ResMed stock reaches cheapest multiple in a decade amid analyst optimism

ResMed Inc (ASX:RMD) shares have fallen roughly 30% from a year earlier and are now trading at about 16 times forward earnings, the lowest multiple for the company in more than a decade. The decline follows concerns about emerging GLP‑1 weight‑loss drugs, a broader healthcare sector rout after new U.S. tariffs, and potential competition from Philips, which plans to re‑enter the U.S. PAP market in 2027. Despite the sell‑off, the company reported solid FY26 third‑quarter results on 30 April: revenue rose 11 % to US$1.43 billion, gross margin improved by 290 basis points to 62.2 %, operating income increased 17 % and non‑GAAP EPS grew 21 % to US$2.86. The board declared a US$0.60 per‑share dividend and repurchased roughly US$175 million of stock. Morgans maintains a buy rating with a US$41.72 price target, arguing the de‑rating is not justified by the underlying performance.

ResMed, founded in Australia but now headquartered in San Diego, lists on both the NYSE and the ASX and operates in more than 140 countries with over 10,000 employees. Its business spans sleep‑apnea devices, broader respiratory‑care equipment and a SaaS platform that supports durable medical equipment. A separate investment note also highlighted QBE Insurance Group as a comparative ASX stock, noting its global footprint across 27 countries.