NYSE:THC is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screening tool has pinpointed TENET HEALTHCARE CORP (NYSE:THC) as an undervalued stock. NYSE:THC maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Assessment of NYSE:THC

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:THC, the assigned 9 reflects its valuation:

• Based on the Price/Earnings ratio of 11.26, the valuation of THC can be described as reasonable.
• THC's Price/Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 87.74% of the companies in the same industry.
• THC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.18.
• Based on the Price/Forward Earnings ratio of 10.89, the valuation of THC can be described as reasonable.
• 86.79% of the companies in the same industry are more expensive than THC, based on the Price/Forward Earnings ratio.
• THC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.59, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THC indicates a rather cheap valuation: THC is cheaper than 96.23% of the companies listed in the same industry.
• 98.11% of the companies in the same industry are more expensive than THC, based on the Price/Free Cash Flow ratio.
• THC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• THC has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as THC's earnings are expected to grow with 23.28% in the coming years.

A Closer Look at Profitability for NYSE:THC

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:THC scores a 9 out of 10:

• The Return On Assets of THC (10.64%) is better than 95.28% of its industry peers.
• The Return On Equity of THC (81.53%) is better than 97.17% of its industry peers.
• The Return On Invested Capital of THC (10.42%) is better than 88.68% of its industry peers.
• The 3 year average ROIC (8.25%) for THC is below the current ROIC(10.42%), indicating increased profibility in the last year.
• THC has a better Profit Margin (14.91%) than 98.11% of its industry peers.
• THC's Profit Margin has improved in the last couple of years.
• The Operating Margin of THC (15.23%) is better than 92.45% of its industry peers.
• In the last couple of years the Operating Margin of THC has grown nicely.
• The Gross Margin of THC (82.61%) is better than 95.28% of its industry peers.

Health Examination for NYSE:THC

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:THC has earned a 5 out of 10:

• The Debt to FCF ratio of THC (5.38) is better than 75.47% of its industry peers.
• The Current ratio of THC (1.58) is better than 60.38% of its industry peers.

Growth Analysis for NYSE:THC

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:THC boasts a 6 out of 10:

• THC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.96%, which is quite impressive.
• Measured over the past years, THC shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.28% on average per year.
• Based on estimates for the next years, THC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.37% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of THC contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.