I think in summary this report gives a glimmer of hope for those that remember the old Ramsey. The topline growth is significant enough that if the cost base can be reduced even a few % the bottom line would look significantly better. That's probably the sole reason for the slight exuberance today in the SP
Employee Benefit and contractor costs used to be around 53.5% of Revenue and now are 58% in this current half down from 59.5% in the pcp. Whether these can be lowered more is a key decision that needs to be made for the investment case. With 8 billion in Revenue another 2 or 3% reduction starts making the bottom line a bit more respectable.
Finance cost is another issue running at close to 4% of Revenue with a average cost of debt now at 4.88%. This is obviously a stock that would also benefit from a fall in interest rates. Failing that I would expect the finance cost to creep higher still as maturities roll over.
I don't like the European business as all. Its been a fantastic waste of shareholder value. I am not sure what will ever change to make it look like a wise strategy to have pursued. Compare the maintenance capex on the European business with what its actually generating in operating cash flow.
Remember KKR offered $88 a share not too long ago. To do this they probably thought they saw $115+ in value.
I imagine they would be receiving all kinds of approaches on how they can unlock shareholder value.
I can't say i am hugely excited by this business but I like some Healthcare holding for portfolio balance and I am not seeing other ASX Healthcare stocks that excite me hugely either at current valuations.
- Forums
- ASX - By Stock
- Ann: 2024 Half Year Results Presentation
I think in summary this report gives a glimmer of hope for those...
-
- There are more pages in this discussion • 3 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add RHC (ASX) to my watchlist
|
|||||
Last
$47.00 |
Change
-0.030(0.06%) |
Mkt cap ! $10.79B |
Open | High | Low | Value | Volume |
$46.77 | $47.15 | $46.57 | $11.00M | 234.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 397 | $47.00 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$47.01 | 116 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 235 | 47.000 |
1 | 1214 | 46.950 |
2 | 475 | 46.940 |
2 | 1214 | 46.910 |
1 | 2329 | 46.890 |
Price($) | Vol. | No. |
---|---|---|
47.150 | 1214 | 1 |
47.180 | 475 | 2 |
47.190 | 1214 | 1 |
47.200 | 182 | 1 |
47.220 | 1214 | 1 |
Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
Featured News
RHC (ASX) Chart |