| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 35 | 24.3x | 17.3x | Bottom tier | |
Growth | 71 | 9.9% | 7.1% | Top tier | |
Quality | 89 | 20.9% | 4.5% | Top tier | |
Safety | 92 | — | 2.6x | Top tier | |
Capital Return | 85 | 0.95% | 0.06% | Top tier | |
Momentum | 68 | -16.7% | -1.6% | Top tier | |
Sentiment | 63 | 9 | 3 | Around median |
The floor: what the company is worth if growth stopped today
47% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ResMed Inc. sells sleep apnea treatment and respiratory support devices, masks and resupply products, alongside home care software. Its business model combines device sales with ongoing demand for masks, supplies, and software associated with treatment; the AirSense 11 platform connects patients to the MyAir app and care providers to the AirView platform. Its software portfolio includes Brightree and Medifox DAN, while the acquisition of Noctrix expands its product range into restless legs syndrome treatment through the Nydro device.
In quarter 4 of fiscal year 2026, ended 2026-06-30, revenue according to EL7 data was approximately 1.5 billion dollars, net income was 383.4 million dollars, diluted earnings per share were 2.65 dollars, and gross margin was 58.8%. Operating cash flow according to EL7 data was approximately 454.6 million dollars for the same period. A reliable comparison of year-over-year revenue growth or the year-over-year change in gross margin is unavailable, and a reliable operating margin for this quarter is also unavailable.
Business line performance varied in quarter 4 of fiscal year 2026, ended 2026-06-30; sleep device revenue grew 8% in the Americas and 13% in the rest of the world compared with the same quarter of the previous fiscal year in constant currency, while masks and other revenue grew 10% and 12%, respectively, on the same basis. In contrast, life support device revenue declined 45% in the Americas and 38% in the rest of the world on the same basis, while residential care software grew 2%. For fiscal year 2026, ended 2026-06-30, revenue was 5.7 billion dollars, net income was 1.5 billion dollars, and gross margin was 61.1%, making continued strength in sleep devices and masks an important factor in offsetting weakness in life support devices.
Q4 FY2026
Last 12 months to 2026-06-30
When: 2026-10-29
Reported gross margin relative to the 58.8% level
When: Fiscal year 2027
Underlying revenue growth in constant currency within the guidance range of 5% to 7%
The discounted cash flow model estimates value at 293 dollars, within a range of 233 dollars to 391 dollars, and measures the value of future cash at a discount rate of 8.7% while following analysts' earnings estimates. The industry multiple value is 242 dollars, within a range of 178 dollars to 524 dollars, and prices next year's earnings at a median multiple of 19.4 across 28 comparable companies. The median target of 12 analysts is 230 dollars, within a range of 213 dollars to 300 dollars, and reflects their growth expectations, while the no-growth value is 128 dollars and measures what remains if after-tax operating profit stays constant forever at a discount rate of 8.7%. Analyst targets and the industry multiple value are closer to each other than to the higher discounted cash flow model, while the no-growth value illustrates how much the other estimates depend on continued growth and cash generation. Analyst targets tend toward optimism and cash flow models toward conservatism across the broad sample, but the ordering of values for ResMed differs because each method measures a different aspect of its ability to generate earnings and cash.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
ResMed sells masks and resupply products alongside treatment devices, and connects their use to the MyAir app and AirView platform. In quarter 4 of fiscal year 2026, ended 2026-06-30, masks and other revenue grew 10% in the Americas and 12% in the rest of the world compared with the same quarter of the previous fiscal year in constant currency. Continued patient adherence to treatment reinforces the importance of this business; management stated on 2026-08-06 that AirTouch N30i achieved 6% higher adherence over 90 days than its silicone counterpart.
Management's data presented on 2026-08-06 do not indicate direct displacement of PAP treatment; the study covering more than 2.5 million anonymized patients found that those with both PAP and GLP-1 prescriptions were approximately 11% more likely to initiate PAP than those with PAP prescriptions alone. The likelihood of resupply also increased by more than 3% at one year and more than 6% at three years. These findings support the case for complementary use, but do not establish that all drugs or patient groups will produce the same effect.
Automated analysis for informational purposes only — not investment advice.
The negative revenue impact of the Astral sales suspension relative to 75 million dollars
ResMed recorded a provision of 42 million dollars for the safety action in quarter 4 of fiscal year 2026, ended 2026-06-30, and management described the amount as a comprehensive estimate of the work required globally. It expects new Astral sales to remain suspended throughout fiscal year 2027, with a negative revenue impact of approximately 75 million dollars and an earnings-per-share impact of approximately 0.15 dollars during the same fiscal year. The company is prioritizing components for servicing devices already used by patients, and had not made a decision regarding sales in fiscal year 2028 and beyond as of the 2026-08-06 call.
Operating cash flow according to EL7 data was approximately 1.8 billion dollars for the trailing 12 months through 2026-06-30, equivalent to 119% of net income of 1.5 billion dollars for the same period. Trailing 12-month free cash flow calculated by EL7 (operating cash flow minus capital expenditure) was 1.5 billion dollars, compared with share repurchases of 700.0 million dollars for the same period. Management plans share repurchases of 1.5 billion dollars in fiscal year 2027, including an accelerated program of 450 million dollars that it intends to fund with proceeds from the sale of MatrixCare, so execution of the plan also depends on the divestiture and cash generation during fiscal year 2027.
The average analyst target in the 2026-10-19 snapshot is approximately 243.56 dollars with a neutral consensus, while the median target is 230 dollars across 12 analysts. The discounted cash flow model estimates value at 293 dollars, compared with 242 dollars using the industry multiple method and 128 dollars using the constant-profit, no-growth method. The difference reflects growth expectations in analyst targets, earnings priced in line with comparable companies under the industry multiple method, the value of future cash under the discounted model, and what remains when growth stops under the final method.