Ramsay Health Care
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Ramsay Health Care Limited provides health care services to public and private patients. The last earnings update was 165 days ago. More info.
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RHC Share Price and Events
7 Day Returns
1 Year Returns
RHC Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Ramsay Health Care (RHC) | 2.3% | 3.2% | 7.6% | -12% | -8.2% | 24.1% |
| AU Healthcare | 1.6% | 4.1% | 7.1% | -7.1% | -2.9% | 18.5% |
| AU Market | 1.5% | 6.5% | 8.4% | 2.2% | 30% | 6.3% |
1 Year Return vs Industry and Market
- RHC underperformed the Healthcare industry which returned -7.1% over the past year.
- RHC underperformed the Market in Australia which returned 2.2% over the past year.
RHC Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Ramsay Health Care
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Ramsay Health Care.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 13 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.5% |
| Perpetual Growth Rate | 10-Year AU Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year AU Govt Bond Rate | 2.3% |
| Equity Risk Premium | S&P Global | 7.7% |
| Healthcare Unlevered Beta | Simply Wall St/ S&P Global | 0.36 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.364 (1 + (1- 30%) (33.04%)) |
0.448 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 7.69%) |
8.46% |
Discounted Cash Flow Calculation for ASX:RHC using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Ramsay Health Care is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (AUD, Millions) | 413.76 | 584.18 | 567.05 | 540.03 | 624.10 |
| Source | Analyst x2 | Analyst x3 | Analyst x2 | Analyst x1 | Est @ 15.57% |
|
Present Value Discounted (@ 8.46%) |
381.48 | 496.58 | 444.41 | 390.21 | 415.78 |
| Present value of next 5 years cash flows | A$2,128.45 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= A$624.10 × (1 + 2.31%) ÷ (8.46% – 2.31%) |
A$10,382.00 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= A$10,382.00 ÷ (1 + 8.46%)5 |
A$6,916.47 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= A$2,128.45 + A$6,916.47 |
A$9,044.93 |
| Equity Value per Share (AUD) |
= Total value / Shares Outstanding
= A$9,044.93 / 200.93 |
A$45.02 |
| Calculation | Result | |
|---|---|---|
| Value per share (AUD) | From above. | A$45.02 |
| Current discount | Discount to share price of
A$59.88
= -1 x (A$59.88 - A$45.02) / A$45.02 |
-33% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Ramsay Health Care is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Ramsay Health Care's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Ramsay Health Care's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-06-30) in AUD | A$1.87 |
| ASX:RHC Share Price ** | ASX (2019-02-22) in AUD | A$59.88 |
| Australia Healthcare Industry PE Ratio | Median Figure of 21 Publicly-Listed Healthcare Companies | 18.11x |
| Australia Market PE Ratio | Median Figure of 560 Publicly-Listed Companies | 15.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Ramsay Health Care.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = ASX:RHC Share Price ÷ EPS (both in AUD) = 59.88 ÷ 1.87 |
32.07x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ramsay Health Care is overvalued based on earnings compared to the AU Healthcare industry average.
- Ramsay Health Care is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does
Ramsay Health Care's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 32.07x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
13%per year |
| Australia Healthcare Industry PEG Ratio | Median Figure of 17 Publicly-Listed Healthcare Companies | 2.43x |
| Australia Market PEG Ratio | Median Figure of 364 Publicly-Listed Companies | 1.46x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 32.07x ÷ 13% |
2.47x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ramsay Health Care is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Ramsay Health Care's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-06-30) in AUD | A$10.48 |
| ASX:RHC Share Price * | ASX (2019-02-22) in AUD | A$59.88 |
| Australia Healthcare Industry PB Ratio | Median Figure of 27 Publicly-Listed Healthcare Companies | 1.54x |
| Australia Market PB Ratio | Median Figure of 1,665 Publicly-Listed Companies | 1.64x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = ASX:RHC Share Price ÷ Book Value per Share (both in AUD) = 59.88 ÷ 10.48 |
5.72x |
* Primary Listing of Ramsay Health Care.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ramsay Health Care is overvalued based on assets compared to the AU Healthcare industry average.
