Ramsay Health Care Limited (RHC.AX) stock analysis

In our weekly check, Ramsay Health Care Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5.

About Ramsay Health Care Limited

Ramsay Health Care Limited is a Healthcare company (Medical - Care Facilities) based in Australia, listed on ASX as RHC.AX.

What our checks show for RHC.AX

Red flags

• Net debt is 4.7x a year of EBITDA (debt/equity 2.22). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.2 times: a weak year could make the payments hard.
• The gross margin fell by 66.7 points, to 9.5%: costs are rising faster than prices.
• The net margin is only 1.8%: little room if costs rise.
• The stock has fallen as much as 64% from a peak. Would you have held through that?

Warning signs

• The net margin fell by 0.3 points over 5 years, to 1.8%: the company keeps less of each sale as profit.
• Analysts expect only about 4.3% a year of growth in revenue.
• Free cash flow is only 3.8% of revenue.
• The dividend takes 89% of profit: little cushion if profit falls.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 5.9%.

Strengths

• Operating cash flow is 4.38x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20.2% a year over the next years.
• Beta 0.57: the stock usually moves less than the market.
• Pay in shares is only 0% of free cash flow.

Similar companies

EHC · DVA · FMS · 4002.SR · ENSG · UHS

Questions

What grade does Ramsay Health Care Limited (RHC.AX) have?

In our weekly check, Ramsay Health Care Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RHC.AX stock?

This week's biggest flags for Ramsay Health Care Limited: High debt, Weak interest cover, Gross margin falling. In total 11 of 25 checks show a warning or a red flag.

What does Ramsay Health Care Limited do?

Ramsay Health Care Limited is a Healthcare company (Medical - Care Facilities) based in Australia, listed on ASX as RHC.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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