Ramsay Health Care
Market Cap
AU$14.3b
Last Updated
2021/05/09 08:41 UTC
Data Sources
Company Financials +
Executive Summary
Ramsay Health Care Limited provides health care services to public and private patients. More Details
Rewards
Risk Analysis
Snowflake Analysis
Second-rate dividend payer with limited growth.
Similar Companies
Share Price & News
How has Ramsay Health Care's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RHC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RHC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-6.5%
RHC
-3.9%
AU Healthcare
0.5%
AU Market
1 Year Return
3.4%
RHC
23.9%
AU Healthcare
36.5%
AU Market
Return vs Industry: RHC underperformed the Australian Healthcare industry which returned 24% over the past year.
Return vs Market: RHC underperformed the Australian Market which returned 36.7% over the past year.
Shareholder returns
| RHC | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.5% | -3.9% | 0.5% |
| 30 Day | -6.9% | -4.1% | 1.0% |
| 90 Day | -5.5% | -1.0% | 2.8% |
| 1 Year | 4.2%3.4% | 26.0%23.9% | 40.6%36.5% |
| 3 Year | 3.5%-2.2% | 22.3%12.8% | 31.3%15.6% |
| 5 Year | -1.8%-10.6% | 23.9%7.6% | 63.4%32.9% |
Long-Term Price Volatility Vs. Market
How volatile is Ramsay Health Care's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 hours ago | Simply Wall St
There Are Reasons To Feel Uneasy About Ramsay Health Care's (ASX:RHC) Returns On Capital3 weeks ago | Simply Wall St
Ramsay Health Care Limited's (ASX:RHC) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?1 month ago | Simply Wall St
The Ramsay Health Care (ASX:RHC) Share Price Has Gained 15% And Shareholders Are Hoping For MoreValuation
Is Ramsay Health Care undervalued compared to its fair value and its price relative to the market?
57.24x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RHC (A$62.96) is trading above our estimate of fair value (A$58.95)
Significantly Below Fair Value: RHC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RHC is poor value based on its PE Ratio (57.2x) compared to the AU Healthcare industry average (20.8x).
PE vs Market: RHC is poor value based on its PE Ratio (57.2x) compared to the Australian market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: RHC is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: RHC is overvalued based on its PB Ratio (3.9x) compared to the AU Healthcare industry average (1.7x).
Future Growth
How is Ramsay Health Care forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
15.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RHC's forecast earnings growth (15.7% per year) is above the savings rate (1.9%).
Earnings vs Market: RHC's earnings (15.7% per year) are forecast to grow faster than the Australian market (13.6% per year).
High Growth Earnings: RHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: RHC's revenue (3.6% per year) is forecast to grow slower than the Australian market (5.1% per year).
High Growth Revenue: RHC's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RHC's Return on Equity is forecast to be low in 3 years time (14.4%).
Past Performance
How has Ramsay Health Care performed over the past 5 years?
-5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RHC has a large one-off gain of A$236.0M impacting its December 31 2020 financial results.
Growing Profit Margin: RHC's current net profit margins (2%) are lower than last year (4.1%).
Past Earnings Growth Analysis
Earnings Trend: RHC's earnings have declined by 5.2% per year over the past 5 years.
Accelerating Growth: RHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RHC had negative earnings growth (-53.5%) over the past year, making it difficult to compare to the Healthcare industry average (25.5%).
Return on Equity
High ROE: RHC's Return on Equity (7%) is considered low.
Financial Health
How is Ramsay Health Care's financial position?
Financial Position Analysis
Short Term Liabilities: RHC's short term assets (A$3.6B) do not cover its short term liabilities (A$3.8B).
Long Term Liabilities: RHC's short term assets (A$3.6B) do not cover its long term liabilities (A$9.2B).
Debt to Equity History and Analysis
Debt Level: RHC's debt to equity ratio (80%) is considered high.
Reducing Debt: RHC's debt to equity ratio has reduced from 165% to 80% over the past 5 years.
Debt Coverage: RHC's debt is well covered by operating cash flow (58.3%).
Interest Coverage: RHC's interest payments on its debt are not well covered by EBIT (1x coverage).
Balance Sheet
Dividend
What is Ramsay Health Care current dividend yield, its reliability and sustainability?
1.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RHC's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.07%).
High Dividend: RHC's dividend (1.54%) is low compared to the top 25% of dividend payers in the Australian market (5.2%).
Stability and Growth of Payments
Stable Dividend: RHC's dividend payments have been volatile in the past 10 years.
Growing Dividend: RHC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.1%), RHC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RHC's dividends in 3 years are forecast to be covered by earnings (52.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Craig McNally (59 yo)
3.83yrs
Tenure
AU$1,917,045
Compensation
Mr. Craig Ralph McNally has been Chief Executive Officer and Managing Director of Ramsay Health Care Limited since July 3, 2017 and serves as its Executive Director. Mr. McNally served as Group Chief Opera...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD1.50M) is below average for companies of similar size in the Australian market ($USD3.50M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RHC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
Experienced Board: RHC's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Ramsay Health Care Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Ramsay Health Care Limited
- Ticker: RHC
- Exchange: ASX
- Founded: 1964
- Industry: Health Care Facilities
- Sector: Healthcare
- Market Cap: AU$14.336b
- Shares outstanding: 227.70m
- Website: https://www.ramsayhealth.com
Number of Employees
Location
- Ramsay Health Care Limited
- 126 Phillip Street
- Suite 18.03
- Sydney
- New South Wales
- 2000
- Australia
Listings
Biography
Ramsay Health Care Limited provides health care services to public and private patients. The company’s health care services comprise day surgery procedures and other surgeries, as well as psychiatric care ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/09 08:41 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.