TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation
NYSE:THC • US88033G4073
242.88 USD
+7.76 (+3.3%)
At close: Mar 3, 2026
242.88 USD
0 (0%)
After Hours: 3/3/2026, 8:04:00 PM
This THC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to THC. THC was compared to 101 industry peers in the Health Care Providers & Services industry. THC has an excellent profitability rating, but there are some minor concerns on its financial health. THC has a correct valuation and a medium growth rate.
1. THC Profitability Analysis
1.1 Basic Checks
- THC had positive earnings in the past year.
- In the past year THC had a positive cash flow from operations.
- Each year in the past 5 years THC has been profitable.
- In the past 5 years THC always reported a positive cash flow from operatings.
1.2 Ratios
- THC has a better Return On Assets (4.74%) than 75.25% of its industry peers.
- With an excellent Return On Equity value of 33.34%, THC belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.
- The Return On Invested Capital of THC (11.83%) is better than 86.14% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for THC is in line with the industry average of 9.13%.
- The 3 year average ROIC (10.41%) for THC is below the current ROIC(11.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 33.34% | ||
| ROIC | 11.83% |
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.41%
ROIC(5y)9.48%
1.3 Margins
- THC has a better Profit Margin (6.60%) than 84.16% 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 17.28%, THC belongs to the top of the industry, outperforming 96.04% of the companies in the same industry.
- In the last couple of years the Operating Margin of THC has grown nicely.
- THC's Gross Margin of 82.26% is amongst the best of the industry. THC outperforms 96.04% 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 | 17.28% | ||
| PM (TTM) | 6.6% | ||
| GM | 82.26% |
OM growth 3Y10.6%
OM growth 5Y17.74%
PM growth 3Y45.5%
PM growth 5Y23.89%
GM growth 3Y-0.27%
GM growth 5Y-0.2%
2. THC Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), THC is creating some value.
- Compared to 1 year ago, THC has less shares outstanding
- Compared to 5 years ago, THC has less shares outstanding
- Compared to 1 year ago, THC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.98 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 1.98, THC is in line with its industry, outperforming 48.51% of the companies in the same industry.
- THC has a debt to FCF ratio of 5.21. This is a neutral value as THC would need 5.21 years to pay back of all of its debts.
- THC has a better Debt to FCF ratio (5.21) than 62.38% of its industry peers.
- THC has a Debt/Equity ratio of 3.10. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of THC (3.10) is worse than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.43
WACC8.26%
2.3 Liquidity
- THC has a Current Ratio of 1.76. 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 1.76. This is in the better half of the industry: THC outperforms 70.30% of its industry peers.
- THC has a Quick Ratio of 1.68. This is a normal value and indicates that THC is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of THC (1.68) is better than 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.68 |
3. THC Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 41.01% over the past year.
- THC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.26% yearly.
- THC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.12%.
- The Revenue has been growing slightly by 3.85% on average over the past years.
EPS 1Y (TTM)41.01%
EPS 3Y34.93%
EPS 5Y16.26%
EPS Q2Q%36.63%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%8.97%
3.2 Future
- Based on estimates for the next years, THC will show a small growth in Earnings Per Share. The EPS will grow by 2.62% on average per year.
- The Revenue is expected to grow by 3.43% on average over the next years.
EPS Next Y-1.03%
EPS Next 2Y3.47%
EPS Next 3Y6.93%
EPS Next 5Y2.62%
Revenue Next Year3.93%
Revenue Next 2Y3.18%
Revenue Next 3Y3.48%
Revenue Next 5Y3.43%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. THC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.47, which indicates a correct valuation of THC.
- THC's Price/Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 84.16% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.83, THC is valued a bit cheaper.
- The Price/Forward Earnings ratio is 14.63, which indicates a correct valuation of THC.
- Based on the Price/Forward Earnings ratio, THC is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of THC to the average of the S&P500 Index (24.95), we can say THC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, THC is valued cheaper than 86.14% of the companies in the same industry.
