnings, and a low-leverage balance sheet). The latest earnings call supports the score with solid FY2027 growth/EPS guidance and large shareholder return plans, partially offset by Astral-related headwinds and life-support weakness. Technicals are supportive but somewhat stretched short-term, while valuation is reasonable but not clearly cheap and the dividend yield is modest.
Positive Factors
Profitable growth
ResMed has expanded revenue and earnings over several years while maintaining strong profitability. A roughly 60% gross margin, 34% EBIT margin and 27% net margin provide substantial capacity to fund innovation, absorb business volatility and convert market demand into durable shareholder returns.
Negative Factors
Astral safety action
The Astral field safety action creates more than a temporary reporting nuisance because suspended sales directly remove product revenue and earnings from the FY2027 outlook. The provision and sales halt may also require management attention and could delay recovery in the affected portfolio.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitable growth
ResMed has expanded revenue and earnings over several years while maintaining strong profitability. A roughly 60% gross margin, 34% EBIT margin and 27% net margin provide substantial capacity to fund innovation, absorb business volatility and convert market demand into durable shareholder returns.
Read all positive factors
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh (RMD) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$49.83B
Dividend Yield0.92%
Average Volume (3M)1.22M
Price to Earnings (P/E)24.0
Beta (1Y)0.70
Revenue Growth4.74%
EPS Growth4.44%
CountryAU
Employees11,370
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)3.18
Shares Outstanding1,406,392,500
10 Day Avg. Volume1,718,923
30 Day Avg. Volume1,216,977
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)4.42
Price to Sales (P/S)5.03
P/FCF Ratio17.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$38.99Price Target Upside19.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.21
Revenue Forecast (FY)AU$5.81B
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Business Overview & Revenue Model
Company Description
ResMed Inc. designs, manufactures, and markets innovative medical devices and sophisticated cloud-based software platforms for the global healthcare industry, operating through its Sleep and Respiratory Care, and Software as a Service divisions. W...
How the Company Makes Money
ResMed makes money primarily by selling (1) sleep and respiratory care hardware and (2) recurring-use consumables, and by earning (3) subscription and SaaS revenue from its software businesses.
1) Sleep & respiratory care devices (equipment sales...
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial achievements — double-digit EPS growth, gross margin expansion, robust free cash flow, sizable shareholder returns, global product rollouts and digital/clinical engagement gains — while transparently addressing near-term challenges including the Astral field safety action, material declines in life support device revenue, elevated R&D/SG&A investment, and short-term cash flow and margin headwinds from inflation and portfolio transitions. Management provided forward-looking guidance (FY2027 revenue growth of 5%–7% core, reported revenue $5.75–5.85B, non-GAAP EPS $12–12.25) that incorporates these actions and commitments to continue investing in innovation and returning capital to shareholders.Positive Updates
Quarterly Revenue Growth
Q4 group revenue of $1.5 billion, a 9% headline increase and 8% constant-currency growth versus prior-year quarter.
Negative Updates
Astral Field Safety Action and Financial Impact
Took a $42 million Q4 provision for Astral field safety actions; suspended Astral sales for FY2027 resulting in an estimated ~$75 million revenue headwind (~130 basis points) and approximately $0.15 EPS impact embedded in guidance.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q4 group revenue of $1.5 billion, a 9% headline increase and 8% constant-currency growth versus prior-year quarter.
Read all positive updates
Company Guidance
Guidance for fiscal 2027 calls for core constant‑currency revenue growth of 5%–7% (reported revenue $5.75–$5.85 billion, assuming ~50 bps FX headwind), which already includes an approximate 130‑bp (≈$75 million) headwind from suspending Astral sales; non‑GAAP EPS is guided to $12.00–$12.25 (≈7%–10% reported growth), which excluding ~ $0.30 dilution from the MatrixCare divestiture and ~$0.20 from the Noctrix acquisition implies core EPS growth of ~12%–14% (the Astral suspension is roughly a $0.15 EPS headwind); the company expects low‑double‑digit gross margin improvement, a slight increase in operating margin, RCS to deliver high‑single‑digit revenue growth, capital expenditures of $160–$180 million, $1.5 billion of share repurchases (including a $450 million ASR) and total shareholder returns north of $1.85 billion, and Q1 seasonality with a slight year‑over‑year dip in gross margin and operating expenses roughly flat to Q4.Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
80
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.78B | 5.15B | 4.69B | 4.22B | 3.58B |
| Gross Profit | 3.48B | 3.05B | 2.66B | 2.36B | 2.02B |
| EBITDA | 2.21B | 1.92B | 1.53B | 1.36B | 1.18B |
| Net Income | 1.56B | 1.40B | 1.02B | 897.56M | 779.44M |
Balance Sheet | |||||
| Total Assets | 8.96B | 8.17B | 6.87B | 6.75B | 5.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 1.21B | 238.36M | 227.89M | 273.71M |
| Total Debt | 825.56M | 851.81M | 899.21M | 1.58B | 917.55M |
| Total Liabilities | 2.38B | 2.21B | 2.01B | 2.62B | 1.74B |
| Stockholders Equity | 6.58B | 5.97B | 4.86B | 4.13B | 3.36B |
Cash Flow | |||||
| Free Cash Flow | 1.69B | 1.65B | 1.29B | 559.30M | 195.11M |
| Operating Cash Flow | 1.85B | 1.75B | 1.40B | 693.30M | 351.15M |
| Investing Cash Flow | -557.17M | -200.04M | -269.78M | -1.16B | -229.92M |
| Financing Cash Flow | -1.03B | -606.25M | -1.12B | 422.87M | -128.36M |
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Technical Analysis
Positive
32.74
Price Trends
32.52
Positive
30.85
Positive
31.69
Positive
Market Momentum
0.99
Negative
67.59
Neutral
72.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RMD, the sentiment is Positive. The current price of 32.74 is below the 20-day moving average (MA) of 33.62, above the 50-day MA of 32.52, and above the 200-day MA of 31.69, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 72.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RMD.
