Ramsay Health Care (RHC) AI Stock Analysis

• Market Cap: AU$8.91B
• Dividend Yield: 2.07%
• Average Volume (3M): 571.57K
• Price to Earnings (P/E): 1089.0
• Beta (1Y): 1.14
• Revenue Growth: 7.25%
• EPS Growth: -99.04%
• Country: AU
• Employees: 90,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.65
• Shares Outstanding: 230,829,800
• 10 Day Avg. Volume: 491,087
• 30 Day Avg. Volume: 571,567
• PEG Ratio: 0.76
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.60
• 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$40.59
• Price Target Upside: 5.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: AU$39.00 ▲(1.01%Upside)

The overall stock score is moderate, driven primarily by strong financial performance and stable technical indicators. However, the high P/E ratio raises concerns about overvaluation. The absence of recent earnings call insights and corporate events limits the analysis to the available financial and technical data.

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 across its network of hospitals and clinics. The company's key revenue streams include patient fees, government healthcare funding, and private health insurance reimbursements. Ramsay Health Care partners with various public health systems, insurers, and other healthcare providers to enhance service delivery and ensure financial stability. Additionally, the company benefits from strategic acquisitions and partnerships that expand its service offerings and geographic footprint, contributing to its overall earnings. Ramsay's revenue is also bolstered by its focus on efficiency and cost management, allowing it to maintain profitability while delivering high-quality patient care.

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

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

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

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	17.12B	16.56B	14.86B	13.08B	12.35B	11.93B
Gross Profit	1.85B	12.85B	11.52B	9.97B	9.34B	9.21B
EBITDA	2.06B	1.81B	1.78B	1.61B	1.80B	1.54B
Net Income	25.30M	888.70M	298.10M	274.00M	449.00M	284.00M
Balance Sheet
Total Assets	20.66B	20.89B	21.03B	19.47B	19.32B	18.06B
Cash, Cash Equivalents and Short-Term Investments	342.70M	662.30M	656.10M	314.20M	1.00B	1.50B
Total Debt	11.28B	10.94B	11.89B	10.70B	10.55B	9.52B
Total Liabilities	15.22B	15.37B	16.21B	14.95B	14.77B	13.82B
Stockholders Equity	4.81B	4.90B	4.15B	3.93B	4.03B	3.75B
Cash Flow
Free Cash Flow	659.50M	539.00M	558.70M	7.00M	852.30M	1.00B
Operating Cash Flow	1.39B	1.29B	1.28B	715.50M	1.48B	1.68B
Investing Cash Flow	-734.40M	159.70M	-713.80M	30.00M	-2.50B	-656.00M
Financing Cash Flow	-675.30M	-1.45B	-242.40M	-1.41B	584.00M	-231.90M

Ramsay Health Care Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 38.61 is above the 20-day moving average (MA) of 38.47, above the 50-day MA of 37.33, and above the 200-day MA of 36.13, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 74.40 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	73 Outperform	AU$14.00B	24.55	6.86%	3.78%	10.15%	6.20%
ACL	68 Neutral	AU$563.64M	18.65	18.39%	4.42%	7.80%	99.87%
RHC	61 Neutral	AU$8.91B	1,089.04	0.52%	2.07%	7.25%	-99.04%
REG	58 Neutral	AU$2.32B	149.70	-276.16%	1.91%	25.38%	―
IDX	53 Neutral	AU$1.01B	110.29	1.14%	2.13%	7.83%	―
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
HLS	46 Neutral	€591.80M	―	-4.46%	―	-7.82%	98.08%

Ramsay Health Care Corporate Events

Ramsay Health Care Announces Cessation of Securities Due to Unmet Conditions

Ramsay Health Care Limited announced the cessation of certain securities, specifically performance rights, due to unmet conditions. This cessation reflects a lapse in conditional rights, impacting the company’s issued capital and potentially affecting stakeholder perceptions regarding the company’s operational targets and financial strategies.

The most recent analyst rating on (AU:RHC) stock is a Hold with a A$38.00 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 Appoints Craig Drummond as Non-Executive Director

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

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.