Ramsay Health Care Limited

ASX:RHC

Ramsay Health Care Limited

ASX:RHC
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$52.25 (-0.5%)
Last close price
#607
Rank
2
Held by
15
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Forum Topics RHC RHC Management

Pinned straw:
thunderhead
Last edited 8 months ago

How much egg is on the Ramsay board's collective faces after spurning KKR's approach @ $88? They looked after themselves at the expense of shareholders, and have now destroyed an enormous amount of value - the most I can think of in absolute terms on the ASX, especially for a large and established company like this.

The tomatoes may follow at this year's AGM :)
Strawman
8 months 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
8 months 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
8 months ago

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

8
Solvetheriddle
8 months 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