MIN and ResMed: 2 ASX Shares Under The Valuation Microscope

Highlights

• Mineral Resources mixes lithium, iron ore and mining services

• ResMed combines sleep apnoea devices with healthcare software

• Both trade below their five-year average price-to-sales multiples

Mineral Resources and ResMed offer very different exposures – from lithium and iron ore to sleep apnoea devices and healthcare software – and both currently trade on price-to-sales multiples below their five-year averages.

Mineral Resources Ltd (ASX:MIN) and ResMed CDI (ASX:RMD) have both attracted renewed attention as their share prices recover from earlier levels. Mineral Resources has posted a strong rise since the start of 2025, while ResMed has climbed away from its recent lows. That has naturally led to the question: how is the market pricing these businesses now, and what might those valuations be telling observers?

Rather than trying to label either share as “cheap” or “expensive”, it helps to understand what each company actually does, how their businesses generate revenue, and what simple valuation markers such as price-to-sales ratios can and cannot reveal.

Mineral Resources (ASX:MIN): mining, services and in-house capability

What does MIN do?

Mineral Resources Limited is a diversified Australian resources group with a focus on lithium and iron ore across Western Australia. It runs a mix of mining, processing and infrastructure operations, giving it exposure to both traditional steel-related demand and the growing battery and energy-transition thematic.

The company’s lithium interests place it in the supply chain for key battery materials, while its iron ore operations continue to tap into long-term demand for steel in construction and infrastructure. This blend of commodities means MIN straddles both established and emerging parts of the resources landscape.

CSI Mining Services: a second earnings engine

MIN also owns CSI Mining Services, a wholly owned subsidiary that provides mining and engineering services to external clients. CSI offers crushing, processing, materials handling and other specialist services across Western Australia, Queensland and the Northern Territory.

By operating a substantial services arm, Mineral Resources can:

• Generate income from third-party projects, not just its own mines

• Showcase its engineering and operational expertise

• Potentially smooth earnings across commodity cycles

This combination of owned resources and contract services sets MIN apart from many peers that focus solely on production.

In-house engineering: control and flexibility

Another key part of the MIN story is its in-house engineering and construction capability. By handling much of its own design and project work, the company aims to maintain greater control over:

• Project timelines

• Construction quality

• Capital and operating costs

In a sector where delays and cost overruns can significantly affect returns, having internal capability can be a competitive advantage. It allows Mineral Resources to respond more quickly to opportunities, adapt to changing conditions on site and align project delivery more closely with strategic goals.

ResMed CDI (ASX:RMD): sleep, breathing and healthcare software

What does ResMed do?

ResMed began in Australia in the late nineteen-eighties and is now headquartered in San Diego, with shares listed in both the United States and Australia. The company specialises in medical equipment and digital solutions for sleep and respiratory care, with a particular focus on obstructive sleep apnoea.

Its devices and platforms are used in homes and healthcare facilities around the world, helping patients manage conditions that affect breathing during sleep and beyond.

Two main business units

ResMed’s operations are organised into two major segments:

• Sleep and Respiratory Care

  • Cloud-connectable CPAP (continuous positive airway pressure) devices

  • Masks and accessories for sleep apnoea treatment

  • Non-invasive and invasive ventilators for life-support and respiratory care

• Software as a Service (SaaS)

  • Software platforms that support durable medical equipment providers

  • Tools that assist with patient management, compliance, billing and logistics

  • Systems that help enable out-of-hospital and home-based care

Together, these units position ResMed at the intersection of medtech and digital health. Devices generate recurring mask and accessory demand, while software deepens relationships with healthcare providers and embeds the company in day-to-day clinical workflows.

Global footprint

ResMed has a large international presence, with operations in well over one hundred countries and a workforce in the five-figure range. Its growth is influenced by:

• Rising awareness and diagnosis of sleep apnoea

• Ageing populations and chronic respiratory conditions

• Shifts toward home-based and digitally supported healthcare

This combination of demographic and structural trends is central to how the market views RMD.

How are MIN and RMD being valued on a simple price-to-sales basis?

The text you provided uses price-to-sales (P/S) ratios as a quick way of seeing how each company’s current valuation compares with its own recent history. P/S is calculated by dividing a company’s market value by its annual revenue.

Mineral Resources: P/S below its five-year average

Recent data cited in the article suggests:

• MIN’s current price-to-sales ratio is below its five-year average.

In plain terms, the market is now paying fewer dollars for each dollar of Mineral Resources’ revenue than it has, on average, over the last five years. In this case, the article notes that MIN’s revenue has been growing over the past three years, so the lower multiple could reflect:

• The share price not rising as quickly as revenue, or

• Revenue growing strongly, or

• A combination of both

On its own, a P/S below the historical average does not automatically mean that the share is attractively priced. It may indicate that the market is being more cautious about future margins, growth or risk than it once was.

ResMed: also trading below its long-term P/S average

For ResMed, the article notes that:

• RMD’s current price-to-sales ratio is also below its five-year average.

This suggests the market is now valuing each dollar of ResMed’s revenue more conservatively than it has over much of the past half-decade. Reasons could include:

• Heightened focus on competition and pricing

• Questions about long-term growth rates

• Shifts in sentiment toward medtech and high-multiple growth names

Again, this is a single metric. It offers a useful snapshot, but it does not capture full context around profitability, margins, cash flow or future growth.

Why a single multiple is only a starting point

The text emphasises an important caution: no single ratio should drive an investment decision. A P/S comparison can prompt good questions, such as:

• Why is the multiple higher or lower than usual?

• Have margins, growth or risk changed?

• How do these ratios compare with those of peers?

But it cannot, by itself, capture the quality of earnings, the durability of competitive advantages, the strength of balance sheets or the likelihood of future growth.

More complete valuation approaches – such as Discounted Cash Flow (DCF) or Dividend Discount Models (DDM) – attempt to estimate the present value of the cash a business may generate over time. These methods involve detailed assumptions about:

• Revenue growth

• Profit margins

• Capital expenditure and reinvestment needs

• Balance sheet structure and risk

While they are never perfect, they provide a more structured framework than relying on one ratio alone.

What might investors weigh when researching MIN and RMD?

Anyone exploring these two companies further might consider:

For Mineral Resources

• How sustainable current lithium and iron ore demand may be in light of global economic conditions and the energy transition

• The balance between MIN’s owned resources and its contract mining and engineering activities

• The capital intensity and execution risk of upcoming projects

• How in-house engineering and services capability contributes to long-term margins

For ResMed

• The competitive landscape in sleep apnoea devices and respiratory care

• The pace of growth in its SaaS segment, and how software deepens its role in healthcare delivery

• The impact of reimbursement and policy settings across key markets

• How demographic trends and rising awareness of sleep health may support long-term demand

In all cases, this kind of analysis should be seen as general information. Assessing whether these shares suit a specific portfolio depends on individual goals, time frames and tolerance for risk, and is best done with appropriate personal advice.