Ramsay Health Care (AU:RHC)
ASX:RHC
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Ramsay Health Care
(Sydney:RHC)
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Rating:64Neutral
Price Target:
AU$39.00
▼(-5.36% Downside)
Action:Reiterated
Date:03/26/26
The score is driven primarily by pressured profitability and high leverage despite improving cash generation. Offsetting factors include reasonable valuation and a generally positive earnings-call outlook led by Australia growth and capital discipline, while technicals are mixed with weaker near-term price action but a still-supportive longer-term trend.
Positive Factors
Australia operating momentum
Sustained Australia growth drives group fundamentals: rising admissions, core surgical admissions +5.7% and theatre utilisation +1.3% indicate durable volume expansion and mix improvement. A 40bp EBIT margin lift (ex-Joondalup) supports longer-term earnings resilience from its largest market.
Negative Factors
High leverage and debt concentration
Material consolidated debt and concentrated leverage at Ramsay Sante increase refinancing, interest rate and liquidity risk. Even with hedging and recent refinancings, elevated gross leverage limits strategic flexibility, raises financing costs sensitivity and constrains capacity for acquisitions or prolonged turnarounds.
Read all positive and negative factors
Positive Factors
Negative Factors
Australia operating momentum
Sustained Australia growth drives group fundamentals: rising admissions, core surgical admissions +5.7% and theatre utilisation +1.3% indicate durable volume expansion and mix improvement. A 40bp EBIT margin lift (ex-Joondalup) supports longer-term earnings resilience from its largest market.
Read all positive factors
Ramsay Health Care (RHC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$8.33B
Dividend Yield2.25%
Average Volume (3M)804.76K
Price to Earnings (P/E)28.7
Beta (1Y)1.10
Revenue Growth8.65%
EPS Growth3233.99%
CountryAU
Employees90,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.18
Shares Outstanding230,829,800
10 Day Avg. Volume739,925
30 Day Avg. Volume804,756
Financial Highlights & Ratios
PEG Ratio-12.47
Price to Book (P/B)5.91
Price to Sales (P/S)1.67
P/FCF Ratio42.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$39.68Price Target Upside-3.71% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.37
Revenue Forecast (FY)AU$18.94B
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...
How the Company Makes Money
RHC generates revenue mainly by providing healthcare services through its hospitals and day surgery centres and being paid for those services by a mix of private health insurers, government/public health systems, and self-paying patients. Key reve...
Ramsay Health Care Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
Positive overall: the call emphasizes strong, broad-based underlying profit growth driven by Australia, improved cash flow, active capital-discipline measures, and material operational progress on the transformation agenda. These positives are tempered by clear and material regional challenges — notably UK NHS funding uncertainty, Elysium underperformance, French funding headwinds and elevated leverage in Ramsay Sante — which management is actively addressing through turnaround programs, refinancing and a proposed demerger. The balance of the narrative is constructive but cautious, with meaningful risks to monitor.Positive Updates
Group profit growth and shareholder return
Reported 7.3% growth in underlying EBIT and 8.1% growth in underlying NPAT for the half. Board declared a fully franked dividend of $0.425 per share, up 6.3%, representing a 60% payout ratio of underlying earnings.
Negative Updates
UK NHS funding headwinds and volume risk
UK acute business faced NHS budgetary restrictions late in the period; NHS admissions slowed and declined in Q2. Management expects NHS activity to remain negative in Q3 with funding uncertainty likely to prevail until the new NHS fiscal year, creating revenue/volume downside risk.
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Q2-2026 Updates
Positive
Negative
Group profit growth and shareholder return
Reported 7.3% growth in underlying EBIT and 8.1% growth in underlying NPAT for the half. Board declared a fully franked dividend of $0.425 per share, up 6.3%, representing a 60% payout ratio of underlying earnings.
