Company Snapshot:

• Market cap: $12.01 Billion
• Recent share price: $59.9
• Cash/debt: $315.86 million/$3.17B
• Trailing P/E: 32.64

Ramsay Healthcare is the largest private hospital operator in Australia and one of the top five hospital companies in the world. It has a presence in the UK, France, Indonesia and Malaysia. In Nov 2015, they inked a joint venture agreement with one of China’s leading medical universities to build a number of new private hospitals in China’s Pearl River Delta thus expanding its reach further.

RHC has a strong competitive advantage, which it has leveraged to grow its business. Key features include;

• Guaranteed demand given the growing ageing populations on a global scale
• Pricing power over its customers, insurers and governments, which often have no alternative but to use Ramsay's services.
• Buying and building hospitals is very expensive and this is a major deterrent to other companies looking to enter the market.
• Ramsay has also proven to be very astute at building new beds at just the right pace to grow earnings without increasing supply beyond demand.
• Ramsay delivered solid growth in FY15 with revenues, core earnings per share and full year dividends increasing by 49.8%, 20% and 18.8% respectively.
• Management has provided guidance of 12-14% earnings per share growth in FY16 barring any unforeseen circumstances.

The post Share to buy – Ramsay Healthcare (RHC) appeared first on Australian Stock Report.