RMD
ResMed · Health Care · Health Care Equipment
$232.45
52w 180.27 – 293.58
20y monthly, adjusted
Mkt cap
$33.5B
P/E
22.0
P/FCF
20.3
FCF yield
4.9%
ROE
23.1%
Shldr yield
3.1%
div 1.0% + bb 2.1%
What today's price assumes
At $33.5B, the market is pricing in 7.9% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 12.9% per year — expectations look undemanding relative to history.
Simple DCF per-share range: $174 · $336 · $418 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 22.2× across 18 years, RMD would trade near $278/share (25th–75th percentile: $201–$415); it trades at 18.6× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+10.2%
Rev 5y
+12.1%
Rev 10y
+11.9%
EPS 5y
+26.3%
EPS 10y
+15.4%
FCF 5y
+21.1%
FCF 10y
+12.9%
Fundamentals
Fiscal 2009–2026, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q4'26 * | $1.5B | +8.6% | $383.4M | +1.0% | 2.64 | $454.6M |
| Q3'26 | $1.4B | +10.8% | $398.7M | +9.2% | 2.74 | $554.1M |
| Q2'26 | $1.4B | +11.0% | $392.6M | +13.9% | 2.68 | $339.7M |
| Q1'26 | $1.3B | +9.1% | $348.5M | +11.9% | 2.37 | $457.3M |
| Q4'25 * | $1.3B | +10.2% | $379.7M | +29.9% | 2.58 | $538.8M |
| Q3'25 | $1.3B | +7.9% | $365.0M | +21.5% | 2.48 | $578.7M |
| Q2'25 | $1.3B | +10.3% | $344.6M | +65.0% | 2.34 | $308.6M |
| Q1'25 | $1.2B | +11.1% | $311.4M | +41.9% | 2.11 | $325.5M |
| Q4'24 * | $1.2B | +9.0% | $292.2M | +27.2% | 1.97 | $440.1M |
| Q3'24 | $1.2B | +7.2% | $300.5M | +29.2% | 2.04 | $402.0M |
| Q2'24 | $1.2B | +12.5% | $208.8M | −7.2% | 1.42 | $272.8M |
| Q1'24 | $1.1B | +16.0% | $219.4M | +4.2% | 1.49 | $286.3M |
| Q4'23 * | $1.1B | +22.7% | $229.7M | +17.7% | 1.55 | $237.4M |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +10.2% | +12.1% | +11.9% | +10.6% |
| Operating cash flow | +37.6% | +19.6% | +12.7% | +13.1% |
| Free cash flow | +42.2% | +21.1% | +12.9% | +14.5% |
| EPS (diluted) | +19.6% | +26.3% | +15.4% | +14.1% |
| Equity | +16.8% | +17.9% | +14.5% | +9.3% |
| LT debt | −34.7% | −9.1% | −7.5% | +9.7% |
| Diluted shares | −0.3% | −0.1% | +0.3% | −0.5% |
| Stock price | +14.4% | −3.5% | +14.5% | +15.8% |
$100, 3 years ago
$150vs $176 in SPY
14.4% vs 20.7%/yr
$100, 5 years ago
$83vs $181 in SPY
-3.5% vs 12.6%/yr
$100, 10 years ago
$388vs $412 in SPY
14.5% vs 15.2%/yr
$100, 15 years ago
$908vs $813 in SPY
15.8% vs 15.0%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$-1.74
−$7.3B created / $4.2B retained
Last 10 years
$4.18
$22.1B created / $5.3B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
25.9%
OCF ÷ (equity + debt)
OCF / EV yield
5.6%
MC vs 10× OCF
1.86
≤1 = priced under 10× OCF
Debt / FCF
0.2y
SBC / FCF
6.3%
Owner earnings
$1.5B
OCF − capex − SBC
OE yield
4.6%
Share count 5y
−0.3%
per year; negative = buybacks
Capital intensity
10.3%
net PP&E ÷ revenue
Sales efficiency
$0.05
new PP&E per $1 new revenue, 5y
Growth engine (5y): reinvested 38.0% of operating cash flow at an incremental return of 46.9% — an organically fundable growth rate of about 17.8% per year (growth ≈ reinvestment rate × incremental ROIC).
Checklist
26 of 26 checks pass · 100%. Checks with structurally missing inputs are excluded.
