Are Resmed CDI (ASX:RMD) shares good value in 2025?

Company Overview - ResMed is a medical equipment company based in San Diego, California, originally founded in Australia, specializing in cloud-connectable CPAP machines for obstructive sleep apnea treatment [1] - The company has over 10,000 employees and operates in more than 140 countries, with two primary business units: Sleep and Respiratory Care, and Software as a Service (SaaS) [2] - ResMed's SaaS unit provides software for durable or home medical equipment, assisting in out-of-hospital care [2][3] Financial Performance - ResMed reported an annual revenue of $4,685 million, with a compound annual growth rate (CAGR) of 13.6% over the last three years [5] - The latest reported gross margin for ResMed was 57.4%, indicating strong profitability from core products and services [6] - The company reported a profit of $1,021 million in the last financial year, up from $475 million three years ago, representing a CAGR of 29.1% [7] Financial Health - ResMed's current net debt is -$624 million, indicating that the company has more cash than debt, which can be seen as a safety buffer [9] - The debt/equity ratio for ResMed is 18.0%, suggesting that the company has more equity than debt, indicating lower leverage [10] - The return on equity (ROE) for ResMed was 22.7% in FY24, reflecting efficient capital allocation and value generation [11] Valuation Metrics - ResMed shares currently have a price-to-sales ratio of 5.69x, below the 5-year average of 8.70x, indicating that shares are trading below their historical average [12]