THC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 103 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on THC. These ratings could make THC a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year THC was profitable.
THC had a positive operating cash flow in the past year.
Each year in the past 5 years THC has been profitable.
THC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of THC (4.60%) is better than 73.79% of its industry peers.
THC has a Return On Equity of 33.73%. This is amongst the best in the industry. THC outperforms 94.17% of its industry peers.
With an excellent Return On Invested Capital value of 11.65%, THC belongs to the best of the industry, outperforming 85.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for THC is in line with the industry average of 9.21%.
The 3 year average ROIC (9.25%) for THC is below the current ROIC(11.65%), indicating increased profibility in the last year.

		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

THC's Profit Margin of 6.49% is amongst the best of the industry. THC outperforms 84.47% of its industry peers.
In the last couple of years the Profit Margin of THC has grown nicely.
Looking at the Operating Margin, with a value of 17.52%, THC belongs to the top of the industry, outperforming 96.12% of the companies in the same industry.
In the last couple of years the Operating Margin of THC has grown nicely.
THC has a Gross Margin of 82.26%. This is amongst the best in the industry. THC outperforms 96.12% of its industry peers.
In the last couple of years the Gross Margin of THC has remained more or less at the same level.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), THC is 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.
THC has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.84 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.84, THC is in line with its industry, outperforming 43.69% of the companies in the same industry.
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.
THC has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
THC has a Debt to Equity ratio of 3.26. This is in the lower half of the industry: THC underperforms 74.76% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.26
Debt/FCF	8.78
Altman-Z	1.84

ROIC/WACC1.34

WACC8.7%

2.3 Liquidity

A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.71, THC is doing good in the industry, outperforming 67.96% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that THC should not have too much problems paying its short term obligations.
The Quick ratio of THC (1.64) is better than 66.02% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.71
Quick Ratio	1.64

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WACC

Debt/Equity

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Altman-Z score

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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
The Revenue has decreased by -0.56% in the past 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

Based on estimates for the next years, THC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.65% on average per year.
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 Y36.74%

EPS Next 2Y17.92%

EPS Next 3Y15.45%

EPS Next 5Y13.65%

Revenue Next Year2.31%

Revenue Next 2Y3.3%

Revenue Next 3Y3.83%

Revenue Next 5Y3.27%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.16, which indicates a correct valuation of THC.
THC's Price/Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 84.47% of the companies in the same industry.
THC is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.41, the valuation of THC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 87.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of THC to the average of the S&P500 Index (25.98), we can say THC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.16
Fwd PE	11.41

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, THC is valued cheaply inside the industry as 90.29% of the companies are valued more expensively.
83.50% of the companies in the same industry are more expensive than THC, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	11.05
EV/EBITDA	5.99

4.3 Compensation for Growth

THC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of THC may justify a higher PE ratio.
A more expensive valuation may be justified as THC's earnings are expected to grow with 15.45% in the coming years.