Ramsay Health Care Ltd
RHC: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$73.00 | Wjphpd | Cfnfhcffrx |
Ramsay Healthcare: Shares Undervalued With Underlying Earnings Recovering Largely as We Expected
We maintain our AUD 68 fair value estimate for narrow-moat Ramsay Healthcare. Fiscal 2024 underlying net profit after tax grew roughly 18% to approximately AUD 297 million, broadly in line with our prior expectations. This was driven by improved pricing, recovering volumes, and labour efficiencies. We keep our long-term estimates broadly unchanged, but decrease our forecast fiscal 2024 reported NPAT by 14% to AUD 267 million, largely due to nonrecurring items. This sits within management’s guidance range of AUD 265 million-AUD 270 million.