Value checks
We assess Ramsay Health Care's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check) Ramsay Health Care has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
RHC Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Ramsay Health Care's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
- Ramsay Health Care's earnings growth is expected to exceed the Australia market average.
- Ramsay Health Care's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| ASX:RHC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | 13% |
| ASX:RHC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | 9.5% |
| Australia Healthcare Industry Earnings Growth Rate | Market Cap Weighted Average | 10.4% |
| Australia Healthcare Industry Revenue Growth Rate | Market Cap Weighted Average | 6.9% |
| Australia Market Earnings Growth Rate | Market Cap Weighted Average | 4.9% |
| Australia Market Revenue Growth Rate | Market Cap Weighted Average | 2.5% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (7 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 14,179 | 739 | 1 | |
| 2022-06-30 | 13,753 | 721 | 2 | |
| 2021-06-30 | 12,849 | 1,275 | 646 | 10 |
| 2020-06-30 | 12,015 | 1,238 | 599 | 13 |
| 2019-06-30 | 10,723 | 1,101 | 542 | 13 |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-06-30 | 9,176 | 995 | 376 |
| 2018-03-31 | 9,003 | 947 | 422 |
| 2017-12-31 | 8,834 | 900 | 467 |
| 2017-09-30 | 8,769 | 891 | 472 |
| 2017-06-30 | 8,703 | 882 | 476 |
| 2017-03-31 | 8,766 | 940 | 472 |
| 2016-12-31 | 8,829 | 998 | 468 |
| 2016-09-30 | 8,758 | 952 | 453 |
| 2016-06-30 | 8,686 | 905 | 437 |
| 2016-03-31 | 8,438 | 838 | 421 |
| 2015-12-31 | 8,190 | 771 | 406 |
| 2015-09-30 | 7,773 | 759 | 389 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (7 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from Ramsay Health Care Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 3.66 | 3.66 | 3.66 | 1.00 |
| 2022-06-30 | 3.48 | 3.48 | 3.48 | 1.00 |
| 2021-06-30 | 3.30 | 3.43 | 3.23 | 5.00 |
| 2020-06-30 | 3.05 | 3.24 | 2.87 | 7.00 |
| 2019-06-30 | 2.77 | 2.86 | 2.65 | 7.00 |
| Date (Data in AUD Millions) | EPS * |
|---|---|
| 2018-06-30 | 1.87 |
| 2018-03-31 | 2.09 |
| 2017-12-31 | 2.32 |
| 2017-09-30 | 2.34 |
| 2017-06-30 | 2.37 |
| 2017-03-31 | 2.35 |
| 2016-12-31 | 2.33 |
| 2016-09-30 | 2.25 |
| 2016-06-30 | 2.18 |
| 2016-03-31 | 2.10 |
| 2015-12-31 | 2.02 |
| 2015-09-30 | 1.93 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Ramsay Health Care's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Ramsay Health Care has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
RHC Past Performance
How has Ramsay Health Care performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Ramsay Health Care's year on year earnings growth rate has been positive over the past 5 years.
- Ramsay Health Care's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Ramsay Health Care's 1-year earnings growth is negative, it can't be compared to the AU Healthcare industry average.
