tiprankstipranks
Trending News
More News >
Ramsay Health Care Limited (AU:RHC)
:RHC

Ramsay Health Care (RHC) AI Stock Analysis

Compare
59 Followers

Top Page

AU

Ramsay Health Care

(OTC:RHC)

Rating:66Neutral
Price Target:
AU$41.00
▲(8.90%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 (RHC) vs. iShares MSCI Australia ETF (EWA)

Ramsay Health Care Business Overview & Revenue Model

Company DescriptionRamsay 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 MoneyRamsay 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
75
Positive
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
65
Positive
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
68
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
17.12B16.56B14.86B13.08B12.35B11.93B
Gross Profit
1.85B1.92B11.52B9.97B9.34B9.21B
EBIT
1.51B936.90M660.30M460.90M690.70M689.00M
EBITDA
2.06B1.81B2.03B1.84B2.03B1.77B
Net Income Common Stockholders
25.30M888.70M298.10M274.00M449.00M284.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
433.10M662.30M656.10M314.20M1.00B1.50B
Total Assets
16.41B20.89B21.03B19.47B19.32B18.06B
Total Debt
10.19B10.94B11.89B10.70B10.55B9.52B
Net Debt
9.75B10.28B11.23B10.38B9.55B8.01B
Total Liabilities
13.58B15.37B16.21B14.95B14.77B13.82B
Stockholders Equity
2.37B4.90B4.15B3.93B4.03B3.75B
Cash FlowFree Cash Flow
659.50M539.00M558.70M7.00M852.30M1.00B
Operating Cash Flow
1.39B1.29B1.28B715.50M1.48B1.68B
Investing Cash Flow
-734.40M159.70M-713.80M30.00M-2.50B-656.00M
Financing Cash Flow
-675.30M-1.45B-242.40M-1.41B584.00M-231.90M

Ramsay Health Care Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.65
Price Trends
50DMA
34.87
Positive
100DMA
34.35
Positive
200DMA
36.72
Positive
Market Momentum
MACD
0.88
Negative
RSI
61.09
Neutral
STOCH
79.85
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 37.65 is above the 20-day moving average (MA) of 36.61, above the 50-day MA of 34.87, and above the 200-day MA of 36.72, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 61.09 is Neutral, neither overbought nor oversold. The STOCH value of 79.85 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSHL
72
Outperform
AU$12.68B23.176.86%4.05%10.15%6.20%
AUACL
66
Neutral
AU$544.00M18.0018.39%4.51%7.80%99.87%
AURHC
66
Neutral
AU$8.65B1,057.580.52%2.23%7.25%-99.04%
AUREG
58
Neutral
AU$2.27B150.30-276.16%1.96%25.38%
54
Neutral
$5.31B3.28-45.10%2.80%16.76%0.02%
AUIDX
51
Neutral
AU$864.04M95.471.14%2.50%7.83%
AUHLS
45
Neutral
€602.69M-4.46%-7.82%98.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RHC
Ramsay Health Care
37.65
-9.99
-20.97%
AU:HLS
Healius Limited
0.83
-0.15
-14.96%
AU:REG
Regis Healthcare Ltd.
7.53
3.68
95.58%
AU:SHL
Sonic Healthcare Limited
26.39
2.49
10.42%
AU:IDX
Integral Diagnostics Ltd.
2.32
0.04
1.75%
AU:ACL
Australian Clinical Labs Ltd
2.77
0.55
24.77%

Ramsay Health Care Corporate Events

Ramsay Health Care Appoints Craig Drummond as Non-Executive Director
May 29, 2025

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
May 15, 2025

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
Apr 22, 2025

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
Apr 10, 2025

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
Apr 2, 2025

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
Apr 1, 2025

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
Apr 1, 2025

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
Mar 26, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.