Ramsay Health Care (RHC) AI Stock Analysis

• Market Cap: $8.54B
• Dividend Yield: 2.15%
• Average Volume (3M): 699.21K
• Price to Earnings (P/E): 1044.4
• Beta (1Y): 1.08
• Revenue Growth: 7.25%
• EPS Growth: -99.04%
• Country: AU
• Employees: 90,000
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Care Facilities
• EPS (TTM): 0.65
• Shares Outstanding: 230,829,800
• 10 Day Avg. Volume: 759,630
• 30 Day Avg. Volume: 699,213
• PEG Ratio: 0.76
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.60
• 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: $39.31
• Price Target Upside: 6.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: AU$41.00 ▲(10.81%Upside)

Ramsay Health Care's stock score is driven by strong financial performance and bullish technical analysis, though these are offset by concerns over high valuation. The company's revenue growth and improved profitability are positive, but the extremely high P/E ratio suggests overvaluation, which tempers the overall score.

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 with a focus on cost management needed.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
17.12B	16.56B	14.86B	13.08B	12.35B	11.93B
	Gross Profit
1.85B	12.85B	11.52B	9.97B	9.34B	9.21B
	EBIT
1.51B	936.90M	660.30M	460.90M	690.70M	689.00M
	EBITDA
2.06B	1.81B	1.78B	1.61B	1.80B	1.54B
	Net Income Common Stockholders
25.30M	888.70M	298.10M	274.00M	449.00M	284.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
342.70M	662.30M	656.10M	314.20M	1.00B	1.50B
	Total Assets
20.66B	20.89B	21.03B	19.47B	19.32B	18.06B
	Total Debt
11.28B	10.94B	11.89B	10.70B	10.55B	9.52B
	Net Debt
10.94B	10.28B	11.23B	10.38B	9.55B	8.01B
	Total Liabilities
15.22B	15.37B	16.21B	14.95B	14.77B	13.82B
	Stockholders Equity
4.81B	4.90B	4.15B	3.93B	4.03B	3.75B
Cash Flow		Free Cash Flow
659.50M	539.00M	558.70M	7.00M	852.30M	1.00B
	Operating Cash Flow
1.39B	1.29B	1.28B	715.50M	1.48B	1.68B
	Investing Cash Flow
-734.40M	159.70M	-713.80M	30.00M	-2.50B	-656.00M
	Financing Cash Flow
-675.30M	-1.45B	-242.40M	-1.41B	584.00M	-231.90M

Ramsay Health Care Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 37 is above the 20-day moving average (MA) of 36.72, above the 50-day MA of 35.04, and above the 200-day MA of 36.59, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 32.96 is Neutral, 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
RHC	66 Neutral	$8.54B	1,044.38	0.52%	2.15%	7.25%	-99.04%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
PGZ		€342.35M	―	-4.46%	―	―	―
SHL	71 Outperform	AU$12.80B	23.40	6.86%	3.30%	10.15%	6.20%
ACL	66 Neutral	AU$540.08M	17.87	18.39%	2.54%	7.80%	99.87%
REG	58 Neutral	AU$2.24B	148.10	-276.16%	2.18%	25.38%	―
IDX	51 Neutral	AU$852.86M	94.24	1.14%	2.18%	7.83%	―

Ramsay Health Care Corporate Events

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.

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.