Earnings and Revenue History
All data from Ramsay Health Care Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-06-30 | 9,176.24 | 376.02 | ||
| 2018-03-31 | 9,003.49 | 421.57 | ||
| 2017-12-31 | 8,833.60 | 467.12 | ||
| 2017-09-30 | 8,769.48 | 471.59 | ||
| 2017-06-30 | 8,702.51 | 476.07 | ||
| 2017-03-31 | 8,765.70 | 472.18 | ||
| 2016-12-31 | 8,828.89 | 468.29 | ||
| 2016-09-30 | 8,757.58 | 452.81 | ||
| 2016-06-30 | 8,686.27 | 437.34 | ||
| 2016-03-31 | 8,437.99 | 421.48 | ||
| 2015-12-31 | 8,189.71 | 405.62 | ||
| 2015-09-30 | 7,773.41 | 388.71 | ||
| 2015-06-30 | 7,357.11 | 371.81 | ||
| 2015-03-31 | 6,625.98 | 347.76 | ||
| 2014-12-31 | 5,894.86 | 323.71 | ||
| 2014-09-30 | 5,404.78 | 306.78 | ||
| 2014-06-30 | 4,914.70 | 289.86 | ||
| 2014-03-31 | 4,690.19 | 280.65 | -65.36 | |
| 2013-12-31 | 4,465.68 | 271.44 | -130.72 | |
| 2013-09-30 | 4,321.53 | 261.17 | -65.36 | |
| 2013-06-30 | 4,177.38 | 250.90 | ||
| 2013-03-31 | 4,118.78 | 245.37 | 65.36 | |
| 2012-12-31 | 4,060.19 | 239.85 | 130.72 | |
| 2012-09-30 | 4,010.82 | 233.14 | 65.36 | |
| 2012-06-30 | 3,961.45 | 226.43 | ||
| 2012-03-31 | 3,903.59 | 214.89 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Ramsay Health Care has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Ramsay Health Care used its assets more efficiently than the AU Healthcare industry average last year based on Return on Assets.
- Ramsay Health Care's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Ramsay Health Care's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Ramsay Health Care has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
RHC Health
How is Ramsay Health Care's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Ramsay Health Care's finances.
The net worth of a company is the difference between its assets and liabilities.
- Ramsay Health Care is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Ramsay Health Care's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Ramsay Health Care Company Filings, last reported 7 months ago.
| Date (Data in AUD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-06-30 | 2,447.41 | 3,975.16 | 770.65 |
| 2018-03-31 | 2,447.41 | 3,975.16 | 770.65 |
| 2017-12-31 | 2,420.70 | 3,676.34 | 436.53 |
| 2017-09-30 | 2,420.70 | 3,676.34 | 436.53 |
| 2017-06-30 | 2,358.69 | 3,377.47 | 419.52 |
| 2017-03-31 | 2,358.69 | 3,377.47 | 419.52 |
| 2016-12-31 | 2,190.90 | 3,454.18 | 409.23 |
| 2016-09-30 | 2,190.90 | 3,454.18 | 409.23 |
| 2016-06-30 | 2,046.06 | 3,508.27 | 328.99 |
| 2016-03-31 | 2,046.06 | 3,508.27 | 328.99 |
| 2015-12-31 | 1,924.02 | 3,445.35 | 216.06 |
| 2015-09-30 | 1,924.02 | 3,445.35 | 216.06 |
| 2015-06-30 | 1,837.79 | 3,168.37 | 315.86 |
| 2015-03-31 | 1,837.79 | 3,168.37 | 315.86 |
| 2014-12-31 | 1,612.84 | 3,238.61 | 319.19 |
| 2014-09-30 | 1,612.84 | 3,238.61 | 319.19 |
| 2014-06-30 | 1,743.64 | 1,382.52 | 167.89 |
| 2014-03-31 | 1,743.64 | 1,382.52 | 167.89 |
| 2013-12-31 | 1,689.03 | 1,447.36 | 127.75 |
| 2013-09-30 | 1,689.03 | 1,447.36 | 127.75 |
| 2013-06-30 | 1,541.82 | 1,280.93 | 272.25 |
| 2013-03-31 | 1,541.82 | 1,280.93 | 272.25 |
| 2012-12-31 | 1,468.53 | 1,198.24 | 267.80 |
| 2012-09-30 | 1,468.53 | 1,198.24 | 267.80 |
| 2012-06-30 | 1,406.20 | 1,098.10 | 173.42 |
| 2012-03-31 | 1,406.20 | 1,098.10 | 173.42 |
- Ramsay Health Care's level of debt (162.4%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (83.1% vs 162.4% today).
