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Ramsay Health Care
(Sydney:RHC)
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Rating:64Neutral
Price Target:
AU$39.00
▼(-7.80% 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 core business strength
Sustained Australia growth underpins durable cash generation and margin resilience. Higher admissions, rising case acuity and improving theatre utilisation indicate capacity leverage and repeatable demand from private and public payors, supporting recurring facility revenue and investment returns over the medium term.
Negative Factors
Elevated leverage
High group and Sante leverage constrain financial flexibility and amplify interest‑rate and refinancing risk. Even with hedges, material debt levels limit ability to absorb shocks, restrict opportunistic investment, and create dependency on steady cash generation and deleveraging actions to protect credit metrics over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Australia core business strength
Sustained Australia growth underpins durable cash generation and margin resilience. Higher admissions, rising case acuity and improving theatre utilisation indicate capacity leverage and repeatable demand from private and public payors, supporting recurring facility revenue and investment returns over the medium term.
Read all positive factors
Ramsay Health Care (RHC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$10.35B
Dividend Yield1.94%
Average Volume (3M)804.76K
Price to Earnings (P/E)38.2
Beta (1Y)1.09
Revenue Growth8.65%
EPS Growth3233.99%
CountryAU
Employees92,000
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-12.49
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$43.46Price Target Upside2.73% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)1.61
Revenue Forecast (FY)AU$19.30B
Ramsay Health Care Business Overview & Revenue Model
Company Description
Ramsay Health Care Limited is a prominent healthcare provider that manages and possesses hospitals. The company delivers medical services to both publicly funded and privately insured individuals. It maintains a substantial international presence,...
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.
Read all updates
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
Positive
42.30
Price Trends
41.84
Positive
40.34
Positive
38.07
Positive
Market Momentum
0.75
Negative
65.92
Neutral
79.74
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 42.3 is below the 20-day moving average (MA) of 43.61, above the 50-day MA of 41.84, and above the 200-day MA of 38.07, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 79.74 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$11.17B | 19.90 | 6.39% | 4.99% | 13.14% | -2.73% | |
64 Neutral | AU$10.35B | 38.20 | 5.75% | 2.06% | 8.65% | 3233.99% | |
59 Neutral | AU$449.51M | 15.53 | 16.35% | 5.42% | 1.12% | -12.02% | |
56 Neutral | AU$1.90B | 48.45 | -162.99% | 2.76% | 14.95% | 151.90% | |
55 Neutral | AU$827.73M | 60.11 | 2.05% | 3.51% | 56.28% | 55.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | AU$312.25M | -0.55 | -29.48% | ― | -12.15% | -2285.99% |
* Healthcare Sector Average
AU:RHC
Ramsay Health Care
44.90
6.91
18.20%
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Ramsay Health Care Corporate Events
Ramsay Santé Secures €1.75bn Refinancing Ahead of Free Float Expansion
Jul 22, 2026
Ramsay Santé has closed a €1.75 billion senior debt refinancing, comprising a €1.55 billion Term Loan B and a €200 million revolving credit facility, priced at E+350bps and anchored by new and existing lenders. The transacti...
Ramsay Health Care Reports Lapse of Performance Rights, Trimming Future Equity Dilution
Jul 6, 2026
Ramsay Health Care Limited has disclosed the cessation of several tranches of performance rights, identified under ASX code RHCAB, following the lapse of conditional rights that could not be satisfied. The affected rights, totaling tens of thousan...
United Super exits substantial holding in Ramsay Health Care
Jul 3, 2026
Ramsay Health Care has disclosed that United Super Pty Ltd has ceased to be a substantial shareholder in the company as of 29 June 2026. The change was detailed in a regulatory notice lodged under the Corporations Act, indicating that United Super...
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...
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.