Company Overview - ResMed, founded in 1989 and headquartered in San Diego, specializes in medical equipment, particularly cloud-connectable CPAP machines for obstructive sleep apnea treatment [1] - The company operates in over 140 countries with more than 10,000 employees and has two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS) [2] Business Model and Technology - ResMed's digital health network leverages cloud-connected devices to enhance patient outcomes and reduce healthcare costs through valuable insights generated from its hardware and SaaS data [3] Market Performance - The S&P/ASX200 Healthcare Index has returned -2.11% annually over the last 5 years, contrasting with an 8.69% return from the broader ASX 200 [4] - Healthcare spending is considered essential, leading to stable and consistent revenue streams, often referred to as 'sticky' revenue, which performed well during economic downturns [5] Growth Potential - Global healthcare spending, particularly in the US, is projected to grow at 7% per year from 2022 to 2027, reaching US$819 billion [6] - Sub-sectors like healthcare IT and SaaS are expected to see revenue growth exceeding 15% per year from 2024 to 2030 [7] Investment Trends - A Morgan Stanley survey indicates that over half of investors plan to increase their allocation to sustainable investments in 2024, positioning healthcare sectors favorably for attracting new capital [8] Valuation Metrics - ResMed shares currently have a price-sales ratio of 5.70x, below the 5-year average of 8.70x, suggesting potential undervaluation or increased sales [9][10]

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]