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Ryman Healthcare
(RYM)
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Rating:56Neutral
Price Target:
$2.00
▼(-3.85% Downside)
Action:N/A
Date:10/05/26
The score is supported primarily by improving cash generation and constructive earnings-call guidance around cost-out, balance-sheet strengthening, and disciplined development spending. Offsetting this are weak and volatile profitability (recent large losses) and bearish technical signals with the stock trading below major moving averages; valuation is also constrained by loss-making results (negative P/E) and no provided dividend yield.
Positive Factors
Strong cash generation
The return to positive free cash flow provides internally generated funding for debt reduction, essential investment and future distributions. Because it was supported by stronger sales, lower development spending and land divestments, it marks meaningful progress in financial resilience rather than merely accounting improvement.
Negative Factors
Persistent profitability weakness
Revenue growth has not yet translated into dependable profits, leaving returns on capital weak and making future performance more sensitive to execution. Sustained operating losses can constrain reinvestment and shareholder distributions, even while reported cash flow remains positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
The return to positive free cash flow provides internally generated funding for debt reduction, essential investment and future distributions. Because it was supported by stronger sales, lower development spending and land divestments, it marks meaningful progress in financial resilience rather than merely accounting improvement.
Read all positive factors
Ryman Healthcare (RYM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.83B
Dividend Yield3.15%
Average Volume (3M)2.55M
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth11.86%
EPS Growth72.99%
CountryNZ
Employees7,800
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.16
Shares Outstanding1,015,745,360
10 Day Avg. Volume3,899,934
30 Day Avg. Volume2,545,489
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.53
Price to Sales (P/S)2.70
P/FCF Ratio7.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.18Price Target Upside52.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.07
Revenue Forecast (FY)$934.37M
Ryman Healthcare Business Overview & Revenue Model
Company Description
Ryman Healthcare Limited, established in Christchurch, New Zealand, in 1984, specializes in the development, ownership, and management of all-encompassing retirement communities for seniors. Operating across both New Zealand and Australia, the com...
How the Company Makes Money
Ryman makes money primarily through its integrated retirement village and aged-care model. A core revenue stream comes from selling occupation rights to residents (commonly structured as an occupation right agreement rather than a freehold sale), ...
Ryman Healthcare Earnings Call Summary
Earnings Call Date:May 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call reported clear operational progress: doubled operating EBITDAF, strong aged-care performance (EBITDAF per bed +31%), significant cost savings ($57m), positive free cash flow of $188m, reduced development exposure and a strengthened balance sheet (refinancing, lower interest costs). Management acknowledges remaining challenges — resale stock and margins, timing of DMF cash benefits, one-off transformation costs, FX effects and regional market competitiveness — and provided targets and actions (sales/marketing investment, land divestments, product changes, and a $150m CFEO improvement target to FY'29). Overall the positives — particularly cash generation, cost-out, and aged care momentum — materially outweigh the current lowlights, supporting a constructive outlook while risks from market conditions and timing remain.Positive Updates
Positive Free Cash Flow
Delivered positive free cash flow of $188 million in FY'26 — the first positive free cash flow in over a decade — driven by robust new sales, moderating development spend and land-bank divestments.
Negative Updates
Resale Margin Moderation and Bought-Back Stock
Resale margin moderated (20.3% in H1 to 19.9% FY'26) amid lower house price inflation; net resale cash flow softer due to a $53 million increase in bought-back stock and lower resale margins, increasing short-term cash drag.
Read all updates
Q4-2026 Updates
Positive
Negative
Positive Free Cash Flow
Delivered positive free cash flow of $188 million in FY'26 — the first positive free cash flow in over a decade — driven by robust new sales, moderating development spend and land-bank divestments.
