Stock Analysis Report

Executive Summary

Ramsay Health Care Limited provides health care services to public and private patients.

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




AU Healthcare


AU Market

1 Year Return




AU Healthcare


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

7 Day-1.5%-1.2%0.02%
30 Day-1.0%-0.5%0.2%
90 Day7.3%4.6%5.7%
1 Year34.4%31.2%27.3%23.4%19.7%14.6%
3 Year21.4%13.3%24.5%13.1%38.7%20.2%
5 Year29.9%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


Is Ramsay Health Care undervalued compared to its fair value and its price relative to the market?


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?


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?


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


What is Ramsay Health Care's current dividend yield, its reliability and sustainability?


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


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Craig McNally (58yo)





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

Craig McNally
CEO, MD & Executive Director2.6yrsAU$6.70m0.17% A$27.6m
Olivier Chretien
Group Chief Strategy Officer1.8yrsAU$1.56mno data
Daniel Sims
CEO of Ramsay Australia5.1yrsAU$3.08m0.051% A$8.1m
Henrietta Rowe
Group General Counsel & Company Secretary0.7yrsno datano data
Colleen Harris
Group Chief People Officer0yrsno datano data
Carmel Monaghan
Group Chief of Staff5.1yrsno datano data
Louis Desheng
Executive Chairman of Ramsay Health Care China Region0yrsno datano data
John Horvath
Group Chief Medical Officer0yrsno datano data
Andrew Wearne
Global Chief Audit Executive0yrsno datano data
Mark Page
Chief Executive of UK Operations5.2yrsno datano data


Average Tenure


Average Age

Experienced Management: RHC's management team is considered experienced (3.8 years average tenure).

Board Members

Craig McNally
CEO, MD & Executive Director2.6yrsAU$6.70m0.17% A$27.6m
Peter Evans
Non-Executive Deputy Chairman5.8yrsAU$479.48k0.0049% A$776.5k
Michael Siddle
Non-Executive Chairman5.8yrsAU$736.02k1.94% A$306.9m
David Thodey
Non-Executive Director2.3yrsAU$320.97k0.0046% A$732.3k
James McMurdo
Non-Executive Director0.4yrsno data0.0022% A$347.2k
Claudia Ricarda Rita Dyckerhoff
Non-Executive Director1.3yrsAU$205.12k0.00026% A$41.0k
Catriona Deans
Non-Executive Director1.3yrsAU$191.32k0.0022% A$353.5k


Average Tenure


Average Age

Experienced Board: RHC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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:

Number of Employees


  • Ramsay Health Care Limited
  • 126 Phillip Street
  • Suite 18.03
  • Sydney
  • New South Wales
  • 2000
  • Australia


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMSY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1997
RHCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 1997
RMYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1997
RHCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 1997
RHCPAASX (Australian Securities Exchange)FR-STEP UP NON-CUM CNV RED PREFAUAUDMay 2005


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:33
End of Day Share Price2020/02/21 00:00
Annual Earnings2019/06/30

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.