Is ResMed CDI (ASX:RMD) Share Price Undervalued in 2025? Six Metrics That Matter

Highlights:

• ResMed operates in the medical equipment sector with a global footprint

• The company specialises in CPAP systems and healthcare-focused software

• Share price has declined since the start of the year

ResMed CDI (ASX:RMD) operates in the medical equipment sector, with a focus on sleep and respiratory care. The company also develops cloud-based software for out-of-hospital healthcare services. This dual structure places ResMed in both the medical device and health technology space. As a global player, it is headquartered in the United States but maintains historical ties to Australia, where its founder established the original operations.

Business Structure and Global Reach
ResMed operates through two key business units. The first is Sleep and Respiratory Care, which includes a wide range of products for managing obstructive sleep apnea and other respiratory conditions. These products include CPAP machines, ventilators, masks, and humidifiers. The second business unit is Software as a Service, which provides cloud-based solutions to support healthcare providers in home-based and durable medical equipment management. The company has a presence in over a hundred countries and employs thousands of staff globally.

Product Offering in Sleep and Respiratory Care
ResMed’s Sleep and Respiratory Care business focuses on helping individuals with sleep disorders and chronic respiratory conditions. The CPAP systems are designed to provide continuous positive airway pressure to maintain open airways during sleep. These systems range from basic models to advanced machines with remote data monitoring capabilities. In addition, the company offers ventilatory support for individuals requiring ongoing respiratory care, whether non-invasive or life-support systems.

Software-Driven Healthcare Solutions
Under the SaaS business model, ResMed delivers software platforms that streamline operations for home medical equipment providers. This includes tools for inventory management, patient compliance tracking, and data-driven insights. These solutions are aimed at increasing operational efficiency and improving healthcare delivery beyond the hospital environment. The software integrates seamlessly with the company’s hardware, enabling data collection and outcome analysis.

Use of Integrated Data and Technology
The integration of hardware and software allows ResMed to collect valuable data across its user base. This data supports efforts to personalise therapy and track patient outcomes over time. It also contributes to broader health system goals, such as reducing hospital readmissions and lowering total healthcare costs. By leveraging cloud connectivity, ResMed products offer remote access to performance data and compliance metrics, assisting clinicians in monitoring therapy progress.

ResMed Share Price Performance in the Current Year
Since the beginning of the year, the ResMed CDI share price has declined. The drop places attention on how the company is valued on the ASX. As a foreign-domiciled issuer, ResMed reports financials in the format used by US-listed companies. This can lead to differences in presentation compared to other companies listed solely on the ASX. Despite these differences, the underlying business fundamentals remain linked to product demand, innovation in therapy solutions, and uptake of digital health tools.

Regulatory and Reporting Environment
Being primarily listed in the United States, ResMed complies with reporting standards applicable to that jurisdiction. These include disclosures related to product performance, clinical trials, revenue segmentation, and forward-looking business activities. The Australian listing exists in the form of CDIs, which represent beneficial ownership of the US-listed shares. Investors on the ASX therefore interact with the company through a different legal structure while retaining economic exposure.

Revenue Streams and Market Focus
Revenue is generated through both equipment sales and recurring software subscriptions. The hardware business benefits from new product launches and replacement cycles, while the software segment brings recurring income. Market focus includes both developed and emerging economies, with a concentration in regions that have established reimbursement frameworks for sleep apnea and respiratory care.

Key Areas of Innovation
Innovation remains central to ResMed’s approach. This includes continuous updates to mask design, connectivity features, and patient interface improvements. On the software side, developments involve predictive insights and automation tools for clinicians and service providers. The alignment between product engineering and clinical application drives efficiency and enhances user experience across the care continuum.