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ResMed

RMD
76
Medical - Instruments & Supplies · Healthcare
Also trades as: RMD.AX AUD 35.91 (+3.16%) · 0KW4.L GBP 2.54 (+1.88%)
Price
$252.86
-0.20 (-0.08%)
Market Cap
$35.56B
Winston Score
76
Winston is happy
A high-quality business with solid fundamentals.
Data as of Oct 25, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Exceptional
28/30
Growth
Strong
16/20
Cash Flow
Exceptional
10/10
Stability
Exceptional
10/10
Valuation
Strong
7/10
Ownership
Weak
2/15
Dividends
Good
3/5

76 of 100 counted points = Winston Score 76.

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Share count falling — buybacks

−1.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 147.0M (2022) → 145.0M (2026)

§Winston Score History

The full picture

ResMed makes medical devices and software that help people breathe better while they sleep. Its main products are CPAP machines and masks used to treat sleep apnea, a condition where people stop breathing during the night. ResMed sells to hospitals, sleep clinics, and directly to patients, and it is one of the two largest sleep apnea device makers in the world.

The company earns money by selling hardware like CPAP machines and replacement masks, and also through software subscriptions that help doctors and home care companies manage patients remotely. ResMed operates in over 140 countries, with most revenue coming from the United States, Europe, and Asia-Pacific. Its large installed base of connected devices creates switching costs that make it hard for customers to move to a competitor, but a key risk is that new weight-loss drugs like GLP-1 medications could reduce the number of people diagnosed with sleep apnea over time, which would slow demand for its core products.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.6% YoY

YoY Growth Rate

Slow revenue growth

Reported EPS Growth

+2.3% YoY

Quarterly reporting periods ended:

30 Jun 2025: $2.59

30 Jun 2026: $2.65

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$378M/ year

↑ Rising (+14% vs prior year)

6.7% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

0.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.5B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

ResMed is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
58.8%
Premium pricing power — 58.8% gross margin
Profit after running costs
Operating Margin
30.7%
Excellent — 30.7% operating margin
Return on the money invested
ROCE
25.5%
Exceptional — 25.5% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+9.9%
Steady sales growth (+9.9% YoY)
Profit growth
EPS YoY
+9.3%
Earnings growing (+9.3% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
207%
Turns 207% of profit into real cash
Spare cash per sale
FCF Margin
51.1%
Converts sales into free cash efficiently (51.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.13
Conservative — low debt load (0.13)
Covers its interest
Interest Cover
65.20x
Comfortably covers interest (65.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
24.2x
Growth-priced — P/E 24.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+6.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (24.2 → 18.1)

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Dividends

Dividend
Dividend Yield
1.10%
Small dividend — 1.10% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+12.3%
Dividend growing fast (12.3% YoY)
Payout Ratio
40%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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