Want to see AU:RHC full AI Analyst Report?
Top Page
Ramsay Health Care
(Sydney:RHC)
Select Model
Select Model
Rating:58Neutral
Price Target:
AU$52.00
▲(17.22% Upside)
Action:Reiterated
Date:08/28/26
The score is primarily held back by average financial quality (earnings volatility and leverage constraints) and a demanding valuation (high P/E with modest yield). These are partly offset by strong technical momentum and a generally positive FY27 outlook from the earnings call, though cost, funding, and interest-rate headwinds remain meaningful.
Positive Factors
Australian operating momentum
Australia is the group's strongest operating engine, combining revenue growth, higher surgical volumes, improved theatre utilisation and margin expansion. Sustained demand for private hospital procedures should support earnings and reinforce the value of RHC's domestic network.
Negative Factors
High leverage and balance-sheet constraints
Elevated leverage limits financial flexibility and increases sensitivity to interest costs, refinancing conditions and operating setbacks. Ramsay Sante's higher debt burden adds concentration risk until cash flow improves or the proposed demerger reduces group exposure.
Read all positive and negative factors
Positive Factors
Negative Factors
Australian operating momentum
Australia is the group's strongest operating engine, combining revenue growth, higher surgical volumes, improved theatre utilisation and margin expansion. Sustained demand for private hospital procedures should support earnings and reinforce the value of RHC's domestic network.
Read all positive factors
Ramsay Health Care (RHC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$10.11B
Dividend Yield1.74%
Average Volume (3M)804.76K
Price to Earnings (P/E)37.7
Beta (1Y)1.04
Revenue Growth4.36%
EPS Growth4798.56%
CountryAU
Employees92,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.36
Shares Outstanding230,829,800
10 Day Avg. Volume739,925
30 Day Avg. Volume804,756
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.04
Price to Sales (P/S)0.54
P/FCF Ratio14.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$48.54Price Target Upside9.41% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)1.74
Revenue Forecast (FY)AU$19.27B
Ramsay Health Care Business Overview & Revenue Model
Company Description
Ramsay Health Care Limited is a prominent healthcare provider that manages and possesses hospitals. The company delivers medical services to both publicly funded and privately insured individuals. It maintains a substantial international presence,...
How the Company Makes Money
RHC primarily makes money by delivering hospital-based healthcare services and being paid for patient episodes of care. The core revenue stream is hospital revenue generated from inpatient admissions and day surgery (including elective and acute p...
Ramsay Health Care Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Positive
The call presents strong operational and financial momentum driven by Australian transformation initiatives and Funding Group improvements — evidenced by double-digit underlying EBIT growth in Australia, broad regional EBIT growth, improved margins and cash generation, higher dividends, and successful cost and utilization measures. Offsetting these positives are notable challenges in Europe (Ramsay Santé funding headwinds and working capital/timing issues), restructure costs and demand weakness at Elysium, wage inflation pressures from multi-year EBAs, a remediation provision relating to a Fair Work decision, and increased interest costs. On balance the company demonstrates tangible progress on its strategic priorities and financial discipline while managing several region-specific headwinds.Positive Updates
Group Revenue and Profit Growth
Total revenue of $18.6 billion, up 4.2% year-over-year in constant currency; underlying EBIT increased 11.8% and underlying NPAT increased 22.9%; reported NPAT was $329 million.
Negative Updates
Ramsay Santé Funding and Working Capital Headwinds
Ramsay Santé faced a difficult funding environment in France leading to a reduced underlying loss in Europe; negative working capital variance driven by timing of payments from the French government; bank leverage at Ramsay Santé 4.7x at 30 June and business remains loss-making at group level.
Read all updates
Q4-2026 Updates
Positive
Negative
Group Revenue and Profit Growth
Total revenue of $18.6 billion, up 4.2% year-over-year in constant currency; underlying EBIT increased 11.8% and underlying NPAT increased 22.9%; reported NPAT was $329 million.
