TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
189.92 USD
-0.91 (-0.48%)
Taking everything into account, THC scores 6 out of 10 in our fundamental rating. THC was compared to 102 industry peers in the Health Care Providers & Services industry. While THC has a great profitability rating, 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.
- In the past year THC had a positive cash flow from operations.
- In the past 5 years THC has always been profitable.
- Each year in the past 5 years THC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of THC (4.60%) is better than 74.51% of its industry peers.
- THC has a better Return On Equity (33.73%) than 94.12% of its industry peers.
- THC's Return On Invested Capital of 11.65% is amongst the best of the industry. THC outperforms 85.29% 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 9.21%.
- 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
- Looking at the Profit Margin, with a value of 6.49%, THC belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
- THC's Profit Margin has improved in the last couple of years.
- THC's Operating Margin of 17.52% is amongst the best of the industry. THC outperforms 96.08% 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 96.08% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), THC is creating some value.
- THC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, THC has less shares outstanding
- The debt/assets ratio for THC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.84 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- THC has a Altman-Z score (1.84) 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.
- THC has a Debt to FCF ratio (8.78) which is in line with its industry peers.
- THC has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.26, THC is doing worse than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.33
WACC8.74%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
- THC has a Current ratio of 1.71. This is in the better half of the industry: THC outperforms 68.63% 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.
- Looking at the Quick ratio, with a value of 1.64, THC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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
- Looking at the last year, THC shows a decrease in Revenue. The Revenue has decreased by -0.56% in the last year.
- 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
- The Earnings Per Share is expected to grow by 13.65% 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 3.27% yearly.
EPS Next Y36.76%
EPS Next 2Y18.31%
EPS Next 3Y15.68%
EPS Next 5Y13.65%
Revenue Next Year2.31%
Revenue Next 2Y3.32%
Revenue Next 3Y3.84%
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
- With a Price/Earnings ratio of 12.24, THC is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 84.31% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, THC is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.40, the valuation of THC can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 86.27% of the companies listed in the same industry.
- THC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
- THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 90.20% of the companies in the same industry.
- 82.35% 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 | 11.11 | ||
| EV/EBITDA | 6.03 |
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 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)0.35
EPS Next 2Y18.31%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
- No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:THC (1/22/2026, 9:58:51 AM)
189.92
-0.91 (-0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners98.45%
Inst Owner Change-0.31%
Ins Owners0.73%
Ins Owner Change-1.09%
Market Cap16.69B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target239.23 (25.96%)
Short Float %3.02%
Short Ratio2.95
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)1.49%
PT rev (3m)17.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.4 | ||
| P/S | 0.8 | ||
| P/FCF | 11.11 | ||
| P/OCF | 6.74 | ||
| P/B | 4.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.03 |
EPS(TTM)15.52
EY8.17%
EPS(NY)16.66
Fwd EY8.77%
FCF(TTM)17.09
FCFY9%
OCF(TTM)28.19
OCFY14.85%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.33
PEG (5Y)0.35
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 | 1.84 |
F-Score5
WACC8.74%
ROIC/WACC1.33
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 2Y3.32%
Revenue Next 3Y3.84%
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 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 valuation of TENET HEALTHCARE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TENET HEALTHCARE CORP (THC) is 12.24 and the Price/Book (PB) ratio is 4.16.
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.