- 87.13% 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 | 8.44 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
- THC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y3.47%
EPS Next 3Y6.93%
5. THC Dividend Analysis
5.1 Amount
- THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
THC Fundamentals: All Metrics, Ratios and Statistics
242.88
+7.76 (+3.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)04-27 2026-04-27/amc
Inst Owners98.45%
Inst Owner Change-2.1%
Ins Owners0.73%
Ins Owner Change6.19%
Market Cap21.35B
Revenue(TTM)21.31B
Net Income(TTM)1.41B
Analysts81.43
Price Target255.33 (5.13%)
Short Float %3.17%
Short Ratio2.84
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)12.87%
Min EPS beat(2)10.92%
Max EPS beat(2)14.82%
EPS beat(4)4
Avg EPS beat(4)25.53%
Min EPS beat(4)10.92%
Max EPS beat(4)38.59%
EPS beat(8)8
Avg EPS beat(8)35.38%
EPS beat(12)12
Avg EPS beat(12)33.64%
EPS beat(16)16
Avg EPS beat(16)40.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)0%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-0.28%
Max Revenue beat(4)1.13%
Revenue beat(8)5
Avg Revenue beat(8)0.39%
Revenue beat(12)8
Avg Revenue beat(12)0.73%
Revenue beat(16)9
Avg Revenue beat(16)0.21%
PT rev (1m)6.73%
PT rev (3m)8.93%
EPS NQ rev (1m)-6.22%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)0.36%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 14.63 | ||
| P/S | 1 | ||
| P/FCF | 8.44 | ||
| P/OCF | 6.03 | ||
| P/B | 5.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.96 |
EPS(TTM)16.78
EY6.91%
EPS(NY)16.61
Fwd EY6.84%
FCF(TTM)28.79
FCFY11.85%
OCF(TTM)40.28
OCFY16.58%
SpS242.46
BVpS48.01
TBVpS-94.73
PEG (NY)N/A
PEG (5Y)0.89
Graham Number134.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 33.34% | ||
| ROCE | 14.6% | ||
| ROIC | 11.83% | ||
| ROICexc | 13.35% | ||
| ROICexgc | 30.47% | ||
| OM | 17.28% | ||
| PM (TTM) | 6.6% | ||
| GM | 82.26% | ||
| FCFM | 11.87% |
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.41%
ROIC(5y)9.48%
ROICexc(3y)11.56%
ROICexc(5y)10.42%
ROICexgc(3y)25.7%
ROICexgc(5y)22.87%
ROCE(3y)12.86%
ROCE(5y)11.71%
ROICexgc growth 3Y16.45%
ROICexgc growth 5Y21.31%
ROICexc growth 3Y13.69%
ROICexc growth 5Y19.39%
OM growth 3Y10.6%
OM growth 5Y17.74%
PM growth 3Y45.5%
PM growth 5Y23.89%
GM growth 3Y-0.27%
GM growth 5Y-0.2%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.21 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 117.03% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 4.26 | ||
| Cash Conversion | 77.89% | ||
| Profit Quality | 179.82% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.98 |
F-Score6
WACC8.26%
ROIC/WACC1.43
Cap/Depr(3y)105.72%
Cap/Depr(5y)96.95%
Cap/Sales(3y)4.3%
Cap/Sales(5y)4.05%
Profit Quality(3y)160.11%
Profit Quality(5y)131.6%
High Growth Momentum
Growth
EPS 1Y (TTM)41.01%
EPS 3Y34.93%
EPS 5Y16.26%
EPS Q2Q%36.63%
EPS Next Y-1.03%
EPS Next 2Y3.47%
EPS Next 3Y6.93%
EPS Next 5Y2.62%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%8.97%
Revenue Next Year3.93%
Revenue Next 2Y3.18%
Revenue Next 3Y3.48%
Revenue Next 5Y3.43%
EBIT growth 1Y14.49%
EBIT growth 3Y14.57%
EBIT growth 5Y22.28%
EBIT Next Year24.61%
EBIT Next 3Y10.68%
EBIT Next 5Y6.81%
FCF growth 1Y126.7%
FCF growth 3Y99.01%
FCF growth 5Y-2.47%
OCF growth 1Y72.94%
OCF growth 3Y48.41%
OCF growth 5Y0.77%
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 6 / 10 to TENET HEALTHCARE CORP (THC). This can be considered as Fairly Valued.
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 14.47 and the Price/Book (PB) ratio is 5.06.
Can you provide the expected EPS growth for THC stock?
The Earnings per Share (EPS) of TENET HEALTHCARE CORP (THC) is expected to decline by -1.03% in the next year.