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ResMed Inc RMD

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

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Economic Moat

PREMIUM

Capital Allocation

PREMIUM

ResMed has a Strong Start to Fiscal 2022 as Expected; FVE Unchanged

Shane Ponraj, CFA Equity Analyst

Analyst Note

| Shane Ponraj, CFA |

Narrow-moat ResMed’s first-quarter fiscal 2022 underlying EBIT was strong as expected, up 18% to USD 281 million on the prior corresponding period, or pcp. The result was driven by continued elevated demand for its devices following Philips’ product recall, with device sales up 32% pcp to USD 494 million. ResMed is also benefitting from new sleep apnea diagnosis rates recovering to pre-pandemic levels, as well as the U.S. launch of its new flagship product, AirSense 11, in August 2021.

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Company Profile

Business Description

ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with ageing populations and increasing prevalence of obesity is resulting in a structurally growing market. The company earns roughly two thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor and payer in the out-of-hospital setting.

Contact
9001 Spectrum Center Boulevard
San Diego, CA, 92123
T +1 858 836-5000
Sector Healthcare
Industry Medical Instruments & Supplies
Most Recent Earnings Sep 30, 2021
Fiscal Year End Jun 30, 2022
Stock Type Aggressive Growth
Employees 7,970