Australia Stock Alert

AUSTR

CLOSING UPDATE: Ramsay Health Care increased 1.2%, led Health care sector higher July 25, 2017 16:00:00 AEST

NEWS BITES - AUSTRALIA

This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Ramsay Health Care, Australia's largest health care company by market capitalisation, has increased 1.2% to trade at $A72.21 vs. the Health care sector which strengthened 87.1 points (or 0.8%) to 10,957.1. Representing a weighting of about 19.1% of the sector, the stock accounted for 28.9% of today's gain. Trading volume was 43% of average at the end of the day. Compared with the All Ordinaries Index which rose 37.3 points (or 0.7%) in the day, this represented a relative price increase of 0.6%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.03 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings/Growth of 1.59 [3.0]

+ Price/Sales of 1.7 [2.0]

+ Return on Equity 28.3% [11.4%]

+ Return on Assets 6.2% [5.1%]

+ Return on Capital Employed 13.5% [11.2%]

+ Year-on-Year Earnings Growth of 17.4% [11.0%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 6.1 times.

+ Tobin's Q Ratio is 1.8. Compared with the rest of the market the stock is undervalued.

+ As per the Du Pont analysis, Return on Equity is high at 28.3%. Also, this has improved from 24.3% last year.

Note

Ramsay Health Care today is at a discount of 12.7% to the 12-month high of $A82.69 on 01 Sep, 2016. It is at a premium of 16.2% to the 12-month low of $A62.15 on 16 Mar, 2017.

Bearish Signals:

The price decreased 0.1% in the last week and dropped 2.2% in the last month.

Net profit margin has averaged 5.9% in the last 3 years. This is lower than the sector average of 7.6% and suggests a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price to Book of 7.2 [6.0]

Dividend yield of 1.7% [2.2%]

TODAY'S ALERT

Morning Alert: Ramsay Health Care increases 0.5%

July 25, 2017 11:00:00 AEST

Ramsay Health Care Limited (ASX:RHC) has increased 38.0c (or 0.5%) to trade at $A71.73.

RECENT ALERTS

CLOSING UPDATE: Ramsay Health Care in 2nd consecutive fall, nears two-month low

July 24, 2017 16:00:00 AEST

Ramsay Health Care, Australia's largest health care company by market capitalisation, slipped further on Monday, sliding an additional 62.0c (or 0.9%) to trade at $A71.35. The stock decreased 0.4% on Friday bringing its 2-day fall to 1.3%. It is now approaching its 38-day low of $A70.93. Compared with the All Ordinaries Index which fell 33.2 points (or 0.6%) in the day, this represented a relative price change of -0.3%.

Morning Alert: Ramsay Health Care decreases 1.0%

July 24, 2017 11:00:00 AEST

Ramsay Health Care Limited (ASX:RHC) has decreased 73.0c (or 1.0%) to trade at $A71.24.

Ramsay Health Care Limited (AU:RHC; ASX:RHC; AX:RHC)

ISIN: AU000000RHC8

PermID: 4295858070

Source: www.BuySellSignals.com