- Debt is well covered by operating cash flow (25%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).
Financial health checks
We assess Ramsay Health Care's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Ramsay Health Care has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
RHC Dividends
What is Ramsay Health Care's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
A$2,000 of
Ramsay Health Care
shares you are expected to receive
A$48
in your first year as a dividend.
Dividend Amount
- Ramsay Health Care's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.67%).
- Ramsay Health Care's dividend is below the markets top 25% of dividend payers in Australia (5.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Australia Healthcare Industry Average Dividend Yield | Market Cap Weighted Average of 21 Stocks | 3.2% |
| Australia Market Average Dividend Yield | Market Cap Weighted Average of 423 Stocks | 4.4% |
| Australia Minimum Threshold Dividend Yield | 10th Percentile | 1.6% |
| Australia Bottom 25% Dividend Yield | 25th Percentile | 2.7% |
| Australia Top 25% Dividend Yield | 75th Percentile | 6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in A$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-06-30 | 1.94 | 1.00 |
| 2022-06-30 | 1.87 | 2.00 |
| 2021-06-30 | 1.73 | 11.00 |
| 2020-06-30 | 1.61 | 14.00 |
| 2019-06-30 | 1.48 | 14.00 |
| Date (Data in A$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-09-11 | 1.440 | 2.576 |
| 2018-08-29 | 1.440 | 2.600 |
| 2018-02-27 | 1.390 | 2.335 |
| 2017-08-29 | 1.345 | 2.010 |
| 2017-02-22 | 1.250 | 1.768 |
| 2016-09-13 | 1.190 | 1.656 |
| 2016-08-29 | 1.190 | 1.495 |
| 2016-02-24 | 1.075 | 1.558 |
| 2015-09-08 | 1.010 | 1.627 |
| 2015-08-26 | 1.010 | 1.641 |
| 2014-09-09 | 0.850 | 1.440 |
| 2014-08-27 | 0.850 | 1.624 |
| 2014-02-25 | 0.755 | 1.609 |
| 2013-09-09 | 0.705 | 1.775 |
| 2013-08-28 | 0.705 | 1.934 |
| 2012-08-22 | 0.600 | 2.049 |
| 2012-02-23 | 0.550 | 2.625 |
| 2011-08-25 | 0.520 | 2.779 |
| 2011-02-24 | 0.475 | 2.656 |
| 2010-08-26 | 0.435 | 2.702 |
| 2010-02-25 | 0.400 | 2.866 |
| 2009-08-28 | 0.380 | 3.424 |
| 2009-02-26 | 0.340 | 3.289 |
| 2009-02-24 | 0.325 | 3.413 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Ramsay Health Care's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.3x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
Income/ dividend checks
We assess Ramsay Health Care's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Ramsay Health Care afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Ramsay Health Care has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
RHC Management
CEO
| COMPENSATION | A$6,174,031 |
| AGE | 57 |
| TENURE AS CEO | 1.6 years |
CEO Bio
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 the Group Chief Operating Officer of Ramsay Health Care Limited from January 01, 2015 to July 3, 2017. Mr. McNally served as the Head of Global Strategy and European Operations of Ramsay Health Care Limited and served as its Head of Strategic Development and Business Development Manager. Mr. McNally has held a variety of roles and responsibilities in over 26 years with Ramsay Health Care following a number of years working in both the public and private health sectors in Australia. Mr McNally is one of Ramsay’s longest serving Executives having commenced with the Company in 1988. Mr. McNally has led Ramsay's growth strategy through a period which has seen it increase in size more than 10 times over the decade. This included capacity expansion of the existing portfolio, greenfield developments and acquisitions, most significantly the company-transforming acquisitions of Affinity Health Care, Capio UK, Ramsay Santé, Ramsay Sime Darby and Générale de Santé. Mr. McNally has direct responsibility for Ramsay's UK and Asian operations and the overall Group Strategy as well as broader responsibilities across the group. He has been Chairman of the board at Ramsay Générale de Santé SA and serves as its Director since October 1, 2014. He serves as a Director of Ramsay Health Care (UK) Limited. Since July 2013, Mr. McNally was a Director of Ramsay Sime Darby Health Care. Since October 2014, Mr. McNally was a Director of Générale de Santé.
