Ramsay Health Care
Market Cap
AU$14.9b
Last Updated
2020/11/23 10:30 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
Mediocre balance sheet and slightly overvalued.
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
-3.4%
RHC
-0.2%
AU Healthcare
2.0%
AU Market
1 Year Return
-10.9%
RHC
0.2%
AU Healthcare
-1.2%
AU Market
Return vs Industry: RHC underperformed the Australian Healthcare industry which returned 0.2% over the past year.
Return vs Market: RHC underperformed the Australian Market which returned -1.2% over the past year.
Shareholder returns
| RHC | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | -0.2% | 2.0% |
| 30 Day | 1.0% | -0.5% | 5.5% |
| 90 Day | -1.4% | 1.2% | 6.8% |
| 1 Year | -10.0%-10.9% | 2.1%0.2% | 2.2%-1.2% |
| 3 Year | 0.4%-5.2% | 19.6%10.1% | 22.4%7.1% |
| 5 Year | 7.0%-2.6% | 22.8%6.0% | 53.9%23.2% |
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
3 weeks ago | Simply Wall St
What Type Of Shareholders Make Up Ramsay Health Care Limited's (ASX:RHC) Share Registry?1 month ago | Simply Wall St
Is There An Opportunity With Ramsay Health Care Limited's (ASX:RHC) 42% Undervaluation?1 month ago | Simply Wall St
We Wouldn't Rely On Ramsay Health Care's (ASX:RHC) Statutory Earnings As A GuideValuation
Is Ramsay Health Care undervalued compared to its fair value and its price relative to the market?
40.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RHC (A$65.31) is trading below our estimate of fair value (A$109.26)
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 (49.8x) compared to the AU Healthcare industry average (30.5x).
PE vs Market: RHC is poor value based on its PE Ratio (49.8x) compared to the Australian market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: RHC is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: RHC is overvalued based on its PB Ratio (4.2x) compared to the AU Healthcare industry average (1.8x).
Next Steps
Future Growth
How is Ramsay Health Care forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
19.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RHC's forecast earnings growth (19.5% per year) is above the savings rate (2.3%).
Earnings vs Market: RHC's earnings (19.5% per year) are forecast to grow faster than the Australian market (17.9% per year).
High Growth Earnings: RHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: RHC's revenue (4.3% per year) is forecast to grow slower than the Australian market (5.1% per year).
High Growth Revenue: RHC's revenue (4.3% 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%).
Next Steps
Past Performance
How has Ramsay Health Care performed over the past 5 years?
0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RHC has a large one-off gain of A$172.4M impacting its June 30 2020 financial results.
Growing Profit Margin: RHC's current net profit margins (2.2%) are lower than last year (4.6%).
Past Earnings Growth Analysis
Earnings Trend: RHC's earnings have grown by 0.7% 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 (-48.8%) over the past year, making it difficult to compare to the Healthcare industry average (-8.1%).
Return on Equity
High ROE: RHC's Return on Equity (7.3%) is considered low.
Next Steps
Financial Health
How is Ramsay Health Care's financial position?
Financial Position Analysis
Short Term Liabilities: RHC's short term assets (A$4.1B) exceed its short term liabilities (A$3.8B).
Long Term Liabilities: RHC's short term assets (A$4.1B) do not cover its long term liabilities (A$10.0B).
Debt to Equity History and Analysis
Debt Level: RHC's debt to equity ratio (101%) is considered high.
Reducing Debt: RHC's debt to equity ratio has reduced from 157% to 101% over the past 5 years.
Debt Coverage: RHC's debt is well covered by operating cash flow (39.3%).
Interest Coverage: RHC's interest payments on its debt are not well covered by EBIT (1.7x coverage).
Balance Sheet
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Dividend
What is Ramsay Health Care current dividend yield, its reliability and sustainability?
2.05%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RHC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RHC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RHC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: RHC is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RHC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Craig McNally (59 yo)
3.33yrs
Tenure
AU$1,917,045
Compensation
Mr. Craig Ralph McNally has been Chief Executive Officer and Managing Director of Ramsay Health Care Limited since July 3, 2017 and serves as its Executive Director. Mr. McNally served as Group Chief Opera...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD1.40M) is below average for companies of similar size in the Australian market ($USD3.58M).
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 | 3.33yrs | AU$1.92m | 0.15% A$ 23.0m | |
| Group Chief Financial Officer | 0.58yr | AU$1.31m | 0.000080% A$ 11.9k | |
| Group General Counsel & Company Secretary | 1.42yrs | no data | no data | |
| Group Chief People Officer | no data | no data | no data | |
| Executive Chairman of Ramsay Health Care China Region | no data | no data | no data | |
| Group Chief Medical Officer | no data | no data | no data | |
| Global Chief Audit Executive | no data | no data | no data | |
| Chief Executive Officer of Ramsay Australia | 0.83yr | no data | no data | |
| Chief Executive of UK Operations | 5.92yrs | no data | no data | |
| CEO of Ramsay Générale De Santé | no data | no data | no data | |
| CEO of Ramsay UK | no data | no data | no data | |
| CEO of Ramsay Sime Darb | no data | no data | no data |
1.4yrs
Average Tenure
52yo
Average Age
Experienced Management: RHC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 3.33yrs | AU$1.92m | 0.15% A$ 23.0m | |
| Independent Non-Executive Deputy Chairman | 6.5yrs | AU$473.78k | 0.0049% A$ 724.2k | |
| Independent Non-Executive Chairman | 6.5yrs | AU$731.60k | 1.72% A$ 255.1m | |
| Lead Independent Director | 0.67yr | AU$338.38k | 0.0049% A$ 722.7k | |
| Non-Executive Director | 0.67yr | AU$89.80k | 0.00042% A$ 62.5k | |
| Independent Non-Executive Director | 1.17yrs | AU$252.40k | 0.0022% A$ 324.2k | |
| Independent Non-Executive Director | 2.08yrs | AU$310.35k | 0.0016% A$ 242.4k | |
| Independent Non-Executive Director | 2yrs | AU$318.87k | 0.0025% A$ 373.3k |
2.0yrs
Average Tenure
66yo
Average Age
Experienced Board: RHC's board of directors are not considered experienced ( 2 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 been diluted in the past year, with total shares outstanding growing by 13.4%.
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$14.871b
- 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
| 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/23 10:30 |
| End of Day Share Price | 2020/11/23 00:00 |
| Earnings | 2020/06/30 |
| 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.