Ramsay Health Care (RHC) AI Stock Analysis

• Market Cap: $7.88B
• Dividend Yield: 2.4%
• Average Volume (3M): 650.74K
• Price to Earnings (P/E): 963.2
• Beta (1Y): 1.13
• Revenue Growth: 7.25%
• EPS Growth: -99.04%
• Country: AU
• Employees: 90,000
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Care Facilities
• EPS (TTM): 0.65
• Shares Outstanding: 230,829,800
• 10 Day Avg. Volume: 579,561
• 30 Day Avg. Volume: 650,744
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $39.53
• Price Target Upside: 7.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

Ramsay Health Care exhibits strong financial performance with growing revenue and improving profitability metrics, underpinning its resilience. However, the technical analysis presents mixed signals with short-term momentum but longer-term challenges. The valuation is concerning due to a very high P/E ratio, suggesting potential overvaluation despite a reasonable dividend yield. Collectively, these factors yield a moderate stock score, reflecting strengths in financial performance but caution in valuation and mixed technical indicators.

Ramsay Health Care Business Overview & Revenue Model

Company Description

Ramsay Health Care Limited owns and operates hospitals. The company also offers health care services to public and private patients. It operates facilities in approximately 532 locations in the Asia Pacific, the United Kingdom, France, and Nordics. The company was founded in 1964 and is based in Sydney, Australia.

How the Company Makes Money

Ramsay Health Care generates revenue primarily through the operation of its network of hospitals and healthcare facilities. The company charges for medical services and procedures provided to patients, including surgeries, consultations, and inpatient care. Ramsay Health Care also earns income from ancillary services such as pathology, radiology, and pharmacy services offered within its facilities. Additionally, the company benefits from partnerships with healthcare providers, government health programs, and private health insurers, which help facilitate patient referrals and reimbursements. Revenue is further supported by Ramsay's international operations, which contribute to its diversified income streams across various markets.

Ramsay Health Care Financial Statement Overview

Summary

Ramsay Health Care demonstrates strong revenue growth and improved profitability margins. The balance sheet shows a healthier leverage position and improved equity metrics. Cash flows are stable, although free cash flow shows a slight decline. Overall, the company is on a positive trajectory, but attention to cost management and free cash flow growth could enhance financial stability further.

Income Statement

Ramsay Health Care shows strong revenue growth over recent years, with a notable increase of 12.13% from 2023 to 2024. The gross profit margin decreased from 77.47% in 2023 to 12.13% in 2024, indicating cost pressures. However, net profit margins have improved significantly, reaching 5.33% in 2024 compared to 2.01% in 2023. This improvement is supported by an increase in EBIT margin from 4.44% to 5.62% over the same period.

Balance Sheet

The company's debt-to-equity ratio has improved slightly from 2.86 in 2023 to 2.23 in 2024, reflecting a better leverage position. Return on equity (ROE) increased to 18.15% in 2024, from 7.18% in 2023, showcasing an enhanced ability to generate profits from shareholders' equity. The equity ratio rose from 19.76% to 23.43%, indicating a stronger equity position relative to assets.

Cash Flow

Operating cash flow has remained relatively stable, with a slight increase to $1.29 billion in 2024. Free cash flow to net income ratio is strong at 0.61. However, free cash flow growth has slightly decreased, showing a decline from 2023 to 2024. The operating cash flow to net income ratio improved to 1.45 in 2024, indicating efficient cash generation relative to profits.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
16.56B	14.86B	13.08B	12.35B	11.93B
	Gross Profit
1.92B	11.52B	9.97B	9.34B	9.21B
	EBIT
936.90M	660.30M	460.90M	690.70M	689.00M
	EBITDA
1.81B	2.03B	1.84B	2.03B	1.77B
	Net Income Common Stockholders
888.70M	298.10M	274.00M	449.00M	284.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
662.30M	656.10M	314.20M	1.00B	1.50B
	Total Assets
20.89B	21.03B	19.47B	19.32B	18.06B
	Total Debt
10.94B	11.89B	10.70B	10.55B	9.52B
	Net Debt
10.28B	11.23B	10.38B	9.55B	8.01B
	Total Liabilities
15.37B	16.21B	14.95B	14.77B	13.82B
	Stockholders Equity
4.90B	4.15B	3.93B	4.03B	3.75B
Cash Flow		Free Cash Flow
539.00M	558.70M	7.00M	852.30M	1.00B
	Operating Cash Flow
1.29B	1.28B	715.50M	1.48B	1.68B
	Investing Cash Flow
159.70M	-713.80M	30.00M	-2.50B	-656.00M
	Financing Cash Flow
-1.45B	-242.40M	-1.41B	584.00M	-231.90M

Ramsay Health Care Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHC, the sentiment is Positive. The current price of 36.68 is above the 20-day moving average (MA) of 33.64, above the 50-day MA of 33.91, and below the 200-day MA of 37.54, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 88.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RHC.

Ramsay Health Care Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	73 Outperform	AU$12.56B	22.85	6.86%	3.99%	10.15%	6.20%
IDX	58 Neutral	AU$957.14M	105.76	1.14%	2.26%	7.83%	―
RHC	55 Neutral	$7.88B	963.20	0.52%	2.40%	7.25%	-99.04%
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.53%

Ramsay Health Care Corporate Events

Ramsay Health Care Announces New Dividend Distribution

Ramsay Health Care Limited has announced a new dividend distribution for its security RHCPA, with a distribution amount of AUD 3.0748. The dividend relates to a six-month period ending on October 19, 2025, with the payment date set for October 20, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its stakeholders.