CEO Compensation
- Craig's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
- Craig's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure
Average tenure and age of the Ramsay Health Care management team in years:
- The tenure for the Ramsay Health Care management team is about average.
Management Team
Craig McNally
CEO, MD & Executive Director
A$6M
57
1.6 yrs
Bruce Soden
Group CFO
A$5M
64
22.1 yrs
Danny Sims
CEO of Ramsay Australia
A$3M
4.1 yrs
John D. O'Grady
Group General Counsel & Company Secretary
12.1 yrs
Carmel Monaghan
Group Chief of Staff
47
4.1 yrs
Colleen Harris
Group Chief People Officer
Louis Desheng
Executive Chairman of Ramsay Health Care China Region
John Horvath
Group Chief Medical Officer
Olivier Chretien
Group Chief Strategy Officer
51
0.8 yrs
Andrew Wearne
Global Chief Audit Executive
Board of Directors Tenure
Average tenure and age of the Ramsay Health Care board of directors in years:
- The tenure for the Ramsay Health Care board of directors is about average.
Board of Directors
Michael Siddle
Non-Executive Chairman
A$734K
70
4.8 yrs
Craig McNally
CEO, MD & Executive Director
A$6M
57
Peter Evans
Non-Executive Deputy Chairman
A$478K
69
4.8 yrs
Bruce Soden
Group CFO
A$5M
64
22.1 yrs
Rod McGeoch
Non-Executive Director
A$333K
72
21.6 yrs
Kerry Chishoim Roxburgh
Lead Independent Non-Executive Director
A$347K
76
6.7 yrs
David Thodey
Non-Executive Director
A$173K
64
1.3 yrs
Claudia Ricarda Rita Dyckerhoff
Non-Executive Director
0.3 yrs
Alison Deans
Non-Executive Director
0.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (A$) | Value (A$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 30. Apr 18 | Sell | Craig McNally | Individual | 23. Apr 18 | 26. Apr 18 | -75,000 | A$64.02 | A$-4,772,582 | ||
| 12. Mar 18 | Sell | Kerry Chishoim Roxburgh | Individual | 07. Mar 18 | 08. Mar 18 | -17,500 | A$62.51 | A$-1,093,633 | ||
| 08. Mar 18 | Sell | Roderick McGeoch | Individual | 06. Mar 18 | 06. Mar 18 | -4,500 | A$63.00 | A$-283,500 | ||
Management checks
We assess Ramsay Health Care's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Ramsay Health Care has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
RHC News
Simply Wall St News
Should We Worry About Ramsay Health Care Limited's (ASX:RHC) P/E Ratio?
To keep it practical, we'll show how Ramsay Health Care Limited's (ASX:RHC) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Ramsay Health Care's P/E ratio is 31.36. … How Do I Calculate Ramsay Health Care's Price To Earnings Ratio
Simply Wall St - – Full articleEvaluating Ramsay Health Care Limited’s (ASX:RHC) Investments In Its Business
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleIs Ramsay Health Care Limited (ASX:RHC) An Attractive Dividend Stock?
Historically, Ramsay Health Care Limited (ASX:RHC) has been paying a dividend to shareholders. … Let's dig deeper into whether Ramsay Health Care should have a place in your portfolio. … Check out our latest analysis for Ramsay Health Care?
Simply Wall St - – Full articleWhat Are Analysts Saying About Ramsay Health Care Limited's (ASX:RHC) Growth?
