TENET HEALTHCARE CORP (THC)
US88033G4073 - Common Stock
Overall THC gets a fundamental rating of 6 out of 10. We evaluated THC against 107 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
THC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years THC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.64%, THC belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 81.53%, THC belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
THC has a better Return On Invested Capital (10.42%) than 88.57% of its industry peers.
THC had an Average Return On Invested Capital over the past 3 years of 8.25%. This is in line with the industry average of 8.15%.
The 3 year average ROIC (8.25%) for THC is below the current ROIC(10.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 81.53% | ||
| ROIC | 10.42% |
ROA(3y)2.33%
ROA(5y)1.49%
ROE(3y)54.3%
ROE(5y)N/A
ROIC(3y)8.25%
ROIC(5y)7.19%
1.3 Margins
With an excellent Profit Margin value of 14.91%, THC belongs to the best of the industry, outperforming 98.10% 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 15.23%, THC belongs to the best of the industry, outperforming 92.38% of the companies in the same industry.
In the last couple of years the Operating Margin of THC has grown nicely.
Looking at the Gross Margin, with a value of 82.61%, THC belongs to the top of the industry, outperforming 95.24% 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 | 15.23% | ||
| PM (TTM) | 14.91% | ||
| GM | 82.61% |
OM growth 3Y24.03%
OM growth 5Y9.03%
PM growth 3Y9.55%
PM growth 5Y37.45%
GM growth 3Y-0.23%
GM growth 5Y-0.26%
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.
The number of shares outstanding for THC has been reduced compared to 1 year ago.
Compared to 5 years ago, THC has less shares outstanding
Compared to 1 year ago, THC has an improved debt to assets ratio.
2.2 Solvency
THC has an Altman-Z score of 1.61. This is a bad value and indicates that THC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of THC (1.61) is comparable to the rest of the industry.
The Debt to FCF ratio of THC is 5.38, which is a neutral value as it means it would take THC, 5.38 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.38, THC is doing good in the industry, outperforming 75.24% of the companies in the same industry.
THC has a Debt/Equity ratio of 3.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.33, THC is doing worse than 79.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 1.61 |
ROIC/WACC1.4
WACC7.47%
2.3 Liquidity
THC has a Current Ratio of 1.58. 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 Current ratio (1.58) which is in line with its industry peers.
A Quick Ratio of 1.52 indicates that THC should not have too much problems paying its short term obligations.
The Quick ratio of THC (1.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.96% over the past year.
The Earnings Per Share has been growing by 30.28% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.03% in the past year.
Measured over the past years, THC shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
EPS 1Y (TTM)77.96%
EPS 3Y-4.04%
EPS 5Y30.28%
EPS Q2Q%103.47%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y5.22%
Revenue growth 5Y2.33%
Sales Q2Q%1.11%
3.2 Future
The Earnings Per Share is expected to grow by 18.37% on average over the next years. This is quite good.
THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y60.98%
EPS Next 2Y28.47%
EPS Next 3Y23.28%
EPS Next 5Y18.37%
Revenue Next Year1.36%
Revenue Next 2Y1.9%
Revenue Next 3Y2.78%
Revenue Next 5Y3.82%
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
Based on the Price/Earnings ratio of 11.01, the valuation of THC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 88.57% 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 27.41.
A Price/Forward Earnings ratio of 10.65 indicates a reasonable valuation of THC.
88.57% 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 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THC is valued cheaply inside the industry as 96.19% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of THC indicates a rather cheap valuation: THC is cheaper than 98.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.87 | ||
| EV/EBITDA | 5.06 |
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.
