Ramsay Health Care (RHC) AI Stock Analysis

• Market Cap: $8.17B
• Dividend Yield: 2.25%
• Average Volume (3M): 717.77K
• Price to Earnings (P/E): 1201.0
• Beta (1Y): 1.25
• Revenue Growth: 6.82%
• EPS Growth: -99.27%
• Country: AU
• Employees: 90,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.56
• Shares Outstanding: 230,829,800
• 10 Day Avg. Volume: 667,260
• 30 Day Avg. Volume: 717,770
• 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: 2.54
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 9.79
• Enterprise Value/Ebitda: 13.00
• 1Y Price Target: $36.93
• Price Target Upside: 4.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.36
• Revenue Forecast (FY): $19.01B

• Rating: 54 Neutral
• Price Target: AU$37.00 ▲(4.61% Upside)

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

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and expansion.

Cash Flow Improvements

Improved cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Global Presence

A diversified geographic presence reduces dependency on any single market, providing resilience against regional economic fluctuations.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to interest rate changes.

Profitability Challenges

Declining profitability indicates operational inefficiencies and margin pressures, which can impact long-term financial health and shareholder returns.

Return on Equity Decline

A sharp decline in return on equity suggests reduced efficiency in generating returns for shareholders, potentially affecting investor confidence.

Ramsay Health Care Business Overview & Revenue Model

Company Description

Ramsay Health Care (RHC) is a global healthcare company headquartered in Australia, primarily engaged in the operation of private hospitals and day surgery facilities. The company operates across various sectors of healthcare, including acute care, rehabilitation, mental health, and allied health services. Ramsay Health Care is known for providing high-quality patient care and a range of specialized services, including surgical procedures, maternity care, and outpatient services, catering to diverse patient needs.

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	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: Positive
• Last Price: 35.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 35.37 is above the 20-day moving average (MA) of 34.94, above the 50-day MA of 32.87, and above the 200-day MA of 34.69, indicating a bullish trend. The MACD of 0.97 indicates Positive momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 8.22 is Positive, 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
ACL	71 Outperform	AU$524.72M	15.63	18.59%	4.43%	6.73%	37.16%
SHL	64 Neutral	AU$10.27B	19.43	6.32%	4.61%	9.44%	-0.37%
REG	56 Neutral	AU$2.26B	45.97	―	2.18%	14.61%	―
IDX	55 Neutral	AU$977.07M	172.37	0.94%	2.65%	33.54%	―
RHC	54 Neutral	$8.17B	1,201.01	0.38%	2.25%	6.82%	-99.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	50 Neutral	€635.37M	-1.21	-67.21%	―	-23.02%	33.11%

Ramsay Health Care Corporate Events

Ramsay Health Care Announces Director’s Interest Change

Ramsay Health Care has announced a change in the director’s interest, specifically concerning Natalie Davis. On November 26, 2025, Davis acquired 21,071 Restricted Ordinary Shares as part of her FY25 short-term incentive award, increasing her indirect interest in the company. This acquisition reflects the company’s ongoing commitment to aligning executive incentives with shareholder interests, potentially impacting stakeholder confidence and market perception positively.

Ramsay Health Care AGM 2025: Resolutions Passed with Strong Support

At the 2025 Annual General Meeting, Ramsay Health Care announced the successful passing of all resolutions, including the re-election of key directors and the approval of performance rights for the Managing Director. These decisions reflect strong shareholder support and are likely to reinforce the company’s leadership and strategic direction, potentially impacting its market position and stakeholder confidence positively.

Ramsay Health Care Navigates Industry Challenges with Strategic Focus

Ramsay Health Care’s 2025 AGM highlighted the company’s strategic focus on navigating industry challenges, with a renewed emphasis on its core Australian business. Despite facing cost pressures and industry headwinds, the company is optimistic about its refreshed strategy and leadership under new CEO Natalie Davis. Ramsay reported a 1.7% increase in underlying net profit after tax, driven by strong performance in its Australian and UK hospital businesses, although earnings from its UK mental health care business, Elysium, and Ramsay Santé were lower.

