Stock fact sheet · data as of
ResMed Inc. (RMD): fair value, margin of safety and Wheel Score
Healthcare · Medical - Instruments & Supplies · United States · High Growth
Is RMD undervalued?
ResMed Inc. (RMD) closed at 235.29 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 307.44, so the price sits 23% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between DDM (36.20) and Payback Time (763.55). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files RMD under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for RMD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 336.20 | +43% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 103.82 | -56% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 270.57 | +15% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 93.62 | -60% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 580.78 | +147% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 465.21 | +98% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 763.55 | +225% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 36.20 | -85% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 116.96 | -50% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 13.82 | -94% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 243.56 | +4% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
ResMed Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 9.0/10 puts RMD among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 20.6%, ROE 23.1%, ROA 17.0% - with debt at 0.13 times equity and a free-cash-flow yield of 8.7%.
The dividend yield is 1.05% with a payout ratio of 40% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Sleep And Respiratory 88%, Residential Care Software 12% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 3/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 20.6% |
|---|---|---|---|
| GLS Moat | 9.0 / 10 | ROE | 23.1% |
| Debt / equity | 0.13 | ROA | 17.0% |
| Free-cash-flow yield | 8.7% | Payout ratio | 40% |
| Institutions | 9 / 10 | Insiders · Congress | 3 · 10 / 10 |
Wheel Score 87: Prime
With a Wheel Score of 87, ResMed Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 22/25, Health 13/20, Moat 14/15, Premium 20/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 40% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 23,320 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.0M shares a day on a market cap of $33.1B, with a beta of 0.75 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 22 / 25 | 23% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 14 / 15 | moat 9.0/10 | |
| Premium | 20 / 20 | implied volatility 40% | |
| Stability | 18 / 20 | 1.0M shares/day, $33.1B cap, beta 0.75 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
ResMed Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Medical - Instruments & Supplies
The 12 companies below are the closest to ResMed Inc. by market cap within the Medical - Instruments & Supplies industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MDLN Medline Inc. | 36.57 | 37.97 | +4% | 80Prime | $32.1B |
| WST West Pharmaceutical Services, Inc. | 374.65 | 104.99 | -257% | 65Good | $26.4B |
| BDX Becton, Dickinson and Company | 193.76 | 145.93 | -33% | 57Fair | $52.8B |
| SOLV Solventum Corporation | 87.26 | 100.23 | +13% | 79Good | $14.9B |
| BAX Baxter International Inc. | 25.76 | 24.77 | -4% | 45Weak | $13.3B |
| RGEN Repligen Corporation | 178.20 | 25.50 | -599% | 58Fair | $11.3B |
| COO The Cooper Companies, Inc. | 57.40 | 51.06 | -12% | 65Good | $10.9B |
| AVTR Avantor, Inc. | 16.09 | 17.57 | +8% | 45Weak | $10.9B |
| ATR AptarGroup, Inc. | 124.26 | 102.12 | -22% | 60Fair | $7.9B |
| ISRG Intuitive Surgical, Inc. | 427.86 | 228.86 | -87% | 68Good | $151.2B |
| BLCO Bausch + Lomb Corporation | 16.66 | 10.95 | -52% | 45Weak | $6.0B |
| MMSI Merit Medical Systems, Inc. | 89.57 | 65.92 | -36% | 59Fair | $5.3B |
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Start free See the Sunday ScanQuestions about RMD
Is RMD undervalued right now?
By the GLS models, moderately: at 235.29 the stock trades 23% below the average fair value of 307.44 (data as of 16 Oct 2026).
What is the Wheel Score of RMD and what does it mean?
RMD scores 87 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RMD?
307.44 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does ResMed Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (after the close), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RMD have listed options, and how liquid are they?
Yes. The nightly snapshot found 318 listed contracts with 23,320 open interest across all expiries and implied volatility of 40% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.