Read all positive updates
Company Guidance
Ryman’s guidance emphasizes cash generation, disciplined development and growing care earnings: management is targeting to lift retirement‑living resales to match turnover by end FY'27, expects lower FY'27 build and CapEx with only 2 active construction sites and ~50% of FY'27 development CapEx already locked (committed cost‑to‑go on main buildings ~$190m), and is prioritising care where EBITDAF per bed is targeted at $25,000–$30,000 by FY'29 (H2 FY'26 was $20,200/bed; FY'26 country run‑rates were NZD15,000 in NZ and ~NZD32,000 in AU). Medium‑term financial targets remain a $150m improvement in sustainable CFEO by FY'29 (already $47m achieved in year one) and a $500m cash‑release program (FY'26 delivered $169m, with a further $75m locked in and $147m of land sales contracted — $72m cash received to date; management has raised the land‑divestment ambition to ~ $250m), plus targets to reduce normalized non‑village costs to < $100m by FY'29. Balance‑sheet guidance: FY'26 free cash flow was $188m, net debt $1.57bn with $675m facility headroom, gearing <28%, and average cost of debt ~5.9% (annualized gross interest down $68m since Feb‑2025).Ryman Healthcare Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 798.49M | 713.80M | 650.53M | 560.11M | 503.76M |
| Gross Profit | -17.76M | 713.80M | -1.35M | -19.77M | 1.82M |
| EBITDA | 24.79M | -27.16M | -50.73M | 264.80M | 788.44M |
| Net Income | -171.34M | -436.83M | 4.78M | 257.84M | 692.87M |
Balance Sheet | |||||
| Total Assets | 12.27B | 12.06B | 13.08B | 12.51B | 10.97B |
| Cash, Cash Equivalents and Short-Term Investments | 9.70M | 17.66M | 41.81M | 27.88M | 28.31M |
| Total Debt | 1.59B | 1.70B | 2.57B | 2.34B | 2.59B |
| Total Liabilities | 8.19B | 7.80B | 8.67B | 7.85B | 7.53B |
| Stockholders Equity | 4.08B | 4.26B | 4.42B | 4.66B | 3.43B |
Cash Flow | |||||
| Free Cash Flow | 272.38M | 302.89M | 486.28M | 218.55M | 237.34M |
| Operating Cash Flow | 319.68M | 410.25M | 658.48M | 542.76M | 535.97M |
| Investing Cash Flow | -133.32M | -525.58M | -842.05M | -1.04B | -787.31M |
| Financing Cash Flow | -194.50M | 91.18M | 197.50M | 388.60M | 209.47M |
Ryman Healthcare Technical Analysis
Negative
2.08
Price Trends
2.04
Negative
2.13
Negative
2.31
Negative
Market Momentum
-0.06
Positive
28.98
Positive
6.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:RYM, the sentiment is Negative. The current price of 2.08 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 2.04, and below the 200-day MA of 2.31, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 28.98 is Positive, neither overbought nor oversold. The STOCH value of 6.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:RYM.
Ryman Healthcare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $45.49M | 16.07 | ― | 3.60% | 17.86% | 20.79% | |
66 Neutral | $1.76B | 5.65 | 8.89% | 2.43% | 14.09% | -18.30% | |
63 Neutral | $34.15M | 0.03 | ― | ― | 29.55% | -11.97% | |
56 Neutral | $1.83B | -10.88 | -4.17% | 3.15% | 11.86% | 72.99% | |
56 Neutral | $114.80M | 12.16 | ― | 4.23% | 14.16% | 34.82% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $514.20M | 3,525.00 | 0.02% | 4.16% | 2.52% | -99.52% |
* Healthcare Sector Average
NZ:RYM
Ryman Healthcare
1.80
-1.09
-37.67%
NZ:OCA
Oceania Healthcare
0.70
-0.02
-2.78%
NZ:SUM
Summerset Group Holdings Limited
7.04
-4.01
-36.26%
NZ:PHL
Promisia Healthcare Limited
0.65
0.22
50.00%
NZ:TAH
Third Age Health Services Limited
4.46
0.03
0.72%
NZ:RAD
Radius Residential Care Ltd
0.40
0.06
18.34%
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.