TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation
NYSE:THC • US88033G4073
237.42 USD
-3.17 (-1.32%)
At close: Mar 10, 2026
237.4 USD
-0.02 (-0.01%)
After Hours: 3/10/2026, 8:04:00 PM
This THC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. While THC has a great profitability rating, there are some minor concerns on its financial health. THC is not valued too expensively and it also shows a decent growth rate.
1. THC Profitability Analysis
1.1 Basic Checks
- In the past year THC was profitable.
- In the past year THC had a positive cash flow from operations.
- 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
- The Return On Assets of THC (4.74%) is better than 75.25% of its industry peers.
- THC's Return On Equity of 33.34% is amongst the best of the industry. THC outperforms 94.06% of its industry peers.
- With an excellent Return On Invested Capital value of 12.14%, THC belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for THC is in line with the industry average of 8.98%.
- The 3 year average ROIC (10.81%) for THC is below the current ROIC(12.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 33.34% | ||
| ROIC | 12.14% |
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.81%
ROIC(5y)9.72%
1.3 Margins
- With an excellent Profit Margin value of 6.60%, THC belongs to the best of the industry, outperforming 84.16% 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 17.74%, THC belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
- In the last couple of years the Operating Margin of THC has grown nicely.
- With an excellent Gross Margin value of 82.26%, THC belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
- THC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.74% | ||
| PM (TTM) | 6.6% | ||
| GM | 82.26% |
OM growth 3Y14.14%
OM growth 5Y19.99%
PM growth 3Y45.5%
PM growth 5Y23.89%
GM growth 3Y-0.27%
GM growth 5Y-0.2%
2. THC Health Analysis
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.
- THC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for THC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.98 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- THC has a Altman-Z score (1.98) which is comparable to the rest of the industry.
- THC has a debt to FCF ratio of 5.21. This is a neutral value as THC would need 5.21 years to pay back of all of its debts.
- THC's Debt to FCF ratio of 5.21 is fine compared to the rest of the industry. THC outperforms 61.39% of its industry peers.
- THC has a Debt/Equity ratio of 3.10. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.10, THC is doing worse than 75.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.45
WACC8.35%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that THC should not have too much problems paying its short term obligations.
- THC has a Current ratio of 1.76. This is in the better half of the industry: THC outperforms 71.29% of its industry peers.
- THC has a Quick Ratio of 1.68. 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 Quick ratio of 1.68. This is in the better half of the industry: THC outperforms 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.68 |
3. THC Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 41.01% over the past year.
- Measured over the past years, THC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.26% on average per year.
- THC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.12%.
- THC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.85% yearly.
EPS 1Y (TTM)41.01%
EPS 3Y34.93%
EPS 5Y16.26%
EPS Q2Q%36.63%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%8.97%
3.2 Future
- THC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.61% yearly.
- The Revenue is expected to grow by 4.13% on average over the next years.
EPS Next Y2.23%
EPS Next 2Y3.05%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue Next Year3.49%
Revenue Next 2Y2.7%
Revenue Next 3Y3.74%
Revenue Next 5Y4.13%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. THC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.15, which indicates a correct valuation of THC.
- THC's Price/Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 83.17% of the companies in the same industry.
- THC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 13.84, which indicates a correct valuation of THC.
- THC's Price/Forward Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 83.17% of the companies in the same industry.
- THC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
- THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 87.13% 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 86.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates THC does not grow enough to justify the current Price/Earnings ratio.
- THC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.36
PEG (5Y)0.87
EPS Next 2Y3.05%
EPS Next 3Y7.17%
5. THC Dividend Analysis
5.1 Amount
- No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
THC Fundamentals: All Metrics, Ratios and Statistics
237.42
-3.17 (-1.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)04-27 2026-04-27/amc
Inst Owners98.76%
Inst Owner Change-1.8%
Ins Owners1.16%
Ins Owner Change2.26%
Market Cap20.65B
Revenue(TTM)21.31B
Net Income(TTM)1.41B
Analysts81.43
Price Target255.33 (7.54%)
Short Float %3.17%
Short Ratio2.84
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)12.87%
Min EPS beat(2)10.92%
Max EPS beat(2)14.82%
EPS beat(4)4
Avg EPS beat(4)25.53%
Min EPS beat(4)10.92%
Max EPS beat(4)38.59%
EPS beat(8)8
Avg EPS beat(8)35.38%
EPS beat(12)12
Avg EPS beat(12)33.64%
EPS beat(16)16
Avg EPS beat(16)40.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)0%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-0.28%
Max Revenue beat(4)1.13%
Revenue beat(8)5
Avg Revenue beat(8)0.39%
Revenue beat(12)8
Avg Revenue beat(12)0.73%
Revenue beat(16)9
Avg Revenue beat(16)0.21%
PT rev (1m)6.22%
PT rev (3m)8.32%
EPS NQ rev (1m)-6.22%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)3.29%
EPS NY rev (3m)3.26%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 13.84 | ||
| P/S | 0.97 | ||
| P/FCF | 8.16 | ||
| P/OCF | 5.83 | ||
| P/B | 4.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.72 |
EPS(TTM)16.78
EY7.07%
EPS(NY)17.15
Fwd EY7.22%
FCF(TTM)29.09
FCFY12.25%
OCF(TTM)40.71
OCFY17.15%
SpS245.06
BVpS48.53
TBVpS-95.75
PEG (NY)6.36
PEG (5Y)0.87
Graham Number135.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 33.34% | ||
| ROCE | 14.99% | ||
| ROIC | 12.14% | ||
| ROICexc | 13.71% | ||
| ROICexgc | 31.29% | ||
| OM | 17.74% | ||
| PM (TTM) | 6.6% | ||
| GM | 82.26% | ||
| FCFM | 11.87% |
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.81%
ROIC(5y)9.72%
ROICexc(3y)12%
ROICexc(5y)10.68%
ROICexgc(3y)26.71%
ROICexgc(5y)23.47%
ROCE(3y)13.34%
ROCE(5y)12%
ROICexgc growth 3Y20.18%
ROICexgc growth 5Y23.63%
ROICexc growth 3Y17.33%
ROICexc growth 5Y21.67%
OM growth 3Y14.14%
OM growth 5Y19.99%
PM growth 3Y45.5%
PM growth 5Y23.89%
GM growth 3Y-0.27%
GM growth 5Y-0.2%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.21 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 117.03% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 4.37 | ||
| Cash Conversion | 76.24% | ||
| Profit Quality | 179.82% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.98 |
F-Score6
WACC8.35%
ROIC/WACC1.45
Cap/Depr(3y)105.72%
Cap/Depr(5y)96.95%
Cap/Sales(3y)4.3%
Cap/Sales(5y)4.05%
Profit Quality(3y)160.11%
Profit Quality(5y)131.6%
High Growth Momentum
Growth
EPS 1Y (TTM)41.01%
EPS 3Y34.93%
EPS 5Y16.26%
EPS Q2Q%36.63%
EPS Next Y2.23%
EPS Next 2Y3.05%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%8.97%
Revenue Next Year3.49%
Revenue Next 2Y2.7%
Revenue Next 3Y3.74%
Revenue Next 5Y4.13%
EBