Can Ramsay Health Care Limited's (ASX:RHC) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?

Simply Wall St.

Feb 07

Ramsay Health Care's (ASX:RHC) stock is up by a considerable 16% over the past three months. We, however wanted to have a closer look at its key financial indicators as the markets usually pay for ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2609546980"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2609546980\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2609546980?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/6033000-choice1-main-header/1585186824821","is_english":true,"pubTime":"2026-02-07 06:22","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2609546980","market":"us","top_or_hot":-1,"title":"Can Ramsay Health Care Limited's (ASX:RHC) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?","media":"Simply Wall St.","content":"<div>\n<p>Ramsay Health Care's (ASX:RHC) stock is up by a considerable 16% over the past three months.   We, however wanted to have a closer look at its key financial indicators as the markets usually pay for ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/can-ramsay-health-care-limiteds-asxrhc-weak-financials-pull\">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>Can Ramsay Health Care Limited's (ASX:RHC) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?</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\">\nCan Ramsay Health Care Limited's (ASX:RHC) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-07 06:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/can-ramsay-health-care-limiteds-asxrhc-weak-financials-pull><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Ramsay Health Care's (ASX:RHC) stock is up by a considerable 16% over the past three months.   We, however wanted to have a closer look at its key financial indicators as the markets usually pay for ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/can-ramsay-health-care-limiteds-asxrhc-weak-financials-pull\">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":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://simplywall.st/stocks/au/healthcare/asx-rhc/ramsay-health-care-shares/news/can-ramsay-health-care-limiteds-asxrhc-weak-financials-pull","article_id":"2609546980","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/can-ramsay-health-care-limiteds-asxrhc-weak-financials-pull","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609546980","pubTimestamp":1770416576,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Ramsay Health Care's (ASX:RHC) stock is up by a considerable 16% over the past three months. We, however wanted to have...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","BK7113":"保健护理机构","BK4585":"ETF&股票定投概念","LABU":"三倍做多标普生物-Direxion","XLV":"健康照护类股ETF-SPDR","XBI":"SPDR S&P Biotech ETF","BK4581":"高盛持仓","RHC.AU":"RAMSAY HEALTH CARE LTD"},"translate_title":"Ramsay Health Care Limited(ASX：RHC)疲软的财务状况能否阻止该股目前的股价势头？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XBI":0.6,"RHC.AU":1.5,"LABU":0.6,"XLV":1.5},"content_text":"Ramsay Health Care's (ASX:RHC) stock is up by a considerable 16% over the past three months.   We, however wanted to have a closer look at its key financial indicators as the markets usually pay for long-term fundamentals, and in this case, they don't look very promising.      Particularly, we will be paying attention to Ramsay Health Care's  ROE today.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Trump has pledged to \"unleash\" American oil and gas and these 15 US stocks have developments that are poised to benefit.Advertisement How Is ROE Calculated?  Return on equity can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Ramsay Health Care is:0.8% = AU$46m ÷ AU$5.7b (Based on the trailing twelve months to June 2025). The 'return' refers to a company's earnings over the last year.  So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.01.  View our latest analysis for Ramsay Health Care   What Is The Relationship Between ROE And Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential.  Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.  Ramsay Health Care's Earnings Growth And 0.8% ROE  It is hard to argue that Ramsay Health Care's ROE is much good in and of itself.   Not just that, even compared to the industry average of 6.3%, the company's ROE is entirely unremarkable.   Given the circumstances, the significant decline in net income by 23% seen by Ramsay Health Care over the last five years is not surprising.  However, there could also be other factors causing the earnings to decline.  For instance, the company has a very high payout ratio, or is faced with competitive pressures.     As a next step, we compared Ramsay Health Care's performance with the industry and found thatRamsay Health Care's performance is depressing even when compared with the industry, which has shrunk its earnings at a rate of 16% in the same period, which is a slower than the company.   ASX:RHC Past Earnings Growth February 6th 2026 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price.  Doing so will help them establish if the stock's future looks promising or ominous.    Is Ramsay Health Care fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Ramsay Health Care Making Efficient Use Of Its Profits?    Ramsay Health Care's declining earnings is not surprising given how the company is spending most of its profits in paying dividends, judging by its three-year median payout ratio of 87% (or a retention ratio of 13%).    With only very little left to reinvest into the business, growth in earnings is far from likely.     To know the 3 risks we have identified for Ramsay Health Care visit our risks dashboard for free.   In addition, Ramsay Health Care has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.      Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 64% over the next three years.   As a result, the expected drop in Ramsay Health Care's payout ratio explains the anticipated rise in the company's future ROE to 8.2%, over the same period.      Summary    In total, we would have a hard think before deciding on any investment action concerning Ramsay Health Care.      As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate.       That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate.     To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. 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":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}