Ramsay Health Care (RHC) AI Stock Analysis

• Market Cap: AU$9.89B
• Dividend Yield: 2.25%
• Average Volume (3M): 804.76K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.32
• Revenue Growth: 6.82%
• EPS Growth: -99.27%
• Country: AU
• Employees: 90,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.71
• Shares Outstanding: 230,829,800
• 10 Day Avg. Volume: 739,925
• 30 Day Avg. Volume: 804,756
• PEG Ratio: -12.47
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 1.67
• P/FCF Ratio: 42.18
• 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: AU$40.37
• Price Target Upside: -6.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.34
• Revenue Forecast (FY): AU$18.95B

• Rating: 54 Neutral
• Price Target: AU$44.00 ▲(2.16% Upside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

Ramsay Health Care's overall stock score is primarily influenced by its financial performance and technical analysis. While the company shows stable revenue growth, high leverage and declining profitability are concerns. The technical indicators suggest short-term bullish momentum, but overbought signals indicate caution. The high P/E ratio suggests overvaluation, impacting the overall score negatively.

Positive Factors

Diversified hospital network and services

Ramsay's broad portfolio of hospitals, day surgery centres and ancillary clinical services creates durable scale advantages: it spreads fixed costs, supports higher facility utilisation, and enables negotiated payer contracts across specialties, sustaining revenue resilience over months.

Consistent revenue growth

Steady top-line expansion indicates ongoing demand for Ramsay's acute and elective services and supports long-term capacity utilisation. Persistent revenue growth underpins investment in facilities and clinical capabilities and provides a base for margin recovery and cash generation over the medium term.

Improving cash generation

An improving free cash flow growth rate and strong operating cash conversion signal better ability to fund capex, service debt and support operations without relying solely on external financing, enhancing financial flexibility and resilience across the next several quarters.

Negative Factors

High leverage

A debt-to-equity ratio above 2x represents material financial leverage that raises interest expense sensitivity and reduces strategic flexibility. Elevated leverage constrains the firm's ability to invest or absorb reimbursement shocks and increases refinancing risk over the coming months.

Net profit margin compression

A collapse in net margin to near zero indicates acute pressure on bottom-line profitability from costs, pricing or mix shifts. Sustained low margins erode capacity to reinvest, pay down debt, or return capital, making medium-term recovery and earnings stability more challenging.

Sharp decline in return on equity

A plunge in ROE signals a loss of capital efficiency and poor shareholder returns relative to prior year performance. This structural deterioration suggests operational or financial strain that will pressure investor confidence and limit ability to fund growth from internal returns.

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 in its hospitals and surgical facilities. Its key revenue streams include patient admissions, surgical procedures, and outpatient treatments, which are often reimbursed by government health programs, private health insurers, and out-of-pocket payments from patients. The company has significant partnerships with various health insurance providers, which help ensure a steady flow of patients and revenue. Additionally, Ramsay Health Care may also earn income from ancillary services, such as pharmacy, radiology, and laboratory services, further enhancing its financial performance. Factors contributing to its earnings include the increasing demand for healthcare services, growth in private health insurance coverage, and the expansion of its facilities and service offerings in both existing and new markets.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 43.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 43.07 is above the 20-day moving average (MA) of 37.60, above the 50-day MA of 36.42, and above the 200-day MA of 35.38, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 79.71 is Negative, neither overbought nor oversold. The STOCH value of 79.45 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
SHL	70 Outperform	AU$11.78B	21.51	6.32%	4.69%	9.44%	-0.37%
ACL	59 Neutral	AU$432.39M	16.69	18.59%	4.60%	6.73%	37.16%
REG	56 Neutral	AU$2.10B	55.07	―	2.30%	14.61%	―
IDX	55 Neutral	AU$909.42M	64.72	0.94%	2.65%	33.54%	―
RHC	54 Neutral	AU$9.89B	36.29	0.38%	2.25%	6.82%	-99.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	46 Neutral	€497.40M	-0.91	-67.21%	―	-23.02%	33.11%

Ramsay Health Care Corporate Events

Ramsay Health Care Confirms April 2026 Dividend on RHCPA Securities

Ramsay Health Care has confirmed that its board has now resolved to pay the dividend on its RHCPA transferable preference securities, in line with the CARES terms of issue set out in the 2005 prospectus. This satisfies the condition attached to an earlier announcement in October 2025 and locks in the payment timetable for holders.

The six‑month distribution period ends on 19 April 2026, with the ex‑date set for 2 April and the record date on 7 April. The dividend on the perpetual subordinated redeemable preference shares will be paid on 20 April 2026, providing clarity and income visibility for investors in this hybrid security.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$35.22 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 Declares Interim Dividend of AUD 0.425 per Share

Ramsay Health Care Limited, a major private hospital and health care operator, has announced an interim dividend on its ordinary fully paid shares for the half-year period ended 31 December 2025. The distribution underscores the company’s ongoing capital return to shareholders and reflects continued confidence in its cash generation from hospital operations.

