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$43.00
▲(8.45% Upside)
Action:ReiteratedDate: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
Market-leading Australia operations
Ramsay's scale and momentum in Australia drive durable revenue and margin tailwinds: rising admissions, stronger theatre utilisation and case acuity support sustainable procedure volumes, higher utilisation of fixed assets, and recurring insurer/government payer relationships that underpin predictable cash generation.
Negative Factors
High group leverage and weak ROE
Elevated leverage and a collapse in ROE indicate constrained capital returns and limited balance sheet flexibility. High net debt relative to equity increases sensitivity to interest rates and refinancing cycles, reducing resilience to earnings shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Market-leading Australia operations
Ramsay's scale and momentum in Australia drive durable revenue and margin tailwinds: rising admissions, stronger theatre utilisation and case acuity support sustainable procedure volumes, higher utilisation of fixed assets, and recurring insurer/government payer relationships that underpin predictable cash generation.
Read all positive factors
Ramsay Health Care (RHC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.08B
Dividend Yield2.25%
Average Volume (3M)804.76K
Price to Earnings (P/E)12.3
Beta (1Y)1.11
Revenue Growth6.82%
EPS Growth-99.27%
CountryAU
Employees90,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.71
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$41.77Price Target Upside5.35% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)1.36
Revenue Forecast (FY)AU$18.96B
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
Ramsay Health Care primarily makes money by delivering hospital-based care and charging for episodes of care provided in its facilities. The core revenue stream is patient service revenue generated from admissions and procedures performed in its h...
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
Neutral
39.65
Price Trends
39.32
Positive
37.11
Positive
35.78
Positive
Market Momentum
-0.06
Positive
46.83
Neutral
58.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHC, the sentiment is Neutral. The current price of 39.65 is below the 20-day moving average (MA) of 40.09, above the 50-day MA of 39.32, and above the 200-day MA of 35.78, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 58.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$9.75B | 10.64 | 6.39% | 4.69% | 9.44% | -0.37% | |
64 Neutral | AU$9.08B | 12.30 | 5.75% | 2.25% | 6.82% | -99.27% | |
59 Neutral | AU$380.08M | 23.92 | 16.35% | 4.60% | 6.73% | 37.16% | |
56 Neutral | AU$1.84B | 39.00 | -162.99% | 2.30% | 14.61% | ― | |
55 Neutral | AU$838.92M | 26.42 | 2.05% | 2.65% | 33.54% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | AU$370.33M | -5.40 | -67.21% | ― | -23.02% | 33.11% |
* Healthcare Sector Average
AU:RHC
Ramsay Health Care
39.65
7.65
23.92%
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Ramsay Health Care Corporate Events
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...
Ramsay Health Care Confirms April 2026 Dividend on RHCPA Securities
Feb 25, 2026
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...
Ramsay Health Care Declares Interim Dividend of AUD 0.425 per Share
Feb 25, 2026
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 on...
Ramsay Health Care Sets Out Key Financial and AGM Dates for 2026
Feb 25, 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...
Ramsay Health Care Issues Unaudited 1H FY26 Results Overview With Risk Caveats
Feb 25, 2026
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 p...
Ramsay Health Care Releases HY26 Half-Year Financial Report
Feb 25, 2026
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...
Ramsay Health Care to Spin Off European Unit Ramsay Santé to Shareholders
Feb 19, 2026
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 t...
Ramsay Health Care Issues New Unquoted Performance Rights Under Employee Incentive Plan
Jan 12, 2026
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 ...
Ramsay Health Care Reports Lapse of 12,889 Performance Rights
Jan 12, 2026
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 la...
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.