Growth & Consistency
7/7
- pass
Revenue growth
12.1% · 5y CAGR ≥ 5%
- pass
EPS growth
26.3% · 5y CAGR ≥ 5%
- pass
FCF growth
21.1% · 5y CAGR ≥ 5%
- pass
Revenue rises consistently
9 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
10 of 10 · positive in ≥ 8 of last 10 years
- pass
Profitable every year
10 of 10 · net income > 0 in ≥ 8 of last 10
- pass
Cash flow keeps up with sales
19.6% vs 12.1% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
7/7
- pass
Net margin
26.9% · ≥ 8%
- pass
Operating margin
33.4% · ≥ 10%
- pass
Gross margin stable or rising
61.1% vs 55.8% · no drop > 2 pts over 3y
- pass
Return on equity
23.1% · ≥ 12%
- pass
Cash ROIC
25.9% · ≥ 12%
- pass
FCF margin
29.2% · ≥ 5%
- pass
Earnings back their cash
OCF $1.8B vs NI $1.5B · OCF ≥ net income (latest FY)
Balance Sheet
4/4
- pass
Debt payable from cash flow
0.2y · LT debt ≤ 3× FCF
- pass
Cash cushion
368% · cash ≥ 50% of LT debt
- pass
Leverage
0.06 · LT debt ≤ 1.5× equity
- pass
Equity positive and compounding
$6.6B · equity > 0 and grew over ~5y
- na
Interest burden
— · interest ≤ 15% of operating income
Capital Allocation
4/4
- pass
Share count flat or shrinking
-0.3% · ≤ +0.5%/yr over ~5y
- pass
Stock comp restrained
6% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
64% · dividends + buybacks ≤ 100% of FCF
- pass
Repurchases are a habit
5 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
4/4
- pass
FCF yield
4.9% · ≥ 3%
- pass
Earnings multiple
22.0 · P/E ≤ 25
- pass
Price asks less than history delivered
7.9% vs 12.9% · implied FCF growth ≤ historical FCF CAGR
- pass
Shareholder yield
3.1% · dividends + buybacks ≥ 2% of market cap
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 5,653 | 3,452 | 1,887 | 1,523 | 10.43 | 1,806 | 156 | 1,650 | 350 | 700 | 104 | 1,469 | 399 | 6,585 | 146 |
| 2025 | 5,146 | 3,055 | 1,685 | 1,401 | 9.51 | 1,752 | 90 | 1,662 | 311 | 300 | 92 | 1,209 | 658 | 5,968 | 147 |
| 2024 | 4,685 | 2,655 | 1,320 | 1,021 | 6.92 | 1,401 | 99 | 1,302 | 282 | 150 | 80 | 238 | 697 | 4,864 | 148 |
| 2023 | 4,223 | 2,356 | 1,132 | 898 | 6.09 | 693 | 120 | 574 | 258 | 0 | 71 | 228 | 1,431 | 4,130 | 147 |
| 2022 | 3,578 | 2,024 | 1,000 | 779 | 5.30 | 351 | 135 | 216 | 245 | 0 | 65 | 274 | 765 | 3,361 | 147 |
| 2021 | 3,197 | 1,839 | 904 | 475 | 3.24 | 737 | 103 | 634 | 227 | — | 64 | 295 | 643 | 2,886 | 146 |
| 2020 | 2,957 | 1,718 | 810 | 622 | 4.27 | 802 | 95 | 707 | 225 | — | 58 | 463 | 1,164 | 2,497 | 146 |
| 2019 | 2,607 | 1,494 | 579 | 405 | 2.80 | 459 | 69 | 390 | 212 | 23 | 52 | 147 | 1,259 | 2,072 | 144 |
| 2018 | 2,340 | 1,335 | 542 | 316 | 2.19 | 505 | 63 | 442 | 199 | 54 | 48 | 189 | 270 | 2,059 | 144 |
| 2017 | 2,067 | 1,202 | 426 | 342 | 2.40 | 414 | 62 | 352 | 186 | — | 46 | 822 | 1,079 | 1,960 | 142 |
| 2016 | 1,839 | 1,066 | 429 | 352 | 2.49 | 548 | 59 | 489 | 168 | 102 | 46 | 731 | 873 | 1,695 | 142 |
| 2015 | 1,679 | 1,011 | 409 | 353 | 2.47 | 383 | 63 | 321 | 157 | 160 | 48 | 717 | 301 | 1,587 | 143 |
| 2014 | 1,555 | 990 | 405 | 345 | 2.39 | 391 | 73 | 319 | 142 | 202 | 43 | 906 | 301 | 1,758 | 144 |
| 2013 | 1,514 | 941 | 355 | 307 | 2.10 | 403 | 64 | 339 | 97 | 186 | 38 | 876 | 1 | 1,611 | 146 |
| 2012 | 1,369 | 821 | 294 | 255 | 1.71 | 383 | 47 | 336 | — | 393 | 31 | 810 | 251 | 1,608 | 149 |
| 2011 | 1,243 | 741 | 267 | 227 | 1.44 | 283 | 67 | 217 | — | 163 | 31 | 735 | 100 | 1,731 | 157 |
| 2010 | 1,092 | 655 | 240 | 190 | 1.23 | 188 | 57 | 131 | — | 131 | 30 | 489 | 0 | 1,288 | 155 |
| 2009 | 921 | 554 | 190 | 146 | 0.95 | 239 | 110 | 129 | — | 69 | 26 | 416 | — | 1,115 | 154 |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.