TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
212.245 USD
+0.91 (+0.43%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. THC may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In the past year THC had a positive cash flow from operations.
Each year in the past 5 years THC has been profitable.
Each year in the past 5 years THC had a positive operating cash flow.
1.2 Ratios
THC has a better Return On Assets (4.60%) than 75.25% of its industry peers.
THC has a Return On Equity of 33.73%. This is amongst the best in the industry. THC outperforms 95.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.65%, THC belongs to the top of the industry, outperforming 86.14% 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 9.22%.
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
The Profit Margin of THC (6.49%) 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 17.52%. This is amongst the best in the industry. THC outperforms 95.05% of its industry peers.
In the last couple of years the Operating Margin of THC has grown nicely.
THC has a better Gross Margin (82.26%) than 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 | 17.52% | ||
| 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.
THC has less shares outstanding than it did 1 year ago.
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 1.88 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
THC has a Altman-Z score (1.88) which is in line with its industry peers.
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.
The Debt to FCF ratio of THC (8.78) is comparable to the rest of the industry.
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: 77.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.35
WACC8.6%
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.
Looking at the Current ratio, with a value of 1.71, THC is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
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.
The Quick ratio of THC (1.64) is better than 65.35% 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.
THC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.84% yearly.
THC shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
The Revenue has been growing slightly by 2.26% on average over the past years.
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
THC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.65% yearly.
The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y34.42%
EPS Next 2Y18.24%
EPS Next 3Y15.73%
EPS Next 5Y13.65%
Revenue Next Year2.02%
Revenue Next 2Y3.27%
Revenue Next 3Y3.83%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
THC is valuated correctly with a Price/Earnings ratio of 13.68.
Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 84.16% of the companies listed in the same industry.
THC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.76, the valuation of THC can be described as correct.
83.17% of the companies in the same industry are more expensive than THC, based on the Price/Forward Earnings ratio.
THC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THC is valued cheaply inside the industry as 87.13% of the companies are valued more expensively.
81.19% 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 | 12.42 | ||
| EV/EBITDA | 6.43 |
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 15.73% in the coming years.
PEG (NY)0.4
PEG (5Y)0.39
EPS Next 2Y18.24%
EPS Next 3Y15.73%
5. Dividend
5.1 Amount
THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:THC (12/4/2025, 2:50:55 PM)
212.245
+0.91 (+0.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.28%
Inst Owner Change-2.87%
Ins Owners0.76%
Ins Owner Change-1.44%
Market Cap18.65B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target234.4 (10.44%)
Short Float %2.61%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)8.71%
PT rev (3m)17.59%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)1%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.76 | ||
| P/S | 0.89 | ||
| P/FCF | 12.42 | ||
| P/OCF | 7.53 | ||
| P/B | 4.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.43 |
EPS(TTM)15.52
EY7.31%
EPS(NY)16.64
Fwd EY7.84%
FCF(TTM)17.09
FCFY8.05%
OCF(TTM)28.19
OCFY13.28%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.4
PEG (5Y)0.39
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 | 1.88 |
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 Y34.42%
EPS Next 2Y18.24%
EPS Next 3Y15.73%
EPS Next 5Y13.65%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y1.98%
Revenue growth 5Y2.26%
Sales Q2Q%3.26%
Revenue Next Year2.02%
Revenue Next 2Y3.27%
Revenue Next 3Y3.83%
Revenue Next 5Y3.27%
EBIT growth 1Y14.33%
EBIT growth 3Y13.18%
EBIT growth 5Y13.88%
EBIT Next Year42.82%
EBIT Next 3Y15.38%
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 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 earnings growth outlook for TENET HEALTHCARE CORP?
The Earnings per Share (EPS) of TENET HEALTHCARE CORP (THC) is expected to grow by 34.42% 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%.