Ramsay Health Care Appoints New Group CFO to Drive Transformation

Ramsay Health Care has appointed Anthony Neilson as the new Group Chief Financial Officer, effective November 24, 2025. Neilson brings over 30 years of experience in finance and commercial roles, having previously worked at Santos Ltd and Roc Oil Ltd. His expertise in mergers, acquisitions, and capital management is expected to strengthen Ramsay’s leadership team and accelerate its transformation efforts, ultimately improving performance and returns on capital.

Ramsay Santé Reports Resilient Growth Amid Funding Challenges

Ramsay Santé, a subsidiary of Ramsay Health Care, reported a 2.6% increase in revenue and a 6.5% rise in EBITDA for the quarter ending September 2025, despite challenges such as reduced public funding and cost inflation. The company’s strong performance, particularly in Sweden, was driven by activity growth, cost control measures, and strategic expansions, including new care models and facilities in France and Norway, which align with patient needs and enhance healthcare service quality.

Ramsay Health Care Announces New Dividend Distribution

Ramsay Health Care Limited has announced a new dividend distribution for its security holders, with a distribution amount of AUD 2.9642 per unit. The payment is scheduled for April 20, 2026, and pertains to a six-month period ending on April 19, 2026. This announcement reflects the company’s ongoing commitment to providing returns to its investors and may influence its market positioning by demonstrating financial stability and shareholder value.

Ramsay Health Care Corrects Shareholder Information in 2025 Annual Report

Ramsay Health Care has issued a correction to its 2025 Annual Report concerning inaccuracies in the tables listing the top 20 ordinary shareholders and CARES holders. The correction involves the names and order of these shareholders, which were previously incorrect. This update ensures transparency and accuracy in shareholder information, which is crucial for maintaining investor trust and compliance with reporting standards.

Ramsay Health Care Reports Cessation of Performance Rights

Ramsay Health Care Limited announced the cessation of several performance rights, totaling 199,893 securities, due to unmet conditions. This development could impact the company’s financial strategies and stakeholder expectations, as performance rights are often linked to employee incentives and company performance metrics.

Ramsay Health Care Announces 2025 Annual General Meeting

Ramsay Health Care has announced its 2025 Annual General Meeting (AGM) scheduled for November 25, 2025, in Sydney, Australia. Shareholders are encouraged to participate either in person or via a live webcast, with options to appoint proxies and submit questions. This meeting is a significant event for stakeholders, providing insights into the company’s strategic direction and operational focus.

Ramsay Health Care Announces Board Changes with Director Retirement

Ramsay Health Care announced the retirement of James McMurdo as a Non-executive Director after the 2025 Annual General Meeting. McMurdo, who joined the board in 2019 and served on the Audit Committee, contributed significantly to the company’s strategic and financial growth. Ramsay’s Chair, David Thodey, emphasized the importance of ongoing board renewal to maintain a balanced mix of skills and perspectives, ensuring effective governance in a dynamic environment.

Ramsay Health Care’s 2025 Annual Report Highlights Sustainability and Strategic Focus

Ramsay Health Care has released its 2025 Annual Report, emphasizing its commitment to sustainable development and aligning its operations with the United Nations Sustainable Development Goals. The report outlines key value drivers, business strategies, and risks, providing stakeholders with insights into the company’s performance and future outlook. The Annual General Meeting is scheduled for November, and the company continues to provide financial updates and dividend payment schedules, reflecting its ongoing transparency and engagement with investors.

Ramsay Health Care Aligns FY25 Earnings with Market Expectations Amid Impairment Challenges

Ramsay Health Care announced its financial results for the year ending June 30, 2025, highlighting that its Underlying Net Profit After Tax (NPAT) and Underlying Earnings Before Interest and Tax (EBIT) were in line with market expectations based on sell-side analyst forecasts. The company reported a Statutory NPAT of $24.0 million, which was significantly impacted by a non-cash impairment of $291 million related to its UK operations. This impairment led analysts to focus on Underlying NPAT and EBIT as more relevant indicators of the company’s performance, with Ramsay’s earnings closely aligning with consensus estimates.