Ramsay Health Care (RHC) AI Stock Analysis

• Market Cap: $7.34B
• Dividend Yield: 2.53%
• Average Volume (3M): 702.16K
• Price to Earnings (P/E): 1079.7
• Beta (1Y): 1.11
• Revenue Growth: 6.82%
• EPS Growth: -99.27%
• Country: AU
• Employees: 90,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.60
• Shares Outstanding: 230,829,800
• 10 Day Avg. Volume: 517,777
• 30 Day Avg. Volume: 702,165
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.82
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 9.79
• Enterprise Value/Ebitda: 13.00
• 1Y Price Target: $36.21
• Price Target Upside: 14.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 50 Neutral
• Price Target: AU$32.00 ▲(1.20% Upside)

Ramsay Health Care's overall stock score is primarily impacted by its financial performance and technical analysis. The company shows stable revenue growth but struggles with profitability and high leverage. Technical indicators suggest bearish momentum, with the stock trading below key moving averages. The high P/E ratio raises valuation concerns, although the dividend yield provides some relief.

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 provision of healthcare services across its network of hospitals and clinics. The company's key revenue streams include patient fees, government healthcare funding, and private health insurance reimbursements. Ramsay Health Care partners with various public health systems, insurers, and other healthcare providers to enhance service delivery and ensure financial stability. Additionally, the company benefits from strategic acquisitions and partnerships that expand its service offerings and geographic footprint, contributing to its overall earnings. Ramsay's revenue is also bolstered by its focus on efficiency and cost management, allowing it to maintain profitability while delivering high-quality patient care.

Ramsay Health Care Financial Statement Overview

Summary

Ramsay Health Care demonstrates stable revenue growth and cash flow improvements, but faces challenges in profitability and high leverage. The company needs to focus on improving net profit margins and managing debt levels to enhance financial stability and shareholder returns.

Income Statement

Ramsay Health Care has shown consistent revenue growth over the years, with a 3.93% increase in the latest year. However, the net profit margin has significantly decreased to 0.13% in 2025 from 5.37% in 2024, indicating pressure on profitability. The gross profit margin remains stable, but the EBIT and EBITDA margins have fluctuated, reflecting operational challenges.

Balance Sheet

The company maintains a high debt-to-equity ratio, which increased to 2.42 in 2025, suggesting significant leverage. Return on equity has dropped sharply to 0.48% from 18.15% in 2024, indicating reduced efficiency in generating returns for shareholders. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Ramsay Health Care's free cash flow growth rate improved by 6.78% in 2025, indicating better cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting effective cash conversion. However, the free cash flow to net income ratio is lower, indicating potential challenges in translating profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.79B	17.79B	16.66B	14.96B	13.08B	12.86B
Gross Profit	2.12B	2.12B	1.61B	1.27B	9.97B	1.59B
EBITDA	1.59B	1.59B	1.81B	1.78B	1.61B	1.80B
Net Income	24.00M	24.00M	888.70M	298.10M	274.00M	449.00M
Balance Sheet
Total Assets	22.48B	22.48B	20.89B	21.03B	19.47B	19.32B
Cash, Cash Equivalents and Short-Term Investments	785.60M	785.60M	662.30M	656.10M	314.20M	1.00B
Total Debt	12.16B	12.16B	10.94B	11.89B	10.70B	10.55B
Total Liabilities	16.77B	16.77B	15.37B	16.21B	14.95B	14.77B
Stockholders Equity	5.02B	5.02B	4.90B	4.15B	3.93B	4.03B
Cash Flow
Free Cash Flow	704.20M	704.20M	539.00M	558.70M	7.00M	852.30M
Operating Cash Flow	1.48B	1.48B	1.29B	1.28B	715.50M	1.48B
Investing Cash Flow	-777.40M	-765.30M	159.70M	-713.80M	30.00M	-2.50B
Financing Cash Flow	-631.20M	-631.20M	-1.45B	-242.40M	-1.41B	584.00M

Ramsay Health Care Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHC, the sentiment is Negative. The current price of 31.62 is below the 20-day moving average (MA) of 32.09, below the 50-day MA of 34.18, and below the 200-day MA of 34.73, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	64 Neutral	AU$10.72B	20.28	6.32%	4.94%	9.44%	-0.37%
ACL	63 Neutral	AU$495.35M	14.75	18.59%	4.94%	6.73%	37.16%
IDX	55 Neutral	AU$973.34M	171.71	0.94%	2.51%	33.54%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RHC	50 Neutral	$7.34B	1,079.73	0.38%	2.53%	6.82%	-99.27%
HLS	50 Neutral	€584.54M	―	-67.21%	―	-23.02%	33.11%
REG	47 Neutral	AU$1.99B	40.49	-276.16%	2.47%	14.61%	―

Ramsay Health Care Corporate Events

Ramsay Health Care Announces Cessation of Securities Due to Unmet Conditions

Ramsay Health Care Limited announced the cessation of certain securities, specifically performance rights, due to unmet conditions. This cessation reflects a lapse in conditional rights, impacting the company’s issued capital and potentially affecting stakeholder perceptions regarding the company’s operational targets and financial strategies.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Ramsay Health Care stock, see the AU:RHC Stock Forecast page.

Ramsay Health Care Appoints Craig Drummond as Non-Executive Director

Ramsay Health Care has appointed Craig Drummond as a Non-Executive Director, effective 1 July 2025. Drummond brings a wealth of experience from the healthcare, financial, and regulated service industries, including leadership roles at Medibank Private Ltd and National Australia Bank. His strategic insights and leadership are expected to support Ramsay’s growth and enhance returns on capital, positioning the company for its next phase of development.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$37.20 price target. To see the full list of analyst forecasts on Ramsay Health Care stock, see the AU:RHC Stock Forecast page.

Ramsay Santé Reports Revenue Growth Amidst Pricing Challenges

Ramsay Santé reported a 5.1% increase in revenue for the nine months ending March 2025, driven by activity growth and acquisitions, despite facing pricing challenges. The company’s EBITDA remained stable, with cost-saving measures helping to offset reduced government funding and inflationary pressures. The expansion of day hospitals and digitalization efforts, including AI in medical reporting and remote monitoring, are enhancing patient care and positioning the company for future growth.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$43.00 price target. To see the full list of analyst forecasts on Ramsay Health Care stock, see the AU:RHC Stock Forecast page.