Ramsay Health Care Limited
Ramsay Health Care Limited Fundamental Analysis
Ramsay Health Care Limited (RHC.AX) shows weak financial fundamentals with a PE ratio of 31.00, profit margin of 1.56%, and ROE of 5.75%. The company generates $18.6B in annual revenue with moderate year-over-year growth of 6.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RHC.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakRHC.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateRHC.AX shows balanced valuation metrics.
Growth Score
ModerateRHC.AX shows steady but slowing expansion.
Financial Health Score
WeakRHC.AX carries high financial risk with limited liquidity.
Profitability Score
WeakRHC.AX struggles to sustain strong margins.
Key Financial Metrics
Is RHC.AX Expensive or Cheap?
P/E Ratio
RHC.AX trades at 31.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RHC.AX's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Ramsay Health Care Limited at 1.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.88 times EBITDA. This is generally considered low.
How Well Does RHC.AX Make Money?
Net Profit Margin
For every $100 in sales, Ramsay Health Care Limited keeps $1.56 as profit after all expenses.
Operating Margin
Core operations generate 8.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.75 in profit for every $100 of shareholder equity.
ROA
Ramsay Health Care Limited generates $1.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ramsay Health Care Limited generates limited operating cash flow of $1.54B, signaling weaker underlying cash strength.
Free Cash Flow
Ramsay Health Care Limited produces free cash flow of $718.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.13 in free cash annually.
FCF Yield
RHC.AX converts 8.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How RHC.AX Stacks Against Its Sector Peers
| Metric | RHC.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.00 | 27.91 | Worse (Expensive) |
| ROE | 5.75% | 687.00% | Weak |
| Net Margin | 1.56% | -45285.00% (disorted) | Weak |
| Debt/Equity | 3.48 | 0.33 | Weak (High Leverage) |
| Current Ratio | 0.90 | 2795.76 | Weak Liquidity |
| ROA | 1.33% | -13557.00% (disorted) | Weak |
RHC.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ramsay Health Care Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-61.68%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-97.83%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-77.35%
Industry Style: Defensive, Growth, Innovation
Declining