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Ramsay Health Care

ASX:RHC
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RHC
ASX
A$12B
Market Cap
  1. Home
  2. AU
  3. Healthcare
Company description

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
2.3%
ASX:RHC
1.6%
AU Healthcare
1.5%
AU Market
1 Year Returns
-12%
ASX:RHC
-7.1%
AU Healthcare
2.2%
AU Market
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.
Price Volatility
RHC
Industry
5yr Volatility vs Market

RHC Value

 Is Ramsay Health Care undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ramsay Health Care.

ASX:RHC Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for ASX:RHC
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.

ASX:RHC DCF 1st Stage: Next 5 year cash flow forecast
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
ASX:RHC DCF 2nd Stage: Terminal Value
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
ASX:RHC Total Equity Value
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
ASX:RHC Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
ASX:RHC PE (Price to Earnings) Ratio Data Sources
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.

ASX:RHC PE (Price to Earnings) Ratio Calculation
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?
Raw Data
ASX:RHC PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

ASX:RHC PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
ASX:RHC PB (Price to Book) Ratio Data Sources
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
ASX:RHC PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Ramsay Health Care's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. 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

 How is Ramsay Health Care expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

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!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ramsay Health Care expected to grow at an attractive rate?
  • 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
Raw Data
ASX:RHC Future Growth Rates Data Sources
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
Raw Data
ASX:RHC Analysts Growth Expectations Data Sources
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 numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RHC Future Estimates Data
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
ASX:RHC Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Ramsay Health Care's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • Ramsay Health Care's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:RHC 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.

ASX:RHC Future Estimates Data
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
ASX:RHC Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ramsay Health Care is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Ramsay Health Care's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Ramsay Health Care's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Ramsay Health Care's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ramsay Health Care Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RHC Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Ramsay Health Care's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Ramsay Health Care's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Ramsay Health Care Company Filings, last reported 7 months ago.

ASX:RHC Past Debt and Equity Data
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).
X
Financial health checks
We assess Ramsay Health Care's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ramsay Health Care has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.4%
Current annual income from Ramsay Health Care dividends. Estimated to be 2.7% next year.
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
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
ASX:RHC Annualized Past and Future Dividends
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.

ASX:RHC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 1.94 1.00
2022-06-30 1.87 2.00
2021-06-30 1.73 11.00
2020-06-30 1.61 14.00
2019-06-30 1.48 14.00
ASX:RHC Past Annualized Dividends Data
Date (Data in A$) 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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Ramsay Health Care's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Ramsay Health Care's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Craig McNally
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:

4.1
Average Tenure
54
Average Age
  • The tenure for the Ramsay Health Care management team is about average.
Management Team

Craig McNally

TITLE
CEO, MD & Executive Director
COMPENSATION
A$6M
AGE
57
TENURE
1.6 yrs

Bruce Soden

TITLE
Group CFO
COMPENSATION
A$5M
AGE
64
TENURE
22.1 yrs

Danny Sims

TITLE
CEO of Ramsay Australia
COMPENSATION
A$3M
TENURE
4.1 yrs

John D. O'Grady

TITLE
Group General Counsel & Company Secretary
TENURE
12.1 yrs

Carmel Monaghan

TITLE
Group Chief of Staff
AGE
47
TENURE
4.1 yrs

Colleen Harris

TITLE
Group Chief People Officer

Louis Desheng

TITLE
Executive Chairman of Ramsay Health Care China Region

John Horvath

TITLE
Group Chief Medical Officer

Olivier Chretien

TITLE
Group Chief Strategy Officer
AGE
51
TENURE
0.8 yrs

Andrew Wearne

TITLE
Global Chief Audit Executive
Board of Directors Tenure

Average tenure and age of the Ramsay Health Care board of directors in years:

4.8
Average Tenure
69
Average Age
  • The tenure for the Ramsay Health Care board of directors is about average.
Board of Directors

Michael Siddle

TITLE
Non-Executive Chairman
COMPENSATION
A$734K
AGE
70
TENURE
4.8 yrs

Craig McNally

TITLE
CEO, MD & Executive Director
COMPENSATION
A$6M
AGE
57

Peter Evans

TITLE
Non-Executive Deputy Chairman
COMPENSATION
A$478K
AGE
69
TENURE
4.8 yrs

Bruce Soden

TITLE
Group CFO
COMPENSATION
A$5M
AGE
64
TENURE
22.1 yrs

Rod McGeoch

TITLE
Non-Executive Director
COMPENSATION
A$333K
AGE
72
TENURE
21.6 yrs

Kerry Chishoim Roxburgh

TITLE
Lead Independent Non-Executive Director
COMPENSATION
A$347K
AGE
76
TENURE
6.7 yrs

David Thodey

TITLE
Non-Executive Director
COMPENSATION
A$173K
AGE
64
TENURE
1.3 yrs

Claudia Ricarda Rita Dyckerhoff

TITLE
Non-Executive Director
TENURE
0.3 yrs

Alison Deans

TITLE
Non-Executive Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
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
X
Management checks
We assess Ramsay Health Care's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Evaluating 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 -

Is 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 -

What 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 -

Can 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 -

Have 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 -

Is 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 -

Should 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 -

Why 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 -

What 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 -

RHC 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
Staff numbers
60,000
Ramsay Health Care employees.
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.