ASX:RHC

Stock Analysis Report

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Executive Summary

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


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

-1.4%

RHC

-1.1%

AU Healthcare

2.3%

AU Market


1 Year Return

-11.4%

RHC

-2.1%

AU Healthcare

-0.3%

AU Market

Return vs Industry: RHC underperformed the Australian Healthcare industry which returned -1.5% over the past year.

Return vs Market: RHC underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

RHCIndustryMarket
7 Day-1.4%-1.1%2.3%
30 Day0.6%-1.6%7.2%
90 Day-0.8%0.8%8.7%
1 Year-10.6%-11.4%-0.2%-2.1%3.1%-0.3%
3 Year-0.7%-6.3%16.4%7.2%24.2%8.8%
5 Year5.9%-3.6%19.7%3.4%55.4%24.4%

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

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RHC (A$65.08) 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 (49.7x) compared to the AU Healthcare industry average (30.4x).

PE vs Market: RHC is poor value based on its PE Ratio (49.7x) compared to the Australian market (22.5x).


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 (1.7x).


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 (5.2% 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


Next Steps

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

NamePositionTenureCompensationOwnership
Craig McNally
CEO, MD & Executive Director3.33yrsAU$1.92m0.15%
A$ 23.0m
Martyn Roberts
Group Chief Financial Officer0.58yrAU$1.31m0.000080%
A$ 11.9k
Henrietta Rowe
Group General Counsel & Company Secretary1.42yrsno datano data
Colleen Harris
Group Chief People Officerno datano datano data
Louis Desheng
Executive Chairman of Ramsay Health Care China Regionno datano datano data
John Horvath
Group Chief Medical Officerno datano datano data
Andrew Wearne
Global Chief Audit Executiveno datano datano data
Carmel Monaghan
Chief Executive Officer of Ramsay Australia0.83yrno datano data
Mark Page
Chief Executive of UK Operations5.92yrsno datano data
Pascal Roché
CEO of Ramsay Générale De Santéno datano datano data
Andrew Jones
CEO of Ramsay UKno datano datano data
Greg Brown
CEO of Ramsay Sime Darbno datano datano 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

NamePositionTenureCompensationOwnership
Craig McNally
CEO, MD & Executive Director3.33yrsAU$1.92m0.15%
A$ 23.0m
Peter Evans
Independent Non-Executive Deputy Chairman6.5yrsAU$473.78k0.0049%
A$ 724.2k
Michael Siddle
Independent Non-Executive Chairman6.5yrsAU$731.60k1.72%
A$ 255.1m
David Thodey
Lead Independent Director0.67yrAU$338.38k0.0049%
A$ 722.7k
Karen Lee Penrose
Non-Executive Director0.67yrAU$89.80k0.00042%
A$ 62.5k
James McMurdo
Independent Non-Executive Director1.17yrsAU$252.40k0.0022%
A$ 324.2k
Claudia Ricarda Rita Dyckerhoff
Independent Non-Executive Director2.08yrsAU$310.35k0.0016%
A$ 242.4k
Catriona Deans
Independent Non-Executive Director2yrsAU$318.87k0.0025%
A$ 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

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
RMYH.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:33
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.