TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
199.45 USD
+0.73 (+0.37%)
199.45 USD
0 (0%)
Overall THC gets a fundamental rating of 6 out of 10. We evaluated THC against 101 industry peers in the Health Care Providers & Services industry. THC scores excellent on profitability, but there are some minor concerns on its financial health. THC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes THC very considerable for value investing!
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.
In the past 5 years THC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.60%, THC is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
THC has a better Return On Equity (33.73%) than 94.06% of its industry peers.
With an excellent Return On Invested Capital value of 11.65%, THC belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
THC had an Average Return On Invested Capital over the past 3 years of 9.25%. This is in line with the industry average of 9.21%.
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
THC's Profit Margin of 6.49% is amongst the best of the industry. THC outperforms 85.15% of its industry peers.
In the last couple of years the Profit Margin of THC has grown nicely.
THC's Operating Margin of 17.52% is amongst the best of the industry. THC outperforms 96.04% of its industry peers.
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 96.04% 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
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
THC has less shares outstanding than it did 5 years ago.
THC has a better debt/assets ratio than last year.
2.2 Solvency
THC has an Altman-Z score of 1.86. This is not the best score and indicates that THC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.86, THC perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
The Debt to FCF ratio of THC is 8.78, which is on the high side as it means it would take THC, 8.78 years of fcf income to pay off all of its debts.
THC has a Debt to FCF ratio (8.78) which is in line with its industry peers.
A Debt/Equity ratio of 3.26 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 3.26, THC is doing worse than 75.25% of the companies in the same industry.
| 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 better Current ratio (1.71) than 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's Quick ratio of 1.64 is fine compared to the rest of the industry. THC outperforms 66.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
THC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.32%, which is quite impressive.
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.
Measured over the past years, THC shows a small growth in Revenue. The Revenue has been growing by 2.26% on average per year.
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 Y36.76%
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.85, which indicates a correct valuation of THC.
Based on the Price/Earnings ratio, THC is valued cheaply inside the industry as 84.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of THC to the average of the S&P500 Index (26.60), we can say THC is valued rather cheaply.
A Price/Forward Earnings ratio of 11.97 indicates a reasonable valuation of THC.
THC's Price/Forward Earnings ratio is rather cheap when compared to the industry. THC is 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 (23.23), we can say THC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 11.97 |
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 81.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.67 | ||
| EV/EBITDA | 6.2 |
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
No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
199.45
+0.73 (+0.37%)
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 Change0%
Ins Owners0.73%
Ins Owner Change-1.09%
Market Cap17.53B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target238.92 (19.79%)
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)1.93%
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 | 12.85 | ||
| Fwd PE | 11.97 | ||
| P/S | 0.84 | ||
| P/FCF | 11.67 | ||
| P/OCF | 7.07 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)15.52
EY7.78%
EPS(NY)16.66
Fwd EY8.35%
FCF(TTM)17.09
FCFY8.57%
OCF(TTM)28.19
OCFY14.14%
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 12.85 and the Price/Book (PB) ratio is 4.37.
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.