RHC 0.06% $47.00 ramsay health care limited

I think in summary this report gives a glimmer of hope for those...

  1. 1,064 Posts.
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    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.


 
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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
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Last trade - 16.10pm 05/07/2024 (20 minute delay) ?
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