# Ramsay Health Care (RHC.AU)

Canonical: https://gigainvestors.com/s/RHC.AU

Analysis as of: 2026-10-16T07:36:10.634Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 54.88 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.46×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.06×

- FY2021: 0.02×

- FY2022: 0.02×

- FY2023: 0.04×

- FY2024: 0.06×

- FY2025: 0.12×

- FY2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 34.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.8%

- ROIC, second-lowest year: 2.5%

- Typical minus recent gross margin: 34.8 pp

- Typical gross margin (annual median): 44.3%

- Recent gross margin (lower of latest and 3-year median): 9.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.9%

- ROIC including acquisitions, ten-year median: -1.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 18.7%

- FY2018: 13.8%

- FY2019: 19.1%

- FY2020: 5.7%

- FY2021: 1.9%

- FY2022: 2.5%

- FY2023: 4.5%

- FY2024: 6.8%

- FY2025: 13.2%

- FY2026: 6.8%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -0.35×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -639M

- Net income, five-year total: AUD 1.8B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.6 pp

- Working capital / revenue, final three-year average: 7.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: -1.31×

- FY2023: -2.10×

- FY2024: 0.05×

- FY2025: -19.88×

- FY2026: 2.36×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.7% vs 6.8%

- Per-share earnings: 2.16 to 1.43 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.3%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: AUD -4.8B

- Cumulative retained earnings: AUD 1.1B

- Diluted shares, 10-year annual growth: 1.3%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -5.1%

- Per-share value change: AUD -0.73

- Per-share value, starting three-year median: AUD 2.16

- Per-share value, ending three-year median: AUD 1.43

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 4.4B

- Cumulative net income, 10 years: AUD 4.0B

- ROIC, first three-year median: 18.7%

- ROIC, last three-year median: 6.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 2.41

- FY2018: AUD 1.86

- FY2019: AUD 2.70

- FY2020: AUD 1.24

- FY2021: AUD 1.97

- FY2022: AUD 1.20

- FY2023: AUD 1.30

- FY2024: AUD 3.87

- FY2025: AUD 0.10

- FY2026: AUD 1.43

### accounting: pass

- Sloan accruals: -5.3%

- Receivables to sales index (DSRI): 0.87×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.38×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.21×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.7%

- FY2018: -6.6%

- FY2019: -2.9%

- FY2020: -7.7%

- FY2021: -5.3%

- FY2022: -2.3%

- FY2023: -4.7%

- FY2024: -1.9%

- FY2025: -6.5%

- FY2026: -5.3%

## Holders

## Price story

Down 32% since Apr 2022 · sales +4.4%

Story as of 2026-10-16T10:00:07.027Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +4.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 8.7B 

- FY2018: AUD 9.1B 

- FY2019: AUD 12B 

- FY2020: AUD 12B 

- FY2021: AUD 13B 

- FY2022: AUD 13B 

- FY2023: AUD 15B 

- FY2024: AUD 17B 

- FY2025: AUD 18B 

- FY2026: AUD 19B 

### Gross margin · FY2026

gross margin 9.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 76.9% 

- FY2018: 76.7% 

- FY2019: 77.5% 

- FY2020: 77.2% 

- FY2021: 12.4% 

- FY2022: 76.2% 

- FY2023: 8.5% 

- FY2024: 9.7% 

- FY2025: 11.9% 

- FY2026: 9.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical care facilities; annual sales are AUD 18.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2026: revenue 18577800000; grossProfit 1772400000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 9.5% to 11.9% during 2024–26; it earns 6.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2024: grossProfit / revenue = 9.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2025: grossProfit / revenue = 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2026: grossProfit / revenue = 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); 10-year return on capital observations [[2017,0.18707136938918664],[2018,0.1381397298241306],[2019,0.1911883842576088],[2020,0.057247028834521325],[2021,0.019250981355895147],[2022,0.025081619480909888],[2023,0.044963371607856135],[2024,0.0680287064057203],[2025,0.1322712229789378],[2026,0.06837956340568443]]; median 0.06820413490570237. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2017: growth capex 9007950.499634683; upkeep 421447049.5003653; owner earnings 441435950.4996347. Growth capex / owner earnings = 0.020406019241158604.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2018: growth capex 81839000; upkeep 392002000; owner earnings 376022000. Growth capex / owner earnings = 0.21764418039370037.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2019: growth capex 108193000; upkeep 485600000; owner earnings 475231200. Growth capex / owner earnings = 0.22766392442247058.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2024: growth capex 0; upkeep 753800000; owner earnings 46180000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); FY2026: growth capex 0; upkeep 734200000; owner earnings 776200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); Dividend observations: [[2017,272403000],[2018,305666000],[2019,321350000],[2020,335100000],[2021,125100000],[2022,371000000],[2023,236800000],[2024,158300000],[2025,161600000],[2026,205700000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 18% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RHC.AU SharesStats.PercentInsiders = 18.014 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.634Z); Closing price 54.88 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 80.45751011251527; price multiple 0.6820991592115321. FY2026 cash earnings/share 3.3615992932066416. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 73.36 per share

