ASX:RHC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven 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

1.3%

RHC

0.7%

AU Healthcare

0.4%

AU Market


1 Year Return

28.5%

RHC

27.1%

AU Healthcare

14.8%

AU Market

Return vs Industry: RHC exceeded the Australian Healthcare industry which returned 27.1% over the past year.

Return vs Market: RHC exceeded the Australian Market which returned 14.8% over the past year.


Shareholder returns

RHCIndustryMarket
7 Day1.3%0.7%0.4%
30 Day7.2%4.1%0.4%
90 Day3.1%5.5%4.6%
1 Year31.6%28.5%31.1%27.1%21.4%14.8%
3 Year9.1%1.9%16.0%5.3%40.2%21.4%
5 Year49.8%35.4%45.3%25.0%54.5%19.5%

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?

26.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RHC (A$71.23) is trading above our estimate of fair value (A$50.81)

Significantly Below Fair Value: RHC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RHC is poor value based on its PE Ratio (26.9x) compared to the Healthcare industry average (18.2x).

PE vs Market: RHC is poor value based on its PE Ratio (26.9x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: RHC is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: RHC is overvalued based on its PB Ratio (6.2x) compared to the AU Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Ramsay Health Care forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHC's forecast earnings growth (6.8% per year) is above the savings rate (2.3%).

Earnings vs Market: RHC's earnings (6.8% per year) are forecast to grow slower than the Australian market (9.8% per year).

High Growth Earnings: RHC's earnings are forecast to grow, but not significantly.

Revenue vs Market: RHC's revenue (5.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RHC's revenue (5.7% 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 a high level of non-cash 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 1.8%.


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) exceeds its short term liabilities (A$2.7B)

Long Term Liabilities: RHC's short term assets (2.9B) do not cover its long term liabilities (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?

2.13%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.4%markettop25%5.6%industryaverage2.8%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: RHC's dividend (2.13%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.35%).

High Dividend: RHC's dividend (2.13%) is low compared to the top 25% of dividend payers in the Australian market (5.62%).


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 (55.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Craig McNally (58yo)

2.3yrs

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 ($USD4.58M) is about average for companies of similar size in the Australian market ($USD3.79M).

Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: RHC's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

70.5yo

Average Age

Experienced Board: RHC's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$4,937,59823 Sep 19
UBS Asset Management
EntityCompany
Shares79,101
Max PriceAU$62.58
SellAU$81,500,94623 Sep 19
UBS Asset Management
EntityCompany
Shares1,307,473
Max PriceAU$62.33
SellAU$9,70323 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares156
Max PriceAU$62.20
BuyAU$46,244,26423 Sep 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares736,126
Max PriceAU$65.20
SellAU$10,508,47123 Sep 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares146,995
Max PriceAU$65.20
SellAU$2,882,16926 Mar 19
Craig McNally
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares45,000
Max PriceAU$64.05
SellAU$3,181,93312 Mar 19
Bruce Soden
EntityIndividual
Shares50,000
Max PriceAU$63.74

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Craig McNally (58yo)

    CEO, MD & Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$6.70m
  • Olivier Chretien (52yo)

    Group Chief Strategy Officer

    • Tenure: 1.5yrs
    • Compensation: AU$1.56m
  • Danny Sims

    CEO of Ramsay Australia

    • Tenure: 4.8yrs
    • Compensation: AU$3.08m
  • John Horvath

    Group Chief Medical Officer

    • Tenure: 0yrs
  • Carmel Monaghan (48yo)

    Group Chief of Staff

    • Tenure: 4.8yrs
  • Mark Page (49yo)

    Chief Executive of UK Operations

    • Tenure: 4.9yrs
  • Louis Desheng

    Executive Chairman of Ramsay Health Care China Region

    • Tenure: 0yrs
  • Andrew Wearne

    Global Chief Audit Executive

    • Tenure: 0yrs
  • Colleen Harris

    Group Chief People Officer

    • Tenure: 0yrs
  • Henrietta Rowe

    Group General Counsel & Company Secretary

    • Tenure: 0.4yrs

Board Members

  • Peter Evans (70yo)

    Non-Executive Deputy Chairman

    • Tenure: 5.5yrs
    • Compensation: AU$479.48k
  • Michael Siddle (71yo)

    Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: AU$736.02k
  • Rod McGeoch (73yo)

    Non-Executive Director

    • Tenure: 22.3yrs
    • Compensation: AU$334.76k
  • David Thodey (65yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$320.97k
  • Kerry Chishoim Roxburgh (77yo)

    Lead Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$348.45k
  • Craig McNally (58yo)

    CEO, MD & Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$6.70m
  • James McMurdo

    Non-Executive Director

    • Tenure: 0.2yrs
  • Claudia Ricarda Rita Dyckerhoff

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$205.12k
  • Catriona Deans

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$191.32k

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$14.305b
  • 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

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 PREF (CARES)AUAUDMay 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 Analysis2019/11/13 10:31
End of Day Share Price2019/11/13 00:00
Earnings2019/06/30
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.