NYSE:RMD
ResMed Inc. (RMD-N)
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 3 opinions in the last 12 months.
ResMed Inc. (RMD-N) is positioned well within the digital medical device market, especially focusing on sleep and respiratory monitoring and treatment. Despite initial skepticism about their GLP-1 business, experts now see the company thriving, supported by a solid and consistent business model that targets a growing demographic suffering from sleep apnea. With a dominant market share of 90%, ResMed benefits from increasing demand for sleep-related health solutions. Additionally, strong financial metrics such as a 25% return on equity, growing cash reserves, and proactive debt reduction strategies bolster its attractiveness. The company is recommended with a price target suggesting significant upside potential, making it a solid investment prospect for the coming period.
Premium contentResMed has beaten earnings four straight quarters, and its 31.2x PE is nowhere near its 2021 high of 74.5x. However, the street projects a lower future PE of 27.69x. The most recent EPS of $8.91 was 37.09% more than the previous year. Its ROE of 25.81% ranks among the highest in medical equipment where the average is 9.66%. A bonus is that the company operates within the U.S., so is protected from tariffs. Paying a dividend of only 0.76%, ResMed is one for growth, not income.
Premium contentRMD has been showing positive momentum recently, it is nearing in on its all-time highs, and forward margin expansion is expected to be quite positive. Analyst estimates are trending higher, its margins have been growing, and it generats strong free cash flow, which is partly used for dividends, buybacks, and growing the balance sheet. It is trading at a reasonable valuation of 25X forward earnings, and it has structural tailwinds. We would be comfortable buying the name here today for a long-term hold.
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Premium contentPremium contentPremium contentRMD provides cloud based digital medical devices to assist with sleep and respiratory monitoring and treatment — a steady and reliable business model. It trades at 26x earnings and supports a respectable ROE of 25%. We like that cash reserves are growing, while debt is retired and shares bought back. We recommend setting a stop-loss at $190, looking to achieve $271 — upside potential of 22%. Yield 1.0%
(Analysts’ price target is $271.71)18 million Americans have sleep apnea with many others undiagnosed. They have 2.5 billion nights of medical sleep data. They take cases out of hospitals and into homes. Based in Australia and the U.S. Shares have been been steadily rising. (1.3% dividend yield, Analysts' price target $109.75)
ResMed Inc.(RMD-N) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 7
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 7
ResMed Inc.(RMD-N) Frequently Asked Questions
What is ResMed Inc. stock symbol?
ResMed Inc. is a American stock, trading under the symbol RMD-N on the New York Stock Exchange (RMD). It is usually referred to as NYSE:RMD or RMD-N
Is ResMed Inc. a buy or a sell?
In the last year, 7 stock analysts published opinions about RMD-N. 7 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for ResMed Inc..
Is ResMed Inc. a good investment or a top pick?
ResMed Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for ResMed Inc..
Why is ResMed Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is ResMed Inc. worth watching?
7 stock analysts on Stockchase covered ResMed Inc. In the last year. It is a trending stock that is worth watching.
What is ResMed Inc. stock price?
On 2025-10-07, ResMed Inc. (RMD-N) stock closed at a price of $283.28.
It has an unaddressed market for CPAP machines. It is a dominant player since people are not likely to change to another product. Weight loss drugs can be part of a total package.