Ramsay Generale de Sante (GDS) AI Stock Analysis

• Market Cap: €1.21B
• Dividend Yield: N/A
• Average Volume (3M): 31.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 4.70%
• EPS Growth: -0.37%
• Country: FR
• Employees: 34,218
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Care Facilities
• EPS (TTM): -0.32
• Shares Outstanding: 110,389,690
• 10 Day Avg. Volume: 445
• 30 Day Avg. Volume: 31,348
• PEG Ratio: 0.00
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 2.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €11.50 ▲(23.13% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is primarily held back by weak profitability and high leverage despite stable revenue and strong cash flow trends. Technicals are supportive with the price above major moving averages and positive MACD, but valuation is pressured by losses implied by the negative P/E.

Positive Factors

Strong free cash flow growth

A 25.2% free cash flow increase shows the business is consistently converting operations into cash. Durable cash generation supports debt service, maintenance capex and selective investments, improving financial flexibility and resilience across the next several quarters.

Stable revenue growth

Consistent revenue trends (~4.7% historical growth and described as 'stable') indicate predictable demand under France's reimbursement system. Predictability aids capacity planning and utilization, supporting steady operational performance over a 2–6 month horizon.

Scale and margin advantage

A nationwide hospital network and a reported strong gross profit margin suggest scale benefits in purchasing, clinical protocols and OR utilization. These structural advantages support sustained operational efficiency and protect core margins versus smaller competitors.

Negative Factors

High leverage on the balance sheet

Elevated debt-to-equity increases refinancing and interest rate vulnerability, constraining capital allocation and limiting runway for organic investment or acquisitions. High leverage raises financial risk and reduces strategic optionality over the medium term.

Negative profitability and ROE

Negative net margins and ROE indicate persistent bottom-line losses despite revenue stability. Continued losses erode equity, limit retained earnings for reinvestment, and increase the likelihood of restructuring, asset sales or capital raises if trends persist.

Cash flow-profitability disconnect

A disconnect where strong free cash flow coexists with negative reported profits points to financial costs, non‑operating items or accounting timing effects. That mismatch creates uncertainty about sustainable earnings quality and investor confidence.

Ramsay Generale de Sante Business Overview & Revenue Model

Company Description

Ramsay Générale de Santé SA operates hospitals in France. Its hospitals offer a range of services in the areas of anesthesia, oncology, cardiology, dermatology, gastroenterology, gynecology, maternity, nephrology, neurosurgery, obesity, ophthalmology, orthopedics, stomatology, pneumonology, psychiatry, radiology, and urology, as well as thoracic, vascular, and endovascular surgeries. The company was formerly known as Générale de Santé SA and changed its name to Ramsay Générale de Santé SA in December 2015. Ramsay Générale de Santé SA was founded in 1987 and is based in Paris, France. Ramsay Générale de Santé SA operates as a subsidiary of Ramsay Health Care Limited.

How the Company Makes Money

Ramsay Générale de Santé generates revenue primarily through patient care services, which include hospital admissions, surgical procedures, outpatient consultations, and specialized medical treatments. The company earns money from both private and public health insurance reimbursements, as well as direct payments from patients. Key revenue streams include elective surgeries, diagnostics, and long-term care services. Additionally, Ramsay GDS has established significant partnerships with various health insurance providers and governmental health agencies, allowing for a steady inflow of patients and financial support. The company's strategic focus on expanding its service offerings and enhancing operational efficiency further contributes to its earnings.

Ramsay Generale de Sante Financial Statement Overview

Summary

Stable revenue growth and strong cash generation (notably higher free cash flow), but profitability is weak with negative net margin/ROE and leverage is elevated, increasing financial risk.

Income Statement

Ramsay Generale de Sante shows a modest revenue growth rate of 1.91% in the most recent year, indicating stability in revenue generation. However, the company faces challenges with profitability, as evidenced by a negative net profit margin. The gross profit margin remains strong, suggesting efficient cost management, but the negative net income highlights issues in controlling other expenses or financial costs.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. The return on equity is negative, driven by the net losses, which is a concern for investors. However, the equity ratio is reasonable, suggesting a balanced asset structure.

Cash Flow

Ramsay Generale de Sante demonstrates strong cash flow management with a significant free cash flow growth rate of 25.21%. The operating cash flow to net income ratio is robust, indicating effective cash generation relative to accounting profits. However, the free cash flow to net income ratio suggests that cash flow is not fully translating into profitability.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.32B	5.24B	5.01B	4.70B	4.30B	4.02B
Gross Profit	1.03B	4.08B	3.94B	3.72B	3.41B	3.20B
EBITDA	615.10M	599.70M	584.90M	647.30M	677.10M	596.40M
Net Income	-45.90M	-54.10M	-53.90M	49.40M	118.40M	65.00M
Balance Sheet
Total Assets	6.58B	6.84B	6.90B	6.96B	6.79B	6.68B
Cash, Cash Equivalents and Short-Term Investments	218.10M	384.00M	381.30M	362.90M	143.50M	620.00M
Total Debt	5.86B	4.08B	4.06B	4.15B	3.97B	3.85B
Total Liabilities	5.41B	5.66B	5.67B	5.68B	5.55B	5.58B
Stockholders Equity	1.14B	1.15B	1.19B	1.25B	1.21B	1.07B
Cash Flow
Free Cash Flow	404.60M	550.90M	418.30M	426.70M	68.90M	475.90M
Operating Cash Flow	541.00M	693.70M	586.80M	598.90M	262.50M	652.30M
Investing Cash Flow	-138.20M	-138.40M	-180.50M	-175.40M	-471.10M	-181.40M
Financing Cash Flow	-358.50M	-550.20M	-401.50M	-197.10M	-264.20M	-390.60M

Ramsay Generale de Sante Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:GDS, the sentiment is Positive. The current price of 9.34 is below the 20-day moving average (MA) of 10.87, below the 50-day MA of 10.12, and below the 200-day MA of 10.00, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 87.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:GDS.

Ramsay Generale de Sante Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRP	75 Outperform	€2.93B	22.00	12.92%	0.41%	6.97%	-5.59%
VETO	72 Outperform	€957.92M	15.92	10.80%	1.06%	-0.95%	27.67%
LNA	61 Neutral	€268.84M	12.73	6.64%	2.73%	13.31%	-13.07%
GDS	60 Neutral	€1.21B	-26.21	-4.36%	―	4.70%	-0.37%
CLARI	58 Neutral	€1.38B	920.95	-1.70%	―	1.98%	85.87%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
EMEIS	48 Neutral	€2.33B	-7.94	-16.66%	―	6.30%	-100.37%