Ramsay Health Care Announces CFO Transition

Ramsay Health Care has announced a transition in its financial leadership, with Group CFO Martyn Roberts set to depart at the end of April 2025. Deputy CFO Mike Hirner will step in as Acting Group CFO starting 1 May 2025, while the search for a permanent replacement is ongoing. This leadership change is part of Ramsay’s strategic efforts to maintain stability and continuity in its financial operations, potentially impacting its market positioning and stakeholder confidence.

Ramsay Health Care Substantial Holder Interest Change

Ramsay Health Care Limited has announced a change in the interests of a substantial holder, with State Street Bank and Trust Company and its affiliates holding significant voting power in the company. This change in shareholding structure indicates a shift in the control dynamics within Ramsay Health Care, potentially impacting its strategic decisions and influencing its market positioning.

Ramsay Health Care Issues New Performance Rights

Ramsay Health Care Limited announced the issuance of 4,456 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s ongoing commitment to incentivizing its workforce, potentially enhancing employee engagement and aligning staff interests with corporate goals.

Ramsay Health Care Announces Cessation of Performance Rights

Ramsay Health Care Limited announced the cessation of 27,227 performance rights due to the lapse of conditional rights, as the conditions for these securities were not met or became incapable of being satisfied. This announcement may impact the company’s financial structuring and could influence stakeholder perceptions regarding the company’s operational performance and strategic direction.

Ramsay Health Care Updates Dividend Distribution Details

Ramsay Health Care Limited has announced an update regarding its dividend distribution, specifically an amendment to the Dividend Reinvestment Plan (DRP) price. This update pertains to the dividend for the six-month period ending December 31, 2024, with key dates including a record date of March 7, 2025, and an ex-date of March 6, 2025. The announcement reflects Ramsay’s ongoing commitment to shareholder returns and may impact investor decisions and market perceptions.

Allan Gray Australia Acquires Substantial Stake in Ramsay Health Care

Allan Gray Australia Pty Ltd has become a substantial holder in Ramsay Health Care Limited, holding 5.07% of the voting power with 11,679,304 ordinary shares. This development may influence Ramsay Health Care’s shareholder dynamics and could have implications for its strategic decisions and stakeholder relations.

Allan Gray Australia Acquires Substantial Stake in Ramsay Health Care

Allan Gray Australia Pty Ltd has become a substantial holder in Ramsay Health Care, acquiring a 5.07% voting power with 11,679,304 ordinary shares. This development signifies a significant investment move that could influence Ramsay Health Care’s strategic decisions and market positioning, potentially impacting stakeholders and the company’s future operations.

Ramsay Health Care Updates Securities Trading Policy

Ramsay Health Care has updated its Securities Trading Policy, which has been lodged with the ASX in compliance with listing requirements. This revision reflects the company’s commitment to maintaining robust corporate governance practices, which is crucial for its operational integrity and stakeholder trust.

Ramsay Health Care Confirms Dividend Payment for April 2025

Ramsay Health Care Limited has announced the payment of a dividend related to its TRANS PREF 6-BBSW+ 4.85% PERP SUB RED T-10-10 securities. The decision to pay the dividend, initially conditional upon board approval, has been confirmed, with the payment scheduled for April 22, 2025. This announcement underscores Ramsay’s commitment to fulfilling its financial obligations and may positively impact investor confidence.

Ramsay Health Care Announces Dividend Distribution

Ramsay Health Care Limited announced a dividend distribution of AUD 0.40 per share for the period ending December 31, 2024. The ex-dividend date is set for March 6, 2025, with the record date on March 7, 2025, and payment scheduled for March 27, 2025. This announcement reflects the company’s commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Ramsay Health Care Announces Key Financial Dates for 2025

Ramsay Health Care has announced its key financial dates for 2025, including interim and final dividend payment schedules for ordinary shares and CARES, as well as significant corporate events such as the Annual General Meeting. These announcements are crucial for stakeholders as they outline the company’s financial timeline and governance activities for the year, impacting investor expectations and strategic planning.

Ramsay Health Care Reports Growth Amid Strategic Transformation

Ramsay Health Care reported growth in activity and revenue across all regions, with significant performance improvements in its UK and Australian hospital businesses. Despite these gains, profitability was impacted by challenges in Elysium and Ramsay Santé, leading to a net loss after tax. The company is undergoing a strategic transformation, focusing on its Australian operations, strengthening capital discipline, and exploring strategic options for Ramsay Santé. Leadership changes and a new operating model aim to streamline operations and enhance performance, while maintaining a fully franked dividend of 40 cents per share.

Ramsay Health Care Releases Half-Year Financial Report

Ramsay Health Care has released its half-year financial report for the period ending December 31, 2024. The report will be discussed in a presentation by the company’s Managing Director and CEO, Natalie Davis, and Group CFO, Martyn Roberts. This announcement is significant as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Ramsay Health Care Sees Shift in Substantial Holder Interests

Ramsay Health Care has experienced a change in the interests of a substantial holder, with State Street Global Advisors and its subsidiaries now holding significant voting power in the company. This shift in voting interests may impact Ramsay Health Care’s decision-making processes and influence its strategic direction, potentially affecting stakeholders and market positioning.

Ramsay Health Care Announces Significant Financial Adjustments

Ramsay Health Care announced two significant non-recurring financial impacts for the six months ending December 2024: a $291 million impairment in its UK segment due to challenges in its Elysium mental health services, and the release of a $64.5 million tax provision related to its Ramsay Santé acquisition. The company is taking steps to improve Elysium’s operational rigour, including appointing a new COO and halting site expansion, while focusing on its core UK hospital business, which is showing strengthened performance. Despite these efforts, Ramsay does not expect growth in NPAT for FY25 due to the impairment.