OTCPK:RMSY.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.

Risks

  • Ramsay Health Care has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-15.1%

RMSY.F

-0.04%

US Healthcare

-0.6%

US Market


1 Year Return

-1.6%

RMSY.F

-9.1%

US Healthcare

0.7%

US Market

RMSY.F outperformed the Healthcare industry which returned -9.1% over the past year.

RMSY.F underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

RMSY.FIndustryMarket
7 Day-15.1%-0.04%-0.6%
30 Day-17.0%1.0%2.9%
90 Dayn/a-1.5%1.3%
1 Year-1.6%-1.6%-7.7%-9.1%2.9%0.7%
3 Year-33.2%-33.2%29.6%24.3%44.6%35.2%
5 Year-13.5%-13.5%66.1%56.2%61.9%44.2%

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

No news available

Valuation

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

24.19x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ramsay Health Care's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ramsay Health Care's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ramsay Health Care is overvalued based on earnings compared to the US Healthcare industry average.

Ramsay Health Care is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ramsay Health Care is poor value based on expected growth next year.


Price Based on Value of Assets

Ramsay Health Care is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Ramsay Health Care expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ramsay Health Care's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Ramsay Health Care's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

Ramsay Health Care's revenue growth is positive but not above the United States of America market average.

Ramsay Health Care's earnings growth is positive but not above the United States of America market average.

Ramsay Health Care's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ramsay Health Care is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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


Past Earnings Growth Analysis

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 exceeds its 5-year average (41.7% vs 6.8%)

Ramsay Health Care's earnings growth has exceeded the US Healthcare industry average in the past year (41.7% vs 5.6%).


Return on Equity

Ramsay Health Care has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ramsay Health Care used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Ramsay Health Care's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ramsay Health Care's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Ramsay Health Care's level of debt (175.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (79.4% vs 175.5% today).

Debt is not well covered by operating cash flow (17%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ramsay Health Care's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Ramsay Health Care's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


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?

3.4yrs

Average management tenure


CEO

Craig McNally (58yo)

2.2yrs

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

Craig's remuneration is lower than average for companies of similar size in United States of America.

Craig's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.4yrs

Average Tenure

50.5yo

Average Age

The tenure for the Ramsay Health Care management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

70.5yo

Average Age

The tenure for the Ramsay Health Care board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$2,048,59526 Mar 19
Craig McNally
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares45,000
Max PriceAU$45.52
SellAU$2,243,80012 Mar 19
Bruce Soden
EntityIndividual
Shares50,000
Max PriceAU$44.95

Ownership Breakdown


Management Team

  • Craig McNally (58yo)

    CEO, MD & Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$6.70m
  • Olivier Chretien (52yo)

    Group Chief Strategy Officer

    • Tenure: 1.3yrs
    • Compensation: AU$1.56m
  • Danny Sims

    CEO of Ramsay Australia

    • Tenure: 4.7yrs
    • Compensation: AU$3.08m
  • John Horvath

    Group Chief Medical Officer

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

    Group Chief of Staff

    • Tenure: 4.7yrs
  • Mark Page (49yo)

    Chief Executive of UK Operations

    • Tenure: 4.8yrs
  • 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: 0.3yrs

Board Members

  • Peter Evans (70yo)

    Non-Executive Deputy Chairman

    • Tenure: 5.3yrs
    • Compensation: AU$479.48k
  • Michael Siddle (71yo)

    Non-Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: AU$736.02k
  • Rod McGeoch (73yo)

    Non-Executive Director

    • Tenure: 22.2yrs
    • Compensation: AU$334.76k
  • David Thodey (65yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$320.97k
  • Kerry Chishoim Roxburgh (77yo)

    Lead Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$348.45k
  • Craig McNally (58yo)

    CEO, MD & Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$6.70m
  • James McMurdo

    Non-Executive Director

    • Tenure: 0yrs
  • Claudia Ricarda Rita Dyckerhoff

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: AU$205.12k
  • Alison Deans

    Non-Executive Director

    • Tenure: 0.8yrs
    • 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: RMSY.F
  • Exchange: OTCPK
  • Founded: 1964
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$12.867b
  • Listing Market Cap: AU$8.712b
  • 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 Analysis2019/09/21 23:58
End of Day Share Price2019/09/16 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.