Since Ramsay Health Care Limited (ASX:RHC) released its earnings in June 2018,. … the consensus outlook from analysts appear fairly confident, … the past 5-year average growth rate of 12%
Simply Wall St - – Full articleCan Ramsay Health Care Limited (ASX:RHC) Maintain Its Strong Returns?
Our data shows Ramsay Health Care has a return on equity of 17% for the last year. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHave Insiders Been Selling Ramsay Health Care Limited (ASX:RHC) Shares?
So we'll take a look at whether insiders have been buying or selling shares in Ramsay Health Care Limited (ASX:RHC). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Ramsay Health Care.
Simply Wall St - – Full articleIs Ramsay Health Care Limited's (ASX:RHC) Stock Available For A Good Price After Accounting For Growth?
Ramsay Health Care Limited (ASX:RHC) closed yesterday at A$55.63, which left some investors asking whether the high earnings potential can still be justified at this price. … View our latest analysis for Ramsay Health Care? … According to the analysts covering the company, the following few years should bring about good growth prospects for Ramsay Health Care
Simply Wall St - – Full articleShould We Worry About Ramsay Health Care Limited's (ASX:RHC) P/E Ratio?
We'll look at Ramsay Health Care Limited's (ASX:RHC) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Ramsay Health Care's P/E ratio is 30.58. … How Do I Calculate Ramsay Health Care's Price To Earnings Ratio
Simply Wall St - – Full articleWhy Ramsay Health Care Limited (ASX:RHC) Is A Dividend Rockstar
There is a lot to be liked about Ramsay Health Care Limited (ASX:RHC) as an income stock. … Let's take a look at Ramsay Health Care in more detail. … View our latest analysis for Ramsay Health Care
Simply Wall St - – Full articleWhat Kind Of Shareholders Own Ramsay Health Care Limited (ASX:RHC)?
Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Ramsay Health Care has a market capitalization of AU$11.63b, so it's too big to fly under the radar. … View our latest analysis for Ramsay Health Care
Simply Wall St - – Full articleRHC Company Info
Map
Description
Ramsay Health Care Limited provides health care services to public and private patients. The company’s health care services comprise day surgery procedures and complex surgeries, as well as psychiatric care and rehabilitation services. It operates approximately 235 hospitals and day surgery facilities with approximately 25,000 beds in Australia, the United Kingdom, France, Indonesia, Malaysia, Maldives, and Italy. The company was founded in 1964 and is based in Sydney, Australia.
Details
| Name: | Ramsay Health Care Limited |
| RHC | |
| Exchange: | ASX |
| Founded: | 1964 |
| A$12,031,483,670 | |
| 200,926,581 | |
| Website: | http://www.ramsayhealth.com |
| Address: |
Ramsay Health Care Limited 126 Phillip Street, Suite 18.03, Sydney, New South Wales, 2000, Australia |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| ASX | RHC | Ordinary Shares | Australian Securities Exchange | AU | AUD | 29. Sep 1997 | |
| OTCPK | RMSY.F | Ordinary Shares | Pink Sheets LLC | US | USD | 29. Sep 1997 | |
| DB | RMY | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 29. Sep 1997 | |
| CHIA | RHC | Ordinary Shares | Chi-X Australia | AU | AUD | 29. Sep 1997 | |
| ASX | RHCPA | FR-STEP UP NON-CUM CNV RED PREF (CARES) | Australian Securities Exchange | AU | AUD | 24. May 2005 | |
| OTCPK | RMYH.Y | UNSPONSORED ADR | Pink Sheets LLC | US | USD | 04. Jun 2015 |
Number of employees
Current staff
Industry
| Health Care Facilities | |
| Healthcare |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/23 10:32 |
| End of day share price update: | 2019/02/22 00:00 |
| Last estimates confirmation: | 2019/02/22 |
| Last earnings filing: | 2018/09/11 |
| Last earnings reported: | 2018/06/30 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