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Risk Analysis
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh disclosed 39 risk factors in its most recent earnings report. Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$49.83B | 23.96 | 23.88% | 0.92% | 4.74% | 4.44% | |
65 Neutral | AU$155.23M | 67.65 | 2.53% | ― | 26.61% | 41.67% | |
57 Neutral | AU$45.95M | 209.09 | 0.93% | ― | 18.54% | ― | |
55 Neutral | AU$65.93M | -24.79 | -5.44% | ― | 2.73% | 25.00% | |
55 Neutral | AU$2.07B | -8.70 | -288.42% | ― | 20.64% | -457.40% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | AU$256.57M | -16.15 | -5.34% | 2.79% | 1.84% | -178.23% |
* Healthcare Sector Average
AU:RMD
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh
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Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Corporate Events
ResMed General Counsel Reports Modest Insider Share Sale Under 10b5-1 Plan
Oct 27, 2026
ResMed Inc. disclosed a share transaction by Global General Counsel Michael J. Rider, who sold 400 shares of ResMed common stock at a price of $255 per share under a pre-arranged Rule 10b5-1 trading plan adopted in February 2025. Following the sal...
ResMed CEO Farrell Exercises Options and Sells Shares Under 10b5-1 Plan
Oct 9, 2026
ResMed Inc. reported that Chairman and CEO Michael J. Farrell exercised stock options and subsequently sold 4,991 common shares on 7 October 2026 under a pre-arranged Rule 10b5-1 trading plan. Following these transactions, Farrell continues to hol...
ResMed Awards Performance-Based Stock Units to Chief Product Officer
Oct 1, 2026
ResMed Inc. has reported a change in beneficial ownership for Chief Product Officer Justin Leong, following the earning of performance-based restricted stock units granted in November 2025. The compensation and leadership development committee cer...
ResMed CEO Farrell Earns Performance-Based Stock Grant
Oct 1, 2026
ResMed Inc. disclosed a change in beneficial ownership by Chairman and Chief Executive Officer Michael J. Farrell, reflecting an update to his holdings of the company’s common stock. The filing underscores the alignment of executive compensa...
ResMed CFO Awarded Performance-Based Equity Grant
Oct 1, 2026
ResMed Inc. has granted Chief Financial Officer Aaron Bloomer performance-based restricted stock units that converted into 9,072 shares of common stock at no purchase price once specified performance metrics were certified as achieved. The award, ...
ResMed Sets 2026 Virtual Annual Meeting and Key Governance Votes
Oct 1, 2026
ResMed Inc. has scheduled its 2026 annual meeting of stockholders for November 18 in the U.S. and November 19 in Australia, to be held via live internet webcast, allowing investors to attend and vote virtually. Shareholders are encouraged to revie...
Resmed Sets Date for First-Quarter Fiscal 2027 Earnings Release and Webcast
Oct 1, 2026
Resmed Inc., a global provider of AI-enabled sleep and respiratory care technologies, develops cloud-connected medical devices and digital platforms to support personalized home healthcare across more than 140 countries. Its solutions target bette...
ResMed CEO Michael Farrell Exercises Options and Sells Shares Under 10b5-1 Plan
Sep 10, 2026
ResMed Chairman and CEO Michael J. Farrell reported a series of transactions in ResMed common stock and options conducted on September 8, 2026 under a pre-established Rule 10b5-1 trading plan. Farrell exercised stock options at an exercise price o...
ResMed Adjusts CDI and Share Counts Amid Cross-Market Transfers and Buybacks
Sep 7, 2026
ResMed Inc. has reported a decline in the number of CHESS Depositary Interests on issue for August 2026, with CDIs over quoted securities falling to about 581.1 million from 591.3 million a month earlier. The change largely reflects net transfers ...
ResMed Chairman Emeritus Peter Farrell Sells Shares Under 10b5-1 Plan
Sep 6, 2026
ResMed Inc. reported that Chairman emeritus and director Peter C. Farrell sold 970 shares of ResMed common stock at an average price of about $234.73 per share. Following this transaction, Farrell continues to hold 51,803 shares directly, indicati...
ResMed Updates FX Rate and Tax Details for ASX CDI Dividend
Aug 23, 2026
ResMed Inc. has updated its dividend notification for holders of CHESS Depositary Interests on the Australian Securities Exchange, revising the foreign exchange rate applied to the upcoming quarterly distribution tied to the period ended June 30, ...
ResMed Confirms Status as Large Accelerated Filer in 2026 Form 10-K
Aug 13, 2026
ResMed Inc. has filed its annual report on Form 10-K for the fiscal year ended June 30, 2026, confirming it remains a well-known seasoned issuer in full compliance with U.S. securities reporting requirements. The filing notes that the company is n...
ResMed Updates July CDI Balances Amid Dual-Listing Share Movements
Aug 5, 2026
ResMed Inc. has released its July 2026 statement of CHESS Depositary Interests on issue, outlining changes in its ASX-listed CDIs that represent NYSE-traded common stock. The filing details movements between CDIs and common shares, reflecting ongo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.