Fundamental analysis RMD (Resmed Inc)
Updated on 08/04/2026
Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.
We analyzed Resmed stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 10/10, meaning high quality, and a P/FCF valuation multiple of 19.8×.
This is the setup we look for: Resmed passes a large majority of our quality criteria while trading at a low free cash flow multiple. That is exactly the "quality company at the right price" profile, the one worth a closer look.
Sector: Medical Instruments & Supplies. Listing: US. Current price: 223.24 USD.
Lubin scoring methodology
Resmed Inc (RMD)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.
The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).
Resmed's accounts are public: you can check every figure in its official 10-K filings with the SEC (EDGAR).
The 10 quantitative criteria analyzed
- Profitable: net margin > 5%
- Growing revenue: revenue growing > 10%/year over 5 years
- Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
- Share count under control: stable or declining (net buybacks = value creation for shareholders)
- Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
- Expanding margins: operating margin widens over 5 years (operating leverage)
- Return on invested capital: Cash ROCE > 15% per year
- Debt under control: net debt repayable in less than 3 years of free cash flow
- Earnings converted to cash: free cash flow exceeds accounting net income
- Net collection period: short or negative cash conversion cycle
Its price against peers
Against the 5 other Medical Instruments & Supplies stocks we have scored, Resmed trades at 19.8× its free cash flow, versus a median of 28.0× for that basket. On price alone, Resmed is therefore cheaper than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.
Frequently asked questions
Is Resmed a quality stock?
Resmed gets a quality score of 10/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.
How is Resmed's score calculated?
The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.
What is Resmed's P/FCF?
The price-to-free-cash-flow (P/FCF) multiple of Resmed stock is 19.8×. At Lubin Investment, valuation is judged separately from quality.
Where to see Resmed's full analysis?
The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/RMD?lng=en.
Articles about Resmed
Other stocks in the Medical Instruments & Supplies sector
- Asahi Intecc (7747.T), score 10/10, P/FCF 30.8×
- ResMed (RMD.AX), score 9/10, P/FCF 28.0×
- LeMaitre Vascular (LMAT), score 9/10, P/FCF 26.1×
- Fielmann Group (FIE.DE), score 9/10, P/FCF 8.6×
Go further
👉 See the full interactive analysis of RMD
Other resources : All stocks in the Medical Instruments & Supplies sector.