THC's earnings are expected to grow with 23.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)0.36
EPS Next 2Y28.47%
EPS Next 3Y23.28%
5. Dividend
5.1 Amount
No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TENET HEALTHCARE CORP
NYSE:THC (1/3/2025, 8:05:43 PM)
After market: 122.65 0 (0%)122.65
-2.57 (-2.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.1%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change-1.26%
Market Cap11.66B
Analysts81.6
Price Target186.11 (51.74%)
Short Float %2.88%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)21.46%
Min EPS beat(2)20.57%
Max EPS beat(2)22.34%
EPS beat(4)4
Avg EPS beat(4)57.99%
Min EPS beat(4)20.57%
Max EPS beat(4)123.42%
EPS beat(8)8
Avg EPS beat(8)43.15%
EPS beat(12)12
Avg EPS beat(12)51.03%
EPS beat(16)16
Avg EPS beat(16)62.31%
Revenue beat(2)2
Avg Revenue beat(2)0.68%
Min Revenue beat(2)0.37%
Max Revenue beat(2)0.99%
Revenue beat(4)4
Avg Revenue beat(4)1.28%
Min Revenue beat(4)0.37%
Max Revenue beat(4)3.15%
Revenue beat(8)7
Avg Revenue beat(8)1.27%
Revenue beat(12)7
Avg Revenue beat(12)0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.19%
PT rev (1m)-3.25%
PT rev (3m)4.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.59%
EPS NY rev (1m)0.68%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 10.65 | ||
| P/S | 0.56 | ||
| P/FCF | 4.87 | ||
| P/OCF | 3.64 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.06 |
EPS(TTM)11.14
EY9.08%
EPS(NY)11.52
Fwd EY9.39%
FCF(TTM)25.16
FCFY20.52%
OCF(TTM)33.67
OCFY27.45%
SpS220.53
BVpS40.32
TBVpS-85.46
PEG (NY)0.18
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 81.53% | ||
| ROCE | 13.41% | ||
| ROIC | 10.42% | ||
| ROICexc | 12.58% | ||
| ROICexgc | 31.93% | ||
| OM | 15.23% | ||
| PM (TTM) | 14.91% | ||
| GM | 82.61% | ||
| FCFM | 11.41% |
ROA(3y)2.33%
ROA(5y)1.49%
ROE(3y)54.3%
ROE(5y)N/A
ROIC(3y)8.25%
ROIC(5y)7.19%
ROICexc(3y)8.82%
ROICexc(5y)7.66%
ROICexgc(3y)18.72%
ROICexgc(5y)15.91%
ROCE(3y)10.61%
ROCE(5y)9.25%
ROICexcg growth 3Y25.21%
ROICexcg growth 5Y8.19%
ROICexc growth 3Y25.41%
ROICexc growth 5Y7.04%
OM growth 3Y24.03%
OM growth 5Y9.03%
PM growth 3Y9.55%
PM growth 5Y37.45%
GM growth 3Y-0.23%
GM growth 5Y-0.26%
F-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.38 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 96.2% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 3.77 | ||
| Cash Conversion | 79.34% | ||
| Profit Quality | 76.55% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.61 |
F-Score8
WACC7.47%
ROIC/WACC1.4
Cap/Depr(3y)84.63%
Cap/Depr(5y)79.14%
Cap/Sales(3y)3.67%
Cap/Sales(5y)3.54%
Profit Quality(3y)147.76%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.96%
EPS 3Y-4.04%
EPS 5Y30.28%
EPS Q2Q%103.47%
EPS Next Y60.98%
EPS Next 2Y28.47%
EPS Next 3Y23.28%
EPS Next 5Y18.37%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y5.22%
Revenue growth 5Y2.33%
Sales Q2Q%1.11%
Revenue Next Year1.36%
Revenue Next 2Y1.9%
Revenue Next 3Y2.78%
Revenue Next 5Y3.82%
EBIT growth 1Y25%
EBIT growth 3Y30.5%
EBIT growth 5Y11.57%
EBIT Next Year56.59%
EBIT Next 3Y19.63%
EBIT Next 5Y15.45%
FCF growth 1Y884.77%
FCF growth 3Y-17.28%
FCF growth 5Y30.31%
OCF growth 1Y214.23%
OCF growth 3Y-11.35%
OCF growth 5Y17.74%