Ramsay Health Care
Market Cap
AU$15.8b
Last Updated
2020/02/23 10:33 UTC
Data Sources
Company Financials +
Executive Summary
Ramsay Health Care Limited provides health care services to public and private patients.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record average dividend payer.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.5%
RHC
-1.2%
AU Healthcare
0.02%
AU Market
1 Year Return
31.2%
RHC
23.4%
AU Healthcare
14.6%
AU Market
Return vs Industry: RHC exceeded the Australian Healthcare industry which returned 23.4% over the past year.
Return vs Market: RHC exceeded the Australian Market which returned 14.6% over the past year.
Shareholder returns
| RHC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.5% | -1.2% | 0.02% |
| 30 Day | -1.0% | -0.5% | 0.2% |
| 90 Day | 7.3% | 4.6% | 5.7% |
| 1 Year | 34.4%31.2% | 27.3%23.4% | 19.7%14.6% |
| 3 Year | 21.4%13.3% | 24.5%13.1% | 38.7%20.2% |
| 5 Year | 29.9%17.5% | 27.2%9.2% | 50.6%17.1% |
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
4 days ago | Simply Wall St
Could Ramsay Health Care Limited (ASX:RHC) Have The Makings Of Another Dividend Aristocrat?2 weeks ago | Simply Wall St
Is There An Opportunity With Ramsay Health Care Limited's (ASX:RHC) 48% Undervaluation?3 weeks ago | Simply Wall St
The Ramsay Health Care (ASX:RHC) Share Price Has Gained 37% And Shareholders Are Hoping For MoreValuation
Is Ramsay Health Care undervalued compared to its fair value and its price relative to the market?
49.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RHC (A$78.59) is trading below our estimate of fair value (A$154.83)
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 (29.7x) compared to the Healthcare industry average (19.8x).
PE vs Market: RHC is poor value based on its PE Ratio (29.7x) compared to the Australian market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: RHC is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: RHC is overvalued based on its PB Ratio (6.9x) compared to the AU Healthcare industry average (1.9x).
Next Steps
Future Growth
How is Ramsay Health Care forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RHC's forecast earnings growth (7.5% per year) is above the savings rate (1.1%).
Earnings vs Market: RHC's earnings (7.5% per year) are forecast to grow slower than the Australian market (9.3% per year).
High Growth Earnings: RHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: RHC's revenue (5% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: RHC's revenue (5% 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 high in 3 years time (20.5%)
Next Steps
Past Performance
How has Ramsay Health Care performed over the past 5 years?
6.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RHC has high quality earnings.
Growing Profit Margin: RHC's current net profit margins (4.6%) are higher than last year (4.1%).
Past Earnings Growth Analysis
Earnings Trend: RHC's earnings have grown by 6.8% per year over the past 5 years.
Accelerating Growth: RHC's earnings growth over the past year (41.7%) exceeds its 5-year average (6.8% per year).
Earnings vs Industry: RHC earnings growth over the past year (41.7%) exceeded the Healthcare industry 3.2%.
Return on Equity
High ROE: RHC's Return on Equity (18.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Ramsay Health Care's financial position?
Financial Position Analysis
Short Term Liabilities: RHC's short term assets (A$2.9B) exceed its short term liabilities (A$2.7B).
Long Term Liabilities: RHC's short term assets (A$2.9B) do not cover its long term liabilities (A$6.9B).
Debt to Equity History and Analysis
Debt Level: RHC's debt to equity ratio (175.5%) is considered high.
Reducing Debt: RHC's debt to equity ratio has increased from 79.4% to 175.5% over the past 5 years.
Debt Coverage: RHC's debt is not well covered by operating cash flow (17%).
Interest Coverage: RHC's interest payments on its debt are well covered by EBIT (6.2x coverage).
Balance Sheet
Inventory Level: RHC has a high level of physical assets or inventory.
Debt Coverage by Assets: RHC's debt is not covered by short term assets (assets are 0.5x debt).
Next Steps
Dividend
What is Ramsay Health Care's current dividend yield, its reliability and sustainability?
1.93%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RHC's dividend (1.93%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.29%).
High Dividend: RHC's dividend (1.93%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).
Stability and Growth of Payments
Stable Dividend: RHC's dividends per share have been stable 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 reasonable payout ratio (57.2%), RHC's dividend 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 (57.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Craig McNally (58yo)
2.6yrs
Tenure
AU$6,697,656
Compensation
Mr. Craig Ralph McNally has been Chief Executive Officer and Managing Director of Ramsay Health Care Limited since July 3, 2017 and serves as its Executive Director. Mr. McNally served as the Group Chief O ...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD4.44M) is about average for companies of similar size in the Australian market ($USD3.66M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 2.6yrs | AU$6.70m | 0.17% A$27.6m | |
| Group Chief Strategy Officer | 1.8yrs | AU$1.56m | no data | |
| CEO of Ramsay Australia | 5.1yrs | AU$3.08m | 0.051% A$8.1m | |
| Group General Counsel & Company Secretary | 0.7yrs | no data | no data | |
| Group Chief People Officer | 0yrs | no data | no data | |
| Group Chief of Staff | 5.1yrs | no data | no data | |
| Executive Chairman of Ramsay Health Care China Region | 0yrs | no data | no data | |
| Group Chief Medical Officer | 0yrs | no data | no data | |
| Global Chief Audit Executive | 0yrs | no data | no data | |
| Chief Executive of UK Operations | 5.2yrs | no data | no data |
3.8yrs
Average Tenure
50.5yo
Average Age
Experienced Management: RHC's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 2.6yrs | AU$6.70m | 0.17% A$27.6m | |
| Non-Executive Deputy Chairman | 5.8yrs | AU$479.48k | 0.0049% A$776.5k | |
| Non-Executive Chairman | 5.8yrs | AU$736.02k | 1.94% A$306.9m | |
| Non-Executive Director | 2.3yrs | AU$320.97k | 0.0046% A$732.3k | |
| Non-Executive Director | 0.4yrs | no data | 0.0022% A$347.2k | |
| Non-Executive Director | 1.3yrs | AU$205.12k | 0.00026% A$41.0k | |
| Non-Executive Director | 1.3yrs | AU$191.32k | 0.0022% A$353.5k |
1.8yrs
Average Tenure
67.5yo
Average Age
Experienced Board: RHC's board of directors are not considered experienced ( 1.8 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$15.783b
- Shares outstanding: 200.83m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RMSY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Sep 1997 |
| RHC | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Sep 1997 |
| RMY | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Sep 1997 |
| RHC | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Sep 1997 |
| RHCPA | ASX (Australian Securities Exchange) | FR-STEP UP NON-CUM CNV RED PREF | AU | AUD | May 2005 | |
| RMYH.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Jun 2015 |
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 and rehabilitation services. It operates through approximately 500 locations across Australia, the United Kingdom, France, Sweden, Norway, Denmark, Germany, Indonesia, Malaysia, Hong Kong, Italy, and Nordics. The company was founded in 1964 and is based in Sydney, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 10:33 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.