Ramsay Health Care's (ASX:RHC) three-year decline in earnings translates into losses for shareholders

Simply Wall St.

Jan 17

While it may not be enough for some shareholders, we think it is good to see the Ramsay Health Care Limited (ASX:RHC) share price up 16% in a single quarter. But that doesn't change the fact that ...

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But that doesn't change the fact that ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/ramsay-health-cares-asxrhc-three-year-decline-in-earnings-tr\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ramsay Health Care's (ASX:RHC) three-year decline in earnings translates into losses for shareholders</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRamsay Health Care's (ASX:RHC) three-year decline in earnings translates into losses for shareholders\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-17 04:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/ramsay-health-cares-asxrhc-three-year-decline-in-earnings-tr><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>While it may not be enough for some shareholders, we think it is good to see the Ramsay Health Care Limited (ASX:RHC) share price up 16% in a single quarter.    But that doesn't change the fact that ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/ramsay-health-cares-asxrhc-three-year-decline-in-earnings-tr\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RHC.AU","symbol_name":"RAMSAY HEALTH CARE LTD","start_time":0,"source_url":"https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/ramsay-health-cares-asxrhc-three-year-decline-in-earnings-tr","article_id":"2604912704","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6033000-choice1-main-header/1585186824821"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/ramsay-health-cares-asxrhc-three-year-decline-in-earnings-tr","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2604912704","pubTimestamp":1768596057,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"While it may not be enough for some shareholders, we think it is good to see the Ramsay Health Care Limited ( ASX:RHC...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"RHC.AU":"RAMSAY HEALTH CARE LTD"},"translate_title":"Ramsay Health Care(ASX：RHC)盈利三年下降转化为股东损失","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RHC.AU":1.5},"content_text":"While it may not be enough for some shareholders, we think it is good to see the Ramsay Health Care Limited (ASX:RHC) share price up 16% in a single quarter.    But that doesn't change the fact that the returns over the last three years have been less than pleasing.  In fact, the share price is down 45% in the last three years, falling well short of the market return.      While the last three years has been tough for Ramsay Health Care shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.  We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.  There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance.  One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).   Ramsay Health Care saw its EPS decline at a compound rate of 70% per year, over the last three years.   In comparison the 18% compound annual share price decline isn't as bad as the EPS drop-off.  So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.   With a P/E ratio of 1.24k, it's fair to say the market sees a brighter future for the business.    The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). ASX:RHC Earnings Per Share Growth January 16th 2026 This free interactive report on Ramsay Health Care's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.   AdvertisementWhat About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock.  The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested.  Arguably, the TSR gives a more comprehensive picture of the return generated by a stock.  In the case of Ramsay Health Care, it has a TSR of -42% for the last 3 years. That exceeds its share price return that we previously mentioned.  And there's no prize for guessing that the dividend payments largely explain the divergence!  A Different Perspective Ramsay Health Care shareholders have received returns of 9.9% over twelve months (even including dividends), which isn't far from the general market return.    The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 6% over the last five years.  While 'turnarounds seldom turn' there are green shoots for Ramsay Health Care.        I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too.   Consider for instance, the ever-present spectre of investment risk.   We've identified 3 warning signs  with Ramsay Health Care (at least 1 which is concerning)  , and understanding them should be part of your investment process.    But note: Ramsay Health Care may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-2","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}