The board has declared a dividend of AUD 0.425 per ordinary share, with an ex-dividend date of 9 March 2026, a record date of 10 March 2026 and payment scheduled for 26 March 2026. This payout timetable provides clarity for investors on expected income and may support the stock’s appeal to yield-focused shareholders in the health care sector.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$35.22 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 Sets Out Key Financial and AGM Dates for 2026

Ramsay Health Care has released its proposed calendar of key financial and corporate dates for 2026, including the timing of interim and full-year results, dividend record and payment dates for ordinary shares and CARES, and the date of its Annual General Meeting. The schedule provides investors and stakeholders with visibility on the company’s reporting and capital return timetable for 2026, though all dividend decisions and dates remain subject to Board approval and possible change via future market announcements.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$35.22 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 Issues Unaudited 1H FY26 Results Overview With Risk Caveats

Ramsay Health Care has released its results presentation for the first half of fiscal year 2026, covering the six months ended 31 December 2025, led by Group CFO Anthony Neilson and Managing Director and Group CEO Natalie Davis. The presentation provides a high-level overview of the group’s business, operations, financial position and strategies as at 26 February 2026, and is intended to be read alongside its formal results disclosures rather than as standalone investment advice.

The company emphasises that the document is unaudited, summary in nature and subject to various economic, regulatory, technological, climate and geopolitical risks that could cause actual outcomes to differ from expectations. Ramsay also underscores that it makes no warranty as to the accuracy or completeness of any forward-looking statements, will not routinely update them, and advises stakeholders to avoid placing undue reliance on this material and to consult broader public disclosures on its investor website.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$35.22 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 Releases HY26 Half-Year Financial Report

Ramsay Health Care has released its Appendix 4D half-year financial report for the six months ended 31 December 2025, marking the disclosure of its HY26 results to the market. The company will present these results via a webcast briefing hosted by its Group CEO and Group Executive Finance, with a recording and transcript to be made available on its investor website later in the day.

The half-year release and associated briefing underline Ramsay’s continued commitment to timely financial reporting and investor communication. By providing live and recorded access to its HY26 results presentation, the company is giving analysts and shareholders structured insight into its latest operating performance and financial position.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$35.22 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 to Spin Off European Unit Ramsay Santé to Shareholders

Ramsay Health Care plans to separate its 52.79% stake in French-listed Ramsay Santé by distributing those shares in-specie to existing Ramsay shareholders, who would receive proportional interests via CHESS Depositary Interests tradeable on the ASX, subject to board, shareholder and regulatory approvals. The move reflects diverging geographic strategies and capital profiles, and aims to simplify Ramsay’s structure, sharpen its focus on transforming and growing its core Australian hospitals business, give investors direct exposure to Ramsay Santé, and deconsolidate the European unit from Ramsay’s accounts, with completion targeted for late 2026 and the existing shareholders’ agreement with Crédit Agricole Assurances’ Prédica to terminate in October 2026.

Ramsay argues that Ramsay Santé already operates largely independently, reducing separation complexity and supporting a cleaner demerger that lets the European business pursue its own transformation agenda while maintaining investor access. The board has left the door open to superior alternative transactions arising from interested third parties, signalling ongoing strategic flexibility for stakeholders as the timetable progresses toward a proposed shareholder vote in November 2026 and implementation in December 2026.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$39.00 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 Issues New Unquoted Performance Rights Under Employee Incentive Plan

Ramsay Health Care Limited has notified the market of the issue of 291,857 unquoted performance rights under its employee incentive scheme, with an issue date of 15 December 2025. The additional performance rights, which will not be quoted on the ASX, form part of Ramsay’s ongoing equity-based remuneration framework aimed at incentivising and retaining key staff, and may modestly increase potential future equity dilution for existing shareholders while aligning employee interests with long-term company performance.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$34.80 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 Reports Lapse of 12,889 Performance Rights

Ramsay Health Care has notified the ASX of the cessation of 12,889 performance rights (security code RHCAB) that lapsed on 31 December 2025 because the conditions attached to those rights were not met or became incapable of being satisfied. The lapse modestly reduces the company’s pool of potential equity-linked securities, indicating an adjustment to its outstanding long-term incentive instruments without affecting existing ordinary shareholders’ current holdings.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$34.80 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 to Buy Canberra’s National Capital Private Hospital for $251m

Ramsay Health Care has agreed to acquire the assets and operations of National Capital Private Hospital in Garran, Canberra, from Healthscope Group entities for a net price of $251 million, funded through its existing debt facilities. The strategically located hospital, co-located with Canberra Hospital and adjacent to the Australian National University Medical School, has 8 theatres, a cath lab, 148 beds, an ICU and coronary care unit, and operates on a long-term lease with Canberra Health Services extending to 2064. Ramsay expects National Capital to rank among its top 20 hospitals by revenue and profitability and to be earnings-per-share accretive within the first 12 months, while keeping group leverage within its target of less than 2.5 times, underscoring the deal’s significance for Ramsay’s growth in key therapeutic areas and strengthening its presence in an attractive catchment area, subject to competition approval and completion expected in 2026.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$34.80 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 Director Increases Stake with New Performance Rights

Ramsay Health Care Limited has announced a change in the interest of its director, Natalie Davis, with an increase in her direct interest in the company’s securities. The change involves the acquisition of 74,075 Performance Rights under the company’s Equity Incentive Plan, bringing her total to 131,547 Performance Rights. This move reflects the company’s ongoing commitment to aligning its leadership’s interests with its long-term strategic goals, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$34.80 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 Issues New Performance Rights Under Employee Incentive Scheme

Ramsay Health Care Limited has announced the issuance of 39,918 performance rights as part of an employee incentive scheme. These securities are unquoted and are not intended to be listed on the ASX, reflecting the company’s strategy to incentivize and retain its workforce, which could enhance operational performance and stakeholder value.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$34.80 price target. To see the full list of analyst forecasts on Ramsay Health Care stock, see the AU:RHC Stock Forecast page.