- 2016-11: AUD 70.81 per share

- 2016-12: AUD 68.30 per share

- 2017-01: AUD 66.80 per share

- 2017-02: AUD 69.78 per share

- 2017-03: AUD 69.89 per share

- 2017-04: AUD 71.70 per share

- 2017-05: AUD 68.93 per share

- 2017-06: AUD 73.60 per share

- 2017-07: AUD 70.58 per share

- 2017-08: AUD 68.31 per share

- 2017-09: AUD 62.28 per share

- 2017-10: AUD 66.91 per share

- 2017-11: AUD 69.78 per share

- 2017-12: AUD 70.12 per share

- 2018-01: AUD 68.35 per share

- 2018-02: AUD 63.90 per share

- 2018-03: AUD 62.32 per share

- 2018-04: AUD 64.69 per share

- 2018-05: AUD 61.33 per share

- 2018-06: AUD 53.98 per share

- 2018-07: AUD 56.24 per share

- 2018-08: AUD 55.70 per share

- 2018-09: AUD 54.93 per share

- 2018-10: AUD 56.22 per share

- 2018-11: AUD 54.22 per share

- 2018-12: AUD 57.73 per share

- 2019-01: AUD 56.72 per share

- 2019-02: AUD 64.78 per share

- 2019-03: AUD 64.35 per share

- 2019-04: AUD 65.32 per share

- 2019-05: AUD 69.83 per share

- 2019-06: AUD 72.24 per share

- 2019-07: AUD 72.78 per share

- 2019-08: AUD 65.64 per share

- 2019-09: AUD 64.87 per share

- 2019-10: AUD 68.49 per share

- 2019-11: AUD 72.98 per share

- 2019-12: AUD 72.53 per share

- 2020-01: AUD 79.20 per share

- 2020-02: AUD 68.01 per share

- 2020-03: AUD 57.28 per share

- 2020-04: AUD 62.61 per share

- 2020-05: AUD 70.05 per share

- 2020-06: AUD 66.52 per share

- 2020-07: AUD 61.98 per share

- 2020-08: AUD 65.06 per share

- 2020-09: AUD 66.08 per share

- 2020-10: AUD 62.35 per share

- 2020-11: AUD 63.05 per share

- 2020-12: AUD 62.18 per share

- 2021-01: AUD 62.97 per share

- 2021-02: AUD 66.00 per share

- 2021-03: AUD 67.00 per share

- 2021-04: AUD 67.32 per share

- 2021-05: AUD 63.50 per share

- 2021-06: AUD 62.95 per share

- 2021-07: AUD 64.14 per share

- 2021-08: AUD 68.90 per share

- 2021-09: AUD 69.62 per share

- 2021-10: AUD 70.42 per share

- 2021-11: AUD 66.82 per share

- 2021-12: AUD 71.50 per share

- 2022-01: AUD 62.79 per share

- 2022-02: AUD 63.97 per share

- 2022-03: AUD 65.15 per share

- 2022-04: AUD 81.11 per share

- 2022-05: AUD 78.17 per share

- 2022-06: AUD 73.24 per share

- 2022-07: AUD 70.20 per share

- 2022-08: AUD 71.71 per share

- 2022-09: AUD 57.28 per share

- 2022-10: AUD 58.57 per share

- 2022-11: AUD 65.81 per share

- 2022-12: AUD 64.70 per share

- 2023-01: AUD 66.62 per share

- 2023-02: AUD 67.55 per share

- 2023-03: AUD 66.54 per share

- 2023-04: AUD 64.67 per share

- 2023-05: AUD 57.37 per share

- 2023-06: AUD 56.29 per share

- 2023-07: AUD 58.91 per share

- 2023-08: AUD 51.45 per share

- 2023-09: AUD 51.87 per share

- 2023-10: AUD 48.68 per share

- 2023-11: AUD 49.16 per share

- 2023-12: AUD 52.61 per share

- 2024-01: AUD 51.23 per share

- 2024-02: AUD 54.91 per share

- 2024-03: AUD 56.51 per share

- 2024-04: AUD 52.25 per share

- 2024-05: AUD 47.11 per share

- 2024-06: AUD 47.46 per share

- 2024-07: AUD 46.47 per share

- 2024-08: AUD 41.55 per share

- 2024-09: AUD 41.62 per share

- 2024-10: AUD 40.17 per share

- 2024-11: AUD 39.59 per share

- 2024-12: AUD 34.54 per share

- 2025-01: AUD 33.74 per share

- 2025-02: AUD 34.40 per share

- 2025-03: AUD 34.13 per share

- 2025-04: AUD 33.26 per share

- 2025-05: AUD 38.30 per share

- 2025-06: AUD 36.69 per share

- 2025-07: AUD 38.77 per share

- 2025-08: AUD 33.90 per share

- 2025-09: AUD 31.73 per share

- 2025-10: AUD 32.10 per share

- 2025-11: AUD 36.81 per share

- 2025-12: AUD 34.36 per share

- 2026-01: AUD 36.36 per share

- 2026-02: AUD 43.07 per share

- 2026-03: AUD 39.01 per share

- 2026-04: AUD 38.98 per share

- 2026-05: AUD 37.09 per share

- 2026-06: AUD 43.98 per share

- 2026-07: AUD 44.34 per share

- 2026-08: AUD 51.28 per share

- 2026-09: AUD 55.68 per share

- 2026-10: AUD 54.86 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 30.83 per share, central AUD 43.52 per share, high AUD 50.91 per share

- FY2018: low AUD 34.10 per share, central AUD 47.46 per share, high AUD 55.25 per share

- FY2019: low AUD 41.73 per share, central AUD 58.53 per share, high AUD 68.30 per share

- FY2020: low AUD 33.74 per share, central AUD 44.22 per share, high AUD 50.89 per share

- FY2021: low AUD 28.63 per share, central AUD 32.13 per share, high AUD 36.79 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.