| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 4/6 |
RHC Stock Overview
Ramsay Health Care Limited owns and operates hospitals for public and private patients.
Ramsay Health Care Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$64.53 |
| 52 Week High | AU$74.01 |
| 52 Week Low | AU$60.76 |
| Beta | 0.53 |
| 1 Month Change | -8.47% |
| 3 Month Change | -6.75% |
| 1 Year Change | 2.92% |
| 3 Year Change | 11.22% |
| 5 Year Change | -5.56% |
| Change since IPO | 2,846.58% |
Recent News & Updates
We Think Ramsay Health Care (ASX:RHC) Is Taking Some Risk With Its Debt
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Ramsay Health Care (ASX:RHC) May Have Issues Allocating Its Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a...
Is There An Opportunity With Ramsay Health Care Limited's (ASX:RHC) 27% Undervaluation?
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Ramsay Health Care...
Shareholder Returns
| RHC | AU Healthcare | AU Market | |
|---|---|---|---|
| 7D | -3.7% | -1.5% | -0.5% |
| 1Y | 2.9% | 11.3% | 8.4% |
Return vs Industry: RHC underperformed the Australian Healthcare industry which returned 11.3% over the past year.
Return vs Market: RHC underperformed the Australian Market which returned 8.4% over the past year.
Price Volatility
| RHC volatility | |
|---|---|
| RHC Average Weekly Movement | 3.1% |
| Healthcare Industry Average Movement | 5.6% |
| Market Average Movement | 8.6% |
| 10% most volatile stocks in AU Market | 15.5% |
| 10% least volatile stocks in AU Market | 3.6% |
Stable Share Price: RHC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: RHC's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1964 | 80,000 | Craig McNally | https://www.ramsayhealth.com |
Ramsay Health Care Limited owns and operates hospitals for public and private patients. It also offers health care services. It operates facilities in 460 locations in the Asia Pacific, the United Kingdom, France, and Nordics.
Ramsay Health Care Fundamentals Summary
| RHC fundamental statistics | |
|---|---|
| Market Cap | AU$14.70b |
| Earnings (TTM) | AU$439.90m |
| Revenue (TTM) | AU$12.86b |
33.4x
P/E Ratio1.1x
P/S RatioIs RHC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RHC income statement (TTM) | |
|---|---|
| Revenue | AU$12.86b |
| Cost of Revenue | AU$11.27b |
| Gross Profit | AU$1.59b |
| Expenses | AU$1.15b |
| Earnings | AU$439.90m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 24, 2022
| Earnings per share (EPS) | 1.93 |
| Gross Margin | 12.36% |
| Net Profit Margin | 3.42% |
| Debt/Equity Ratio | 116.9% |
How did RHC perform over the long term?
See historical performance and comparisonDividends
2.3%
Current Dividend Yield78%
Payout RatioValuation
Is Ramsay Health Care undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RHC (A$64.53) is trading below our estimate of fair value (A$135.97)
Significantly Below Fair Value: RHC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RHC is poor value based on its PE Ratio (33.4x) compared to the Australian Healthcare industry average (25.9x).
PE vs Market: RHC is poor value based on its PE Ratio (33.4x) compared to the Australian market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: RHC is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: RHC is overvalued based on its PB Ratio (3.9x) compared to the AU Healthcare industry average (2.7x).
Future Growth
How is Ramsay Health Care forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
15.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RHC's forecast earnings growth (15.2% per year) is above the savings rate (1.9%).
Earnings vs Market: RHC's earnings (15.2% per year) are forecast to grow faster than the Australian market (11.1% per year).
High Growth Earnings: RHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: RHC's revenue (5.8% per year) is forecast to grow faster than the Australian market (4.8% per year).
High Growth Revenue: RHC's revenue (5.8% 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 (15.2%).
Past Performance
How has Ramsay Health Care performed over the past 5 years?
-6.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RHC has a large one-off gain of A$431.0M impacting its June 30 2021 financial results.
Growing Profit Margin: RHC's current net profit margins (3.4%) are higher than last year (2.2%).
Past Earnings Growth Analysis
Earnings Trend: RHC's earnings have declined by 6.1% per year over the past 5 years.
Accelerating Growth: RHC's earnings growth over the past year (61.3%) exceeds its 5-year average (-6.1% per year).
Earnings vs Industry: RHC earnings growth over the past year (61.3%) underperformed the Healthcare industry 61.3%.
Return on Equity
High ROE: RHC's Return on Equity (11.2%) 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$5.4B) exceed its short term liabilities (A$3.7B).
Long Term Liabilities: RHC's short term assets (A$5.4B) do not cover its long term liabilities (A$11.1B).
Debt to Equity History and Analysis
Debt Level: RHC's net debt to equity ratio (94.8%) is considered high.
Reducing Debt: RHC's debt to equity ratio has reduced from 158.6% to 116.9% over the past 5 years.
Debt Coverage: RHC's debt is well covered by operating cash flow (27.8%).
Interest Coverage: RHC's interest payments on its debt are not well covered by EBIT (1.8x coverage).
Balance Sheet
Dividend
What is Ramsay Health Care current dividend yield, its reliability and sustainability?
2.35%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RHC's dividend (2.35%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).
High Dividend: RHC's dividend (2.35%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).
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: At its current payout ratio (78.4%), RHC's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RHC's dividends in 3 years are forecast to be covered by earnings (55% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Craig McNally (60 yo)
4.5yrs
Tenure
AU$5,909,795
Compensation
Mr. Craig Ralph McNally has been Chief Executive Officer and Managing Director of Ramsay Health Care Limited since July 3, 2017 and serves as its Executive Director. Mr. McNally served as Group Chief Opera...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD4.29M) is about average for companies of similar size in the Australian market ($USD3.57M).
Compensation vs Earnings: Craig's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: RHC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: RHC's board of directors are considered experienced (3.2 years average tenure).
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 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
- Implied Market Cap: AU$14.699b
- Shares outstanding: 227.78m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 15:35 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.