Ramsay Health Care Limited

ASX:RHC

Ramsay Health Care Limited

ASX:RHC
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$39.85 (-0.9%)
Last close price
#472
Rank
1
Held by
15
Followers
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Reports (3) My Report Forum Investors
Forum Topics RHC RHC Management

Pinned straw:

Straw deleted
Strawman
Added 3 years ago

The debt has always put me off with Ramsay.

At $5.15billion (net), it's a heck of a lot. That gives a net debt to equity of 109%

Yes, this debt is supported by good quality tangible assets. And yes, barring global pandemics, the cash flows should be fairly reliable. The interest cover is 4.3x. And there's no imminent maturity. But in the next 3-4 years a lot of this will need to be rolled over, I suspect at much higher rates.


16
mikebrisy
Added 3 years ago

Amazing,... the SP has gone below its COVID-low. I'd never consider it due to 1) lack of pricing power and 2) weak organic growth proposition.

However, even with today's 10% drop (at time of writing) it is still on a forward p/e of 32-33x.

Clearly KKR had a bunch of financial and restructuring levers to pull, including property play. But I've never understood the value of this company.

I wonder if the Board would take $65 today. (Asking for a friend)

Disc: Not held in RL or SM (Never have, never will)

16
thunderhead
Added 3 years ago

Yep. High debt is a noose in this kind of rates environment.

8
Solvetheriddle
Added 3 years ago

never the same since the old man left, a case study in diluting the franchise, imo

actually have a couple of stories that support that view, for another time

8