ResMed Inc. (RMD)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $253.20, ResMed is a fine business priced as a fine business, not a bargain. The company sells cloud-connected sleep and breathing devices plus care software, and the filed numbers show a consistently profitable enterprise. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $1.4 billion, net income $398.7 million, and diluted EPS $2.74. For fiscal year 2026, the year ended 2026-06-30, revenue was $5.7 billion, net income $1.5 billion, and diluted EPS $10.43; fiscal year 2025, the year ended 2025-06-30, had revenue of $5.1 billion, net income of $1.4 billion, and diluted EPS of $9.51. That is real progress. The balance sheet is conservative: FairStock shows debt-to-equity at 0.13, Altman Z at 11.05, and Piotroski at 7/9, while trailing free cash flow is $1.6 billion, a 4.5% FCF yield. FairStock also shows ROE of 24.27% and ROCE of 14.00%. My hesitation is price. FairStock puts P/E at 24.25, P/B at 5.55, PEG at 2.62, EV/EBITDA at 16.65, and Graham Number at $103.56; the margin of safety is -144.17%. A PEG of 2.62 suggests the market is paying up for growth, while the Graham Number says the stock is far above a conservative asset-and-earnings valuation. The Lynch category is FAST GROWER, based on 26.3% annual profit growth over five years and 12.1% revenue growth, but the current price already reflects much of that. I would call it a high-quality compounder with a modest dividend and low beta, yet not a Graham-style bargain.

In plain English: ResMed makes cloud-connected medical devices and software for sleep and breathing care. The business looks strong: sales and profits are growing, profit margins are high, debt is low, and it produces plenty of cash. The share price looks expensive compared with the company's profits and a conservative value estimate, so it is not an obvious bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer