TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
201.2 USD
-2.15 (-1.06%)
199.531 USD
-1.67 (-0.83%)
Overall THC gets a fundamental rating of 6 out of 10. We evaluated THC against 100 industry peers in the Health Care Providers & Services industry. While THC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. THC may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, THC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year THC was profitable.
In the past year THC had a positive cash flow from operations.
Each year in the past 5 years THC has been profitable.
Each year in the past 5 years THC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of THC (4.60%) is better than 74.26% of its industry peers.
With an excellent Return On Equity value of 33.73%, THC belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
THC's Return On Invested Capital of 11.65% is amongst the best of the industry. THC outperforms 85.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for THC is in line with the industry average of 9.19%.
The last Return On Invested Capital (11.65%) for THC is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 33.73% | ||
| ROIC | 11.65% |
ROA(3y)4.91%
ROA(5y)3.9%
ROE(3y)50.24%
ROE(5y)332.92%
ROIC(3y)9.25%
ROIC(5y)8.01%
1.3 Margins
The Profit Margin of THC (6.49%) is better than 85.15% of its industry peers.
In the last couple of years the Profit Margin of THC has grown nicely.
THC has a better Operating Margin (17.52%) than 96.04% of its industry peers.
In the last couple of years the Operating Margin of THC has grown nicely.
THC has a better Gross Margin (82.26%) than 96.04% of its industry peers.
THC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.52% | ||
| PM (TTM) | 6.49% | ||
| GM | 82.26% |
OM growth 3Y10.99%
OM growth 5Y11.36%
PM growth 3Y48.9%
PM growth 5YN/A
GM growth 3Y-0.23%
GM growth 5Y-0.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so THC is still creating some value.
The number of shares outstanding for THC has been reduced compared to 1 year ago.
THC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for THC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.86 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
THC has a Altman-Z score of 1.86. This is comparable to the rest of the industry: THC outperforms 43.56% of its industry peers.
THC has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as THC would need 8.78 years to pay back of all of its debts.
The Debt to FCF ratio of THC (8.78) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that THC has dependencies on debt financing.
THC's Debt to Equity ratio of 3.26 is on the low side compared to the rest of the industry. THC is outperformed by 75.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.32
WACC8.8%
2.3 Liquidity
THC has a Current Ratio of 1.71. This is a normal value and indicates that THC is financially healthy and should not expect problems in meeting its short term obligations.
THC has a Current ratio of 1.71. This is in the better half of the industry: THC outperforms 68.32% of its industry peers.
A Quick Ratio of 1.64 indicates that THC should not have too much problems paying its short term obligations.
THC has a better Quick ratio (1.64) than 66.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.32% over the past year.
The Earnings Per Share has been growing by 34.84% on average over the past years. This is a very strong growth
Looking at the last year, THC shows a decrease in Revenue. The Revenue has decreased by -0.56% in the last year.
The Revenue has been growing slightly by 2.26% on average over the past years.
EPS 1Y (TTM)39.32%
EPS 3Y16.22%
EPS 5Y34.84%
EPS Q2Q%26.28%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y1.98%
Revenue growth 5Y2.26%
Sales Q2Q%3.26%
3.2 Future
THC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.65% yearly.
Based on estimates for the next years, THC will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y36.76%
EPS Next 2Y18.31%
EPS Next 3Y15.68%
EPS Next 5Y13.65%
Revenue Next Year2.31%
Revenue Next 2Y3.35%
Revenue Next 3Y3.88%
Revenue Next 5Y3.27%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.96 indicates a correct valuation of THC.
Based on the Price/Earnings ratio, THC is valued cheaper than 84.16% 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 27.19.
With a Price/Forward Earnings ratio of 12.08, THC is valued correctly.
Based on the Price/Forward Earnings ratio, THC is valued cheaper than 86.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of THC to the average of the S&P500 Index (23.92), we can say THC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 90.10% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of THC indicates a rather cheap valuation: THC is cheaper than 82.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The 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 15.68% in the coming years.
PEG (NY)0.35
PEG (5Y)0.37
EPS Next 2Y18.31%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
201.2
-2.15 (-1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.45%
Inst Owner Change-0.24%
Ins Owners0.73%
Ins Owner Change-1.09%
Market Cap17.68B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target238.92 (18.75%)
Short Float %3.08%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.75%
Min EPS beat(2)10.92%
Max EPS beat(2)38.59%
EPS beat(4)4
Avg EPS beat(4)25.46%
Min EPS beat(4)10.92%
Max EPS beat(4)38.59%
EPS beat(8)8
Avg EPS beat(8)41.73%
EPS beat(12)12
Avg EPS beat(12)37.25%
EPS beat(16)16
Avg EPS beat(16)44.64%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)1.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)1.13%
Revenue beat(8)6
Avg Revenue beat(8)0.46%
Revenue beat(12)9
Avg Revenue beat(12)0.73%
Revenue beat(16)9
Avg Revenue beat(16)-0.03%
PT rev (1m)1.35%
PT rev (3m)17.61%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.85 | ||
| P/FCF | 11.77 | ||
| P/OCF | 7.14 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.23 |
EPS(TTM)15.52
EY7.71%
EPS(NY)16.66
Fwd EY8.28%
FCF(TTM)17.09
FCFY8.49%
OCF(TTM)28.19
OCFY14.01%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.35
PEG (5Y)0.37
Graham Number126.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 33.73% | ||
| ROCE | 14.7% | ||
| ROIC | 11.65% | ||
| ROICexc | 13.23% | ||
| ROICexgc | 30.88% | ||
| OM | 17.52% | ||
| PM (TTM) | 6.49% | ||
| GM | 82.26% | ||
| FCFM | 7.2% |
ROA(3y)4.91%
ROA(5y)3.9%
ROE(3y)50.24%
ROE(5y)332.92%
ROIC(3y)9.25%
ROIC(5y)8.01%
ROICexc(3y)10.01%
ROICexc(5y)8.76%
ROICexgc(3y)21.74%
ROICexgc(5y)18.93%
ROCE(3y)11.67%
ROCE(5y)10.11%
ROICexgc growth 3Y12.5%
ROICexgc growth 5Y15.11%
ROICexc growth 3Y10.5%
ROICexc growth 5Y10.87%
OM growth 3Y10.99%
OM growth 5Y11.36%
PM growth 3Y48.9%
PM growth 5YN/A
GM growth 3Y-0.23%
GM growth 5Y-0.27%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 118.3% | ||
| Cap/Sales | 4.68% | ||
| Interest Coverage | 4.59 | ||
| Cash Conversion | 55.34% | ||
| Profit Quality | 110.93% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.86 |
F-Score5
WACC8.8%
ROIC/WACC1.32
Cap/Depr(3y)96.91%
Cap/Depr(5y)86.14%
Cap/Sales(3y)4.04%
Cap/Sales(5y)3.71%
Profit Quality(3y)126.2%
Profit Quality(5y)239.34%
High Growth Momentum
Growth
EPS 1Y (TTM)39.32%
EPS 3Y16.22%
EPS 5Y34.84%
EPS Q2Q%26.28%
EPS Next Y36.76%
EPS Next 2Y18.31%
EPS Next 3Y15.68%
EPS Next 5Y13.65%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y1.98%
Revenue growth 5Y2.26%
Sales Q2Q%3.26%
Revenue Next Year2.31%
Revenue Next 2Y3.35%
Revenue Next 3Y3.88%
Revenue Next 5Y3.27%
EBIT growth 1Y14.33%
EBIT growth 3Y13.18%
EBIT growth 5Y13.88%
EBIT Next Year44.53%
EBIT Next 3Y16.02%
EBIT Next 5Y9.84%
FCF growth 1Y31.99%
FCF growth 3Y7.04%
FCF growth 5Y14.67%
OCF growth 1Y25.72%
OCF growth 3Y9.29%
OCF growth 5Y10.67%
TENET HEALTHCARE CORP / THC FAQ
What is the ChartMill fundamental rating of TENET HEALTHCARE CORP (THC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to THC.
What is the valuation status for THC stock?
ChartMill assigns a valuation rating of 8 / 10 to TENET HEALTHCARE CORP (THC). This can be considered as Undervalued.
Can you provide the profitability details for TENET HEALTHCARE CORP?
TENET HEALTHCARE CORP (THC) has a profitability rating of 9 / 10.
What is the valuation of TENET HEALTHCARE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TENET HEALTHCARE CORP (THC) is 12.96 and the Price/Book (PB) ratio is 4.41.
Can you provide the expected EPS growth for THC stock?
The Earnings per Share (EPS) of TENET HEALTHCARE CORP (THC) is expected to grow by 36.76% in the next year.