TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
195.515 USD
+1.14 (+0.59%)
THC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on THC. With these ratings, THC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
THC had positive earnings in the past year.
THC had a positive operating cash flow in the past year.
In the past 5 years THC has always been profitable.
In the past 5 years THC always reported a positive cash flow from operatings.
1.2 Ratios
THC's Return On Assets of 4.60% is fine compared to the rest of the industry. THC outperforms 74.00% of its industry peers.
With an excellent Return On Equity value of 33.73%, THC belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
The Return On Invested Capital of THC (11.65%) is better than 86.00% 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 9.44%.
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
The Profit Margin of THC (6.49%) is better than 84.00% of its industry peers.
THC's Profit Margin has improved in the last couple of years.
THC has a Operating Margin of 17.52%. This is amongst the best in the industry. THC outperforms 95.00% of its industry peers.
THC's Operating Margin has improved in the last couple of years.
The Gross Margin of THC (82.26%) is better than 96.00% 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%
2. Health
2.1 Basic Checks
THC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, THC has less shares outstanding
Compared to 5 years ago, THC has less shares outstanding
THC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.85 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 1.85, THC is in line with its industry, outperforming 45.00% 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.
THC has a Debt to FCF ratio of 8.78. This is comparable to the rest of the industry: THC outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 3.26 is on the high side and indicates that THC has dependencies on debt financing.
With a Debt to Equity ratio value of 3.26, THC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.35
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
The Current ratio of THC (1.71) is better than 67.00% of its industry peers.
THC has a Quick Ratio of 1.64. 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 Quick ratio (1.64) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.64 |
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
THC shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
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.
THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y36.71%
EPS Next 2Y18.15%
EPS Next 3Y15.68%
EPS Next 5Y13.65%
Revenue Next Year2.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.88%
Revenue Next 5Y3.27%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 12.60 indicates a correct valuation of THC.
Based on the Price/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/Earnings ratio of 26.26, THC is valued rather cheaply.
The Price/Forward Earnings ratio is 11.77, which indicates a very decent valuation of THC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 86.00% of the companies listed in the same industry.
THC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.77 |
4.2 Price Multiples
THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 91.00% 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 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.44 | ||
| EV/EBITDA | 6.1 |
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.
The excellent profitability rating of THC may justify a higher PE ratio.
THC's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.36
EPS Next 2Y18.15%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:THC (12/19/2025, 9:58:50 AM)
195.515
+1.14 (+0.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change-2.86%
Ins Owners0.73%
Ins Owner Change-1.21%
Market Cap17.18B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target235.73 (20.57%)
Short Float %3.33%
Short Ratio2.82
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)9.33%
PT rev (3m)17.71%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)1.7%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.77 | ||
| P/S | 0.82 | ||
| P/FCF | 11.44 | ||
| P/OCF | 6.93 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)15.52
EY7.94%
EPS(NY)16.61
Fwd EY8.5%
FCF(TTM)17.09
FCFY8.74%
OCF(TTM)28.19
OCFY14.42%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.34
PEG (5Y)0.36
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 | 1.85 |
F-Score5
WACC8.6%
ROIC/WACC1.35
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 Y36.71%
EPS Next 2Y18.15%
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 Year2.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.88%
Revenue Next 5Y3.27%
EBIT growth 1Y14.33%
EBIT growth 3Y13.18%
EBIT growth 5Y13.88%
EBIT Next Year44.5%
EBIT Next 3Y16.03%
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 of TENET HEALTHCARE CORP (THC) stock?
ChartMill assigns a valuation rating of 9 / 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 earnings growth outlook for TENET HEALTHCARE CORP?
The Earnings per Share (EPS) of TENET HEALTHCARE CORP (THC) is expected to grow by 36.71% in the next year.
Can you provide the dividend sustainability for THC stock?
The dividend rating of TENET HEALTHCARE CORP (THC) is 0 / 10 and the dividend payout ratio is 0%.