Read all positive updates
Company Guidance
The company guided to continued EBIT growth across Australia and the U.K. in FY‑27, with Australia targeting incremental year‑on‑year EBIT growth (both including and excluding the $251m National Capital acquisition) and margin expansion while investing an incremental $10–15m of IT/technology OpEx; NatCap is expected to be EPS‑accretive in year one with transition operating costs of $9–11m and Australia CapEx of $380–410m (inclusive of NatCap) and 11 new theatres/cath labs planned. At the Funding Group level FY‑27 CapEx is guided to $480–520m, total net interest costs (including AASB‑16) to $280–300m with a weighted average cost of debt of ~5.5% and ~60% of debt hedged, and leverage (1.83x at June 30) expected to remain below the 2.5x target range post‑acquisition (interest cover 8.94x); management also confirmed continued focus on cash generation, ROCE improvement and that Ramsay Santé separation remains on track for late‑2026 (shareholder vote 24 Nov) with an Investor Day on 30 Nov.Ramsay Health Care Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
44
Neutral
Cash Flow
62
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.58B | 17.79B | 16.66B | 14.96B | 13.08B |
| Gross Profit | 1.77B | 2.12B | 1.61B | 1.27B | 9.97B |
| EBITDA | 2.20B | 1.59B | 1.81B | 1.78B | 1.61B |
| Net Income | 329.20M | 24.00M | 888.70M | 298.10M | 274.00M |
Balance Sheet | |||||
| Total Assets | 21.17B | 22.48B | 20.89B | 21.03B | 19.47B |
| Cash, Cash Equivalents and Short-Term Investments | 729.90M | 785.60M | 662.30M | 656.10M | 314.20M |
| Total Debt | 11.00B | 12.16B | 10.94B | 11.89B | 10.70B |
| Total Liabilities | 15.58B | 16.77B | 15.37B | 16.21B | 14.95B |
| Stockholders Equity | 4.96B | 5.02B | 4.90B | 4.15B | 3.93B |
Cash Flow | |||||
| Free Cash Flow | 707.90M | 704.20M | 539.00M | 558.70M | 7.00M |
| Operating Cash Flow | 1.44B | 1.48B | 1.29B | 1.28B | 715.50M |
| Investing Cash Flow | -675.00M | -765.30M | 159.70M | -713.80M | 30.00M |
| Financing Cash Flow | -789.00M | -631.20M | -1.45B | -242.40M | -1.41B |
Ramsay Health Care Technical Analysis
Positive
44.36
Price Trends
43.58
Positive
40.99
Positive
38.91
Positive
Market Momentum
0.79
Negative
78.68
Negative
41.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHC, the sentiment is Positive. The current price of 44.36 is below the 20-day moving average (MA) of 44.80, above the 50-day MA of 43.58, and above the 200-day MA of 38.91, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 78.68 is Negative, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RHC.
Ramsay Health Care Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | AU$9.91B | 16.46 | 7.20% | 4.99% | 15.53% | 15.11% | |
60 Neutral | AU$868.75M | 39.29 | 3.24% | 3.51% | 25.73% | 390.83% | |
58 Neutral | AU$10.11B | 37.74 | 5.75% | 2.06% | 4.36% | 4798.56% | |
57 Neutral | AU$308.63M | -0.78 | -114.08% | ― | 2.16% | 21.04% | |
54 Neutral | AU$533.44M | 22.98 | 15.80% | 5.42% | -0.90% | -25.09% | |
53 Neutral | AU$1.85B | 33.32 | -162.99% | 2.76% | 16.55% | 13.42% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
AU:RHC
Ramsay Health Care
50.06
16.69
50.02%
AU:HLS
Healius Limited
0.44
-0.48
-52.20%
AU:REG
Regis Healthcare Ltd.
6.15
-1.47
-19.26%
AU:SHL
Sonic Healthcare Limited
20.10
-2.72
-11.93%
AU:IDX
Integral Diagnostics Ltd.
2.33
-0.53
-18.53%
AU:ACL
Australian Clinical Labs Ltd
2.82
0.16
5.86%
Ramsay Health Care Corporate Events
Ramsay Health Care Declares Interim Dividend of AUD 0.485 per Share
Aug 26, 2026
Ramsay Health Care Limited has declared a fully paid ordinary dividend of AUD 0.485 per share for the six-month period ended 30 June 2026. The distribution will be made to shareholders on 24 September 2026, with the ex-dividend date set for 3 Sept...
Ramsay Health Care Issues FY26 Results Overview With Risk Caveats
Aug 26, 2026
Ramsay Health Care has released a summary FY26 results presentation outlining background information on the Ramsay Group’s business, financial position and strategies as at 27 August 2026. The document is positioned as general information to...
Ramsay Health Care lifts earnings and cash flow as Australian and UK operations strengthen
Aug 26, 2026
Ramsay Health Care reported a sharp rebound in profitability for the year to 30 June 2026, with underlying NPAT up 23% on a constant currency basis and all regions delivering EBIT growth. The Australian hospital business led the improvement, posti...
Ramsay Health Care releases FY26 results and investor presentation
Aug 26, 2026
Ramsay Health Care has released its preliminary final report for the 12 months to 30 June 2026, including its Appendix 4E and full-year FY26 results, alongside an investor presentation. The company is hosting a webcast presentation of the results ...
Ramsay Health Care Announces Retirement of Non-Executive Director
Aug 25, 2026
Ramsay Health Care has announced that Non-Executive Director Dr Claudia Süssmuth Dyckerhoff will retire from the board on 31 August 2026, ending an eight-year tenure during which she served on the Risk Management Committee. Chair David Thodey...
Ramsay Santé Secures €1.75bn Refinancing Ahead of Free Float Expansion
Jul 22, 2026
Ramsay Santé has closed a €1.75 billion senior debt refinancing, comprising a €1.55 billion Term Loan B and a €200 million revolving credit facility, priced at E+350bps and anchored by new and existing lenders. The transacti...
Ramsay Health Care Reports Lapse of Performance Rights, Trimming Future Equity Dilution
Jul 6, 2026
Ramsay Health Care Limited has disclosed the cessation of several tranches of performance rights, identified under ASX code RHCAB, following the lapse of conditional rights that could not be satisfied. The affected rights, totaling tens of thousan...
United Super exits substantial holding in Ramsay Health Care
Jul 3, 2026
Ramsay Health Care has disclosed that United Super Pty Ltd has ceased to be a substantial shareholder in the company as of 29 June 2026. The change was detailed in a regulatory notice lodged under the Corporations Act, indicating that United Super...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.