TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation

NYSE:THC • US88033G4073

Current stock price

199.63 USD
-3.78 (-1.86%)
At close:
199.63 USD
0 (0%)
After Hours:

This THC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. THC Profitability Analysis

1.1 Basic Checks

  • THC had positive earnings in the past year.
  • THC had a positive operating cash flow in the past year.
  • THC had positive earnings in each of the past 5 years.
  • In the past 5 years THC always reported a positive cash flow from operatings.
THC Yearly Net Income VS EBIT VS OCF VS FCFTHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • THC has a Return On Assets of 4.74%. This is in the better half of the industry: THC outperforms 75.00% of its industry peers.
  • THC has a Return On Equity of 33.34%. This is amongst the best in the industry. THC outperforms 95.00% of its industry peers.
  • THC's Return On Invested Capital of 12.14% is amongst the best of the industry. THC outperforms 86.00% 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 8.86%.
  • The last Return On Invested Capital (12.14%) for THC is above the 3 year average (10.81%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.74%
ROE 33.34%
ROIC 12.14%
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.81%
ROIC(5y)9.72%
THC Yearly ROA, ROE, ROICTHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 6.60%, THC belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
  • THC's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 17.74%, THC belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
  • THC's Operating Margin has improved in the last couple of years.
  • THC's Gross Margin of 82.26% is amongst the best of the industry. THC outperforms 96.00% of its industry peers.
  • THC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.74%
PM (TTM) 6.6%
GM 82.26%
OM growth 3Y14.14%
OM growth 5Y19.99%
PM growth 3Y45.5%
PM growth 5Y23.89%
GM growth 3Y-0.27%
GM growth 5Y-0.2%
THC Yearly Profit, Operating, Gross MarginsTHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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5

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.
  • The number of shares outstanding for THC has been reduced compared to 1 year ago.
  • The number of shares outstanding for THC has been reduced compared to 5 years ago.
  • THC has a better debt/assets ratio than last year.
THC Yearly Shares OutstandingTHC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
THC Yearly Total Debt VS Total AssetsTHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 1.89 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • THC's Altman-Z score of 1.89 is in line compared to the rest of the industry. THC outperforms 46.00% of its industry peers.
  • The Debt to FCF ratio of THC is 5.21, which is a neutral value as it means it would take THC, 5.21 years of fcf income to pay off all of its debts.
  • THC has a Debt to FCF ratio (5.21) which is in line with its industry peers.
  • A Debt/Equity ratio of 3.10 is on the high side and indicates that THC has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 3.10, THC is doing worse than 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.1
Debt/FCF 5.21
Altman-Z 1.89
ROIC/WACC1.41
WACC8.61%
THC Yearly LT Debt VS Equity VS FCFTHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.76 indicates that THC should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.76, THC is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
  • A Quick Ratio of 1.68 indicates that THC should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.68, THC is in the better half of the industry, outperforming 71.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.68
THC Yearly Current Assets VS Current LiabilitesTHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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4

3. THC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 41.01% over the past year.
  • Measured over the past years, THC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.26% on average per year.
  • Looking at the last year, THC shows a small growth in Revenue. The Revenue has grown by 3.12% in the last year.
  • THC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.85% yearly.
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

  • The Earnings Per Share is expected to grow by 3.61% on average over the next years.
  • Based on estimates for the next years, THC will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y2.23%
EPS Next 2Y3.05%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue Next Year3.5%
Revenue Next 2Y2.69%
Revenue Next 3Y3.67%
Revenue Next 5Y4.13%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
THC Yearly Revenue VS EstimatesTHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
THC Yearly EPS VS EstimatesTHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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7

4. THC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.90 indicates a reasonable valuation of THC.
  • Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 86.00% of the companies listed in the same industry.
  • THC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.50.
  • A Price/Forward Earnings ratio of 11.64 indicates a reasonable valuation of THC.
  • Based on the Price/Forward Earnings ratio, THC is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, THC is valued a bit cheaper.
Industry RankSector Rank
PE 11.9
Fwd PE 11.64
THC Price Earnings VS Forward Price EarningsTHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THC indicates a rather cheap valuation: THC is cheaper than 90.00% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.86
EV/EBITDA 5.95
THC Per share dataTHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of THC may justify a higher PE ratio.
PEG (NY)5.34
PEG (5Y)0.73
EPS Next 2Y3.05%
EPS Next 3Y7.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. THC Dividend Analysis

5.1 Amount

  • THC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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THC Fundamentals: All Metrics, Ratios and Statistics

TENET HEALTHCARE CORP

NYSE:THC (3/24/2026, 8:04:00 PM)

After market: 199.63 0 (0%)

199.63

-3.78 (-1.86%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-11
Earnings (Next)04-27
Inst Owners98.76%
Inst Owner Change-1.8%
Ins Owners1.16%
Ins Owner Change3.82%
Market Cap17.36B
Revenue(TTM)21.31B
Net Income(TTM)1.41B
Analysts81.43
Price Target255.33 (27.9%)
Short Float %3.05%
Short Ratio2.53
Dividend
Industry RankSector 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)6.22%
PT rev (3m)8.32%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-5.94%
EPS NY rev (1m)3.29%
EPS NY rev (3m)3.26%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.86%
Valuation
Industry RankSector Rank
PE 11.9
Fwd PE 11.64
P/S 0.81
P/FCF 6.86
P/OCF 4.9
P/B 4.11
P/tB N/A
EV/EBITDA 5.95
EPS(TTM)16.78
EY8.41%
EPS(NY)17.15
Fwd EY8.59%
FCF(TTM)29.09
FCFY14.57%
OCF(TTM)40.71
OCFY20.39%
SpS245.06
BVpS48.53
TBVpS-95.75
PEG (NY)5.34
PEG (5Y)0.73
Graham Number135.36
Profitability
Industry RankSector Rank
ROA 4.74%
ROE 33.34%
ROCE 14.99%
ROIC 12.14%
ROICexc 13.71%
ROICexgc 31.29%
OM 17.74%
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)10.81%
ROIC(5y)9.72%
ROICexc(3y)12%
ROICexc(5y)10.68%
ROICexgc(3y)26.71%
ROICexgc(5y)23.47%
ROCE(3y)13.34%
ROCE(5y)12%
ROICexgc growth 3Y20.18%
ROICexgc growth 5Y23.63%
ROICexc growth 3Y17.33%
ROICexc growth 5Y21.67%
OM growth 3Y14.14%
OM growth 5Y19.99%
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 RankSector Rank
Debt/Equity 3.1
Debt/FCF 5.21
Debt/EBITDA 2.82
Cap/Depr 117.03%
Cap/Sales 4.74%
Interest Coverage 4.37
Cash Conversion 76.24%
Profit Quality 179.82%
Current Ratio 1.76
Quick Ratio 1.68
Altman-Z 1.89
F-Score6
WACC8.61%
ROIC/WACC1.41
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 Y2.23%
EPS Next 2Y3.05%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%8.97%
Revenue Next Year3.5%
Revenue Next 2Y2.69%
Revenue Next 3Y3.67%
Revenue Next 5Y4.13%
EBIT growth 1Y17.54%
EBIT growth 3Y18.23%
EBIT growth 5Y24.61%
EBIT Next Year24.61%
EBIT Next 3Y10.68%
EBIT Next 5Y7.95%
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 Fundamental Analysis 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 7 / 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 11.9 and the Price/Book (PB) ratio is 4.11.


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 2.23% in the next year.