Ramsay Health Care (RHC)

Hi Tony,

Private hospital operator RHC has been in the MM Hitlist after we reviewed the stock in detail earlier this month.  However, the numbers aren’t overly exciting for this ~$9bn business and its definitely a stock we only want to consider when its friendless:

• RHC is expected to make around $290m net profit in FY25, very low considering its valuation.
• The potential sale of a portion of its stake in French “problem” Ramsay Santé would help deal with its significant debt issue.

However, the stock has rallied since late June on P/E expansion as opposed to earnings upgrades, as the divestment slowly gets factored into the share price, hence we aren’t keen to chase the stock up towards $39-40.

• The risk/reward towards RHC has deteriorated ~$39 and we may even remove it from our Hitlist. With upside feeling limited unless it can deal with (sell) its French investment in Ramsay Santé, no reason on its own to buy RHC. We prefer HCA Healthcare (HCA US) in the US after it’s pulled back recently.

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Ramsay Health Care (RHC)

LAST UPDATED 31/07/2025 15:17

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Ramsay Health Care (RHC)

LAST UPDATED 31/07/2025 15:17