ResMed Inc. (RMD)
Quantitative Summary
DeterministicAt 18.4x earnings — a 72% discount to the sector average of 65.2x — RMD is in the lower valuation range. Financial health metrics are strong: Piotroski 7/9, Altman Z 11.8 (above 3.0 safe zone threshold). DCF fair value of $290 implies 26% upside from current prices based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedResMed demonstrates robust fundamental economics characterized by a significant 8.4% spread between its return on invested capital and weighted average cost of capital, indicating efficient value creation relative to financing costs. This efficiency is underpinned primarily by exceptional net margins at 27.2%, which drive the overall 23.5% ROE more than asset turnover or leverage, evidenced by a low equity multiplier of 1.37x and moderate turnover of 0.63x. Financial integrity appears strong with an Altman Z-Score of 12.1 suggesting minimal bankruptcy risk, while a Beneish M-Score of -2.62 points to low earnings manipulation probability; however, the high Piotroski F-Score of 7/9 confirms consistent financial strength without indicating recent deterioration in operating cash flow or leverage ratios.
Valuation metrics present a divergence between current market pricing and intrinsic value models derived from discounted cash flows. The stock trades at a P/E ratio of 22.2x, which is substantially below the sector average of 30.8x, implying that the market may be undervaluing its earnings power relative to peers. A DCF analysis suggests a fair value of $300 per share with an implied upside of 33.7%, based on projected free cash flow growth averaging 10.9% over the next decade. This discount appears significant given the company's high margin profile, yet it must be weighed against the fact that recent factor models have not rewarded the stock; specifically, Fama-French alpha is negative at -0.71%, and both value (HML) and profitability (RMW) factors show neutral to slightly underperforming signals over recent periods.
Insider activity adds a layer of caution to the fundamental thesis, as net selling totaling $6.15 million has occurred within the last 90 days. While the underlying business metrics suggest high quality with low distress risk and attractive margin expansion potential, the combination of negative alpha performance and insider outflows indicates that sophisticated capital may be taking profits or repositioning despite the valuation gap relative to historical norms and sector peers.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 10% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 8.4% | 10.4% | 12.4% |
|---|---|---|---|
| 2% | $350 | $261 | $207 |
| 3% | $405 | $290 | $224 |
| 4% | $484 | $327 | $245 |
Center = base case. Green = >10% upside, Red = >10% downside vs $182.82.
Pre-computed DCF: WACC=10.4%, terminal growth 3%. Fair value $290 (+25.9%). Not investment advice.
Valuation Context
Currently trading 25% below its 5-year average P/E of 30.2x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedResMed (RMD) is trading below both its 50-day and 200-day simple moving averages, indicating a downtrend in the short to medium term, while the relative strength index at 31.6 suggests that the stock may be oversold and due for a bounce back.
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-05-14 | $0.6000 | 0.0% |
| 2026-02-12 | $0.6000 | 0.0% |
| 2025-11-13 | $0.6000 | 0.0% |
| 2025-08-14 | $0.6000 | +13.2% |
| 2025-05-08 | $0.5300 | 0.0% |
| 2025-02-13 | $0.5300 | 0.0% |
| 2024-11-07 | $0.5300 | 0.0% |
| 2024-08-15 | $0.5300 | +10.4% |
| 2024-05-08 | $0.4800 | 0.0% |
| 2024-02-07 | $0.4800 | 0.0% |
| 2023-11-08 | $0.4800 | 0.0% |
| 2023-08-16 | $0.4800 | +9.1% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like IHI or XHE, the fund manager is mechanically forced to buy or sell RMD shares regardless of ResMed Inc.'s individual fundamentals. We estimate $4.8B of passive capital is structurally linked to RMD through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in ResMed Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If ResMed Inc. (RMD) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Abbott Laboratories (ABT) as the most exposed collateral stock, sharing 2 ETFs with RMD. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 33 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
RMD Ownership Dynamics
Passive funds hold 1 in every 6 RMD shares, reducing daily market volatility.
ResMed Inc. (RMD) exerts notable gravity on the passive index market, currently representing 4.5% of the IHI (IHI) and 1.5% of the XHE (XHE). Across 33 tracked ETFs, approximately 23M shares (15.8% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest RMD Exposure
Float lock-up computed from 33 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
RMD Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for ResMed Inc. over the past year sits near $250.38 (16% of 252-day volume). The current price of $182.82 sits 27.0% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level. The highly concentrated volume profile (16% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
RMD Capital Efficiency
How efficiently does ResMed Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
ResMed Inc. converts 86% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. The positive ROIC-WACC spread of 8.2% confirms that reinvested capital creates shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-13 | 9,948 | $203.79 | $2.0M |
| 2026-05-08 | 2,008 | $206.89 | $415,435.12 |
| 2026-05-06 | 417 | $207.88 | $86,685.96 |
| 2026-05-04 | 4,920 | $205.02 | $1.0M |
| 2026-05-01 | 17,589 | $213.81 | $3.8M |
| 2026-04-27 | 846 | $219.85 | $185,993.1 |
| 2026-04-24 | 14,260 | $219.51 | $3.1M |
| 2026-04-22 | 56,021 | $221.22 | $12.4M |
| 2026-04-14 | 29 | $230.26 | $6,677.54 |
| 2026-04-10 | 249 | $227.98 | $56,767.02 |
| 2026-04-09 | 11,969 | $230.70 | $2.8M |
| 2026-04-02 | 66 | $222.85 | $14,708.1 |
| 2026-04-01 | 72 | $224.48 | $16,162.56 |
| 2026-03-30 | 335 | $220.47 | $73,857.45 |
| 2026-03-25 | 56 | $228.19 | $12,778.64 |
| 2026-03-24 | 23 | $227.97 | $5,243.31 |
| 2026-03-23 | 8,320 | $225.99 | $1.9M |
| 2026-03-20 | 8,080 | $227.41 | $1.8M |
| 2026-03-19 | 13,087 | $227.88 | $3.0M |
| 2026-03-16 | 13,014 | $230.84 | $3.0M |
| 2026-03-13 | 18,564 | $232.41 | $4.3M |
| 2026-03-11 | 33,908 | $247.11 | $8.4M |
| 2026-03-10 | 1 | $252.93 | $252.93 |
| 2026-03-09 | 51,405 | $252.87 | $13.0M |
| 2026-03-06 | 255 | $255.32 | $65,106.6 |
| 2026-03-05 | 316 | $259.05 | $81,859.8 |
| 2026-03-04 | 980 | $258.28 | $253,114.4 |
| 2026-03-03 | 1 | $257.39 | $257.39 |
| 2026-03-02 | 5 | $256.26 | $1,281.3 |
| 2026-02-27 | 26 | $257.06 | $6,683.56 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| ALLE | 0.475 | 0.292 | Moderate |
| FTV | 0.467 | 0.538 | Moderate |
| VRTPX | 0.446 | 0.408 | Moderate |
| IDXX | 0.444 | 0.349 | Moderate |
| BAX | 0.435 | 0.502 | Moderate |
| EMR | 0.433 | 0.445 | Moderate |
| MTD | 0.424 | 0.394 | Moderate |
| GEHC | 0.423 | 0.416 | Moderate |
| CSL | 0.419 | 0.353 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare RMD to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.