Read all positive updates
Company Guidance
Management's guidance for FY26 reiterated continued Australia EBIT growth momentum and several quantified items: net financing costs forecast $590–610m, underlying effective tax rate ~35%, group CapEx reduced to $755–795m with Australian development CapEx now expected $170–190m and 23 new theatres/procedure rooms scheduled to open in FY26, and a full‑year dividend payout ratio of 60–70% of underlying NPAT (interim fully franked dividend $0.425/share, +6.3%, 60% payout for the half). They expect Australia to sustain momentum after H1 results (H1 underlying EBIT +7.3%, underlying NPAT +8.1%; Australia underlying EBIT +7.1%, revenue +8.2%, private portfolio revenue +8.7%, hospital admissions +3.1%, core surgical admissions +5.7%, theatre utilisation +1.3% y/y and a 40bp margin lift excluding Joondalup), while U.K. NHS activity is expected to remain negative in Q3 with potential additional funding from 1 April; Elysium’s turnaround is expected to gain traction after 163 beds closed in H1. They also confirmed corporate actions and balance‑sheet metrics: the proposed Ramsay Sante in‑specie distribution targeted for completion in Dec‑2026 (Sante H1 underlying EBIT +4.4% cc, leverage 5.3x, EUR391m liquidity), the National Capital Private Hospital acquisition to transition in Q1 FY27 and be EPS‑accretive in year one, consolidated net debt $5.1bn, Funding Group leverage excl. Sante 2.22x (<2.5x target), and operating cash flow improvement to $350m (up 16.9%).Ramsay Health Care Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.59B | 17.79B | 16.66B | 14.96B | 13.08B | 12.86B |
| Gross Profit | 1.96B | 2.12B | 1.61B | 1.27B | 9.97B | 1.59B |
| EBITDA | 1.66B | 1.59B | 1.81B | 1.78B | 1.61B | 1.80B |
| Net Income | 289.60M | 24.00M | 888.70M | 298.10M | 274.00M | 449.00M |
Balance Sheet | ||||||
| Total Assets | 21.70B | 22.48B | 20.89B | 21.03B | 19.47B | 19.32B |
| Cash, Cash Equivalents and Short-Term Investments | 469.00M | 785.60M | 662.30M | 656.10M | 314.20M | 1.00B |
| Total Debt | 17.53B | 12.16B | 10.94B | 11.89B | 10.70B | 10.55B |
| Total Liabilities | 15.97B | 16.77B | 15.37B | 16.21B | 14.95B | 14.77B |
| Stockholders Equity | 5.04B | 5.02B | 4.90B | 4.15B | 3.93B | 4.03B |
Cash Flow | ||||||
| Free Cash Flow | 719.10M | 704.20M | 539.00M | 558.70M | 7.00M | 852.30M |
| Operating Cash Flow | 1.54B | 1.48B | 1.29B | 1.28B | 715.50M | 1.48B |
| Investing Cash Flow | -811.20M | -765.30M | 159.70M | -713.80M | 30.00M | -2.50B |
| Financing Cash Flow | -621.40M | -631.20M | -1.45B | -242.40M | -1.41B | 584.00M |
Ramsay Health Care Technical Analysis
Negative
41.21
Price Trends
38.71
Negative
38.55
Negative
35.91
Positive
Market Momentum
-0.57
Positive
37.93
Neutral
26.77
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 41.21 is above the 20-day moving average (MA) of 37.20, above the 50-day MA of 38.71, and above the 200-day MA of 35.91, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 37.93 is Neutral, neither overbought nor oversold. The STOCH value of 26.77 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$9.25B | 17.29 | 6.39% | 4.69% | 13.14% | -2.73% | |
64 Neutral | AU$8.33B | 28.66 | 5.75% | 2.25% | 8.65% | 3233.99% | |
59 Neutral | AU$375.04M | 15.17 | 16.35% | 4.60% | 1.12% | -12.02% | |
56 Neutral | AU$1.90B | 49.47 | -162.99% | 2.30% | 14.95% | 151.90% | |
55 Neutral | AU$790.45M | 54.20 | 2.05% | 2.65% | 56.28% | 55.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | AU$232.37M | -1.38 | -29.48% | ― | -12.15% | -2285.99% |
* Healthcare Sector Average
AU:RHC
Ramsay Health Care
36.40
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-2.11%
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Ramsay Health Care Corporate Events
Ramsay Santé lifts profitability and trims net loss as European care strategy advances
May 8, 2026
Ramsay Santé reported unaudited revenue of €4.0bn for the nine months to 31 March 2026, up 3.1% year-on-year, driven by volume growth in France and robust fundamentals in the Nordics, including positive price indexation, currency tailwi...
Ramsay Health Care Sets October Distribution on RHCPA Hybrid Securities
Apr 20, 2026
Ramsay Health Care has declared a six‑month distribution on its RHCPA transferable preference securities, set at AUD 3.3608 per security. The distribution will trade ex‑distribution on 29 September 2026, with a record date of 30 Septem...
Ramsay Health Care Lapses 5,085 Performance Rights After Conditions Not Met
Apr 1, 2026
Ramsay Health Care Limited is a listed healthcare provider operating in the hospital and medical services industry. The company is traded on the ASX under the code RHC and manages issued capital that includes various equity-based incentive instrum...
Ramsay Director Steven Sargent Increases Indirect Shareholding
Mar 30, 2026
Ramsay Health Care has disclosed a change in the equity interests of non-executive director Steven Sargent, who holds shares indirectly via Taramiah Pty Ltd as trustee for the Sargent Family Trust. The filing indicates no change to his direct inte...
Ramsay Health Care relocates head office to North Shore Health Precinct
Mar 26, 2026
Ramsay Health Care has changed its registered office address, principal place of business and key contact numbers, relocating to Level 7, Tower B, 7 Westbourne Street in St Leonards on Sydney’s North Shore. The move, effective 30 March 2026,...
Ramsay Director Craig Drummond Acquires First Direct Stake in Health Care Group
Mar 25, 2026
Ramsay Health Care has disclosed a change in director Craig Drummond’s interests, with the non-executive director acquiring 15,000 ordinary shares in the company through an on-market trade on 25 March 2026 at an average price of $40.1859 per...
Ramsay Director Karen Penrose Increases Indirect Shareholding
Mar 25, 2026
Ramsay Health Care has disclosed a change in non-executive director Karen Penrose’s interests in the company’s shares, as required under ASX listing rules. Penrose holds both direct and indirect stakes, with the latter structured throu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.