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ResMed is a medical instruments & supplies business based in Australia. ResMed shares (RMD) are listed on the Australian Securities Exchange (ASX) and all prices are in Australian dollars. ResMed has a trailing 12-month revenue of around $4.7 billion. If you're looking to buy shares, check out the steps below.
How to buy shares in ResMed
To buy shares listed in Australia such as ResMed, you'll need to sign up to a broker with access to the ASX. Our table can help you compare share trading platforms and choose or you can see our list of the best share trading platforms in Australia. Then follow these steps.
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Open and fund your brokerage account. Complete an application with your personal and financial details, including your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
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Search for ResMed. Find the share by name or ticker symbol: RMD. Research its history to confirm it's a solid investment against your financial goals.
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Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until ResMed reaches your desired price. Look into dollar-cost averaging to spread out your risk, which smooths out buying at consistent intervals and amounts.
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Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
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Check on your investment. Congratulations, you own a part of ResMed. Optimise your portfolio by tracking how your stock and the business performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that affect your stock.
ResMed shares at a glance
Information last updated 2024-10-12.
| 52-week range | $20.8691 - $37.99 |
|---|---|
| 50-day moving average | $34.971 |
| 200-day moving average | $30.9593 |
| Target price | $35.09 |
| PE ratio | 34.1748 |
| Dividend yield | $1.92 (0.89%) |
| Earnings per share (TTM) | $1.03 |
Where to buy ResMed shares
The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
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Is it a good time to buy ResMed stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
ResMed price performance over time
Historical closes compared with the last close of A$35.2
| 1 week (2024-10-04) | 1.56% |
|---|---|
| 1 month (2024-09-13) | -4.56% |
| 3 months (2024-07-12) | 17.73% |
| 6 months (2024-04-12) | 20.55% |
| 1 year (2023-10-13) | 63.42% |
|---|---|
| 2 years (2022-10-14) | 3.10% |
| 3 years (2021-10-14) | 2.06% |
| 5 years (2019-10-14) | 84.00% |
Is ResMed under- or over-valued?
Valuing ResMed stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of ResMed's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
ResMed's P/E ratio
ResMed's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 34x. In other words, ResMed shares trade at around 34x recent earnings.
That's relatively high compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
ResMed's PEG ratio
ResMed's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.9824. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into ResMed's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
ResMed's EBITDA
ResMed's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.5 billion (£0.0 million).
The EBITDA is a measure of a ResMed's overall financial performance and is widely used to measure stock profitability.
ResMed financials
| Revenue TTM | $4.7 billion |
|---|---|
| Operating margin TTM | 31.17% |
| Gross profit TTM | $2.4 billion |
| Return on assets TTM | 12.7% |
| Return on equity TTM | 22.7% |
| Profit margin | 21.79% |
| Book value | 33.111 |
| Market capitalisation | $52 billion |
TTM: trailing 12 months
ResMed share dividends
Dividend payout ratio: 78.37% of net profits
Recently ResMed has paid out, on average, around 78.37% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.89% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), ResMed shareholders could enjoy a 0.89% return on their shares, in the form of dividend payments. In ResMed's case, that would currently equate to about A$1.92 per share.
ResMed's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 13 August 2024 (the "ex-dividend date").
Have ResMed's shares ever split?
ResMed's shares were split on a 2:1 basis on 11 August 2010. So if you had owned 1 share the day before the split, the next day you would own 2 shares. This wouldn't directly have changed the overall worth of your ResMed shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for ResMed shares which in turn could have impacted ResMed's share price.
ResMed share price volatility
Over the last 12 months, ResMed's shares have ranged in value from as little as $20.8691 up to $37.99. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (AU average) beta is 1, while ResMed's is 0.689. This would suggest that ResMed's shares are less volatile than average (for this exchange).
ResMed overview
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN's software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
ResMed in the news
Are You a Momentum Investor? This 1 Stock Could Be the Perfect Pick
ResMed (RMD) Debuts the Smallest Full-Face CPAP Mask AirFit F40
Introducing the AirFit F40: Experience Unprecedented Freedom with the Comfort and Optimized Seal Performance of ResMed’s Smallest Full-Face CPAP Mask
Frequently asked questions
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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