ResMed Inc. — Medical Instruments & Supplies. Scored on the same transparent 7-signal model behind the daily rankings.
★
RMD
ResMed Inc. · Medical Instruments & Supplies
FCF$1.8bC+
Rev+9.8%B
D/E0.13B+
P/E19.8xB+
PEG1.28B
81.8Score
$208.45$30.2B
1Y Target$260.60Analyst consensus · 15 analysts
5Y Target$381.54Compound horizon
10Y Target$566.00Long-dated conviction
FCF$1.8bTTMC+
FCF $1.8b — respectable but not differentiating
Rev+9.8%TTM YoYB
Revenue +9.8% — at or above S&P median
D/E0.13B+
D/E 0.13 — below the Healthcare debt median (≈40th pctile)
P/E19.8xB+
P/E 19.8 — below the Healthcare median (≈40th pctile)
PEG1.28B
PEG 1.28 — acceptable premium for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 81.8
Quality0.90
Growth0.80
Value0.76
Why this score
Raising its dividend
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week low
29% off the 12-month high
vs DCF fair value16% belowest. fair value ~$247
Quality signals · context only
Gross profitability39% · B+gross profit ÷ total assets (Novy-Marx)
ROIC19.2% · A-return on invested capital — not score-weighted
Why now
ResMed’s cloud‑connected NightOwl and ApneaLink Air platforms lock clinicians into a recurring software ecosystem that fuels high‑margin growth, and that engine is already delivering 9.8% YoY revenue growth, a rock‑solid 27.4% profit margin, and $1.8 B of free cash flow. The business trades at a modest PEG of 1.28 and a P/E of 19.8, meaning the market is undervaluing a compounder that can keep expanding its SaaS‑driven recurring revenue. The thesis rests on the relentless compounding of software‑enabled services around sleep apnea diagnostics.
Moat
ResMed’s integrated hardware‑software stack—ApneaLink Air for clinic‑based diagnostics and NightOwl for at‑home, cloud‑connected monitoring—creates high switching costs for sleep centers that have built care pathways around its data platform. This lock‑in, combined with a 23.4% ROE driven by pricing power in the premium sleep‑health segment, gives the company a durable edge that rivals cannot replicate quickly.
Risk
The growth story could stall: a 9.8% revenue increase is modest for a high‑growth name, and the current P/E of 19.8 implies the market is already pricing in future acceleration; any slowdown would compress margins and push the PEG above 1.5. A bear would see the stock slip back toward its 52‑week low of $180.27 if quarterly earnings miss the margin trajectory, confirming the over‑optimistic valuation.
Horizon
1-3 yr $260.60 (15-analyst consensus) — fundamentals + valuation re-rating. 5 yr $381.54 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $566.00 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · RMD
$
%
%
Shares to buy
9
Position size
$1,876
3.8% of portfolio
Stop price
$156.34
25% below $208.45
$ at risk if stopped
$469.01
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
ResMed Inc. (RMD): score, valuation & FAQ
ResMed Inc. (RMD) is a Medical Instruments & Supplies company that scores 81.8 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (B+) and P/E (B+). On valuation, RMD sits about 16% below our discounted-cash-flow fair value (a margin of safety).
Is RMD a good stock to buy?
Bull Rankings scores RMD 81.8 out of 100 on its quality-growth model, which is a strong reading. That is driven by D/E (B+) and P/E (B+). A score is a quantitative screen of ResMed Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does RMD score 81.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). RMD earns its highest marks on D/E (B+) and P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is RMD overvalued or undervalued?
Based on $208.45, RMD sits about 16% below our discounted-cash-flow fair value (a margin of safety). It trades at a 19.8x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in RMD?
The growth story could stall: a 9.8% revenue increase is modest for a high‑growth name, and the current P/E of 19.8 implies the market is already pricing in future acceleration; any slowdown would compress margins and push the PEG above 1.5. A bear would see the stock slip back toward its 52‑week low of $180.27 if quarterly earnings miss the margin trajectory, confirming the over‑optimistic valuation.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.