TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
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
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 is not valued too expensively and it also shows a decent growth rate.
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.
- THC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- THC has a better Return On Assets (4.74%) than 75.25% of its industry peers.
- THC has a better Return On Equity (33.34%) than 93.07% of its industry peers.
- THC has a Return On Invested Capital of 11.83%. This is amongst the best in the industry. THC outperforms 86.14% of its industry peers.
- THC had an Average Return On Invested Capital over the past 3 years of 10.41%. This 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
- The Profit Margin of THC (6.60%) is better than 84.16% of its industry peers.
- THC's Profit Margin has improved in the last couple of years.
- THC has a Operating Margin of 17.28%. This is amongst the best in the industry. THC outperforms 96.04% of its industry peers.
- In the last couple of years the Operating Margin of THC has grown nicely.
- Looking at the Gross Margin, with a value of 82.26%, 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 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. 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.
- Compared to 1 year ago, THC has less shares outstanding
- THC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, THC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.96 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- THC has a Altman-Z score (1.96) which is in line with 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 better Debt to FCF ratio (5.21) than 62.38% of its industry peers.
- A Debt/Equity ratio of 3.10 is on the high side and indicates that THC has dependencies on debt financing.
- THC has a worse Debt to Equity ratio (3.10) than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 1.96 |
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 better Current ratio (1.76) than 70.30% of its industry peers.
- A Quick Ratio of 1.68 indicates that THC should not have too much problems paying its short term obligations.
- THC has a Quick ratio of 1.68. This is in the better half of the industry: THC outperforms 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.68 |
3. Growth
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.
- 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
- The Earnings Per Share is expected to grow by 2.62% on average over the next years.
- 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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.47, the valuation of THC can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 85.15% of the companies listed in the same industry.
- THC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.83.
- Based on the Price/Forward Earnings ratio of 14.63, the valuation of THC can be described as correct.
- Based on the Price/Forward Earnings ratio, THC is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
- THC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
- THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 86.14% of the companies in the same industry.
- THC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THC is cheaper than 87.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 6.81 |
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. Dividend
5.1 Amount
- No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 | 6.81 |
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 | 1.96 |
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.