RMD Stock Analysis — ResMed
Sector: Healthcare
AI Verdict
At 17.1x forward earnings and deeply oversold RSI, this is cheap for the growth on offer if ResMed's device and data platform keeps competitors at bay.
Competitive Moat
ResMed dominates the sleep apnea device market with a vast installed base and recurring revenue from consumables, making it hard for new entrants to displace existing patients. Its proprietary cloud-connected devices and patient data platform create switching costs for providers and patients alike.
Summary
RSI at 23.8 signals extreme oversold territory after a -19.74% one-year return, putting ResMed on value-watch lists.
Where It Stands
ResMed trades at 17.1x next year's earnings, below the healthcare sector median of 22x, with a 12.0% forward EPS growth estimate and an RSI of 23.8 indicating deep oversold conditions.
Key Metrics
- RSI: 23.8 — Oversold
- Trailing P/E: 19.2x
- Forward P/E: 17.1x
- PEG Ratio: 1.21
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $28.8B
- Dividend Yield: 0.01%
- 1-Year Return: -19.74%
- 52-Week High: $293.81
- 52-Week Low: $198.61
Analyst Consensus
16 Buy · 9 Hold · 1 Sell (26 analysts)
Bull Case
With a forward P/E of 17.1x and 12.0% expected EPS growth, you're paying a below-average price for a company with sticky recurring revenue from its device ecosystem.
Bear Case
If the P/E multiple falls further to match companies with no moat, a drop from 17.1x to 14x would mean another 18% downside from here.
Catalyst to Watch
Watch for updates on patient adoption or regulatory changes in sleep apnea treatment—positive momentum could trigger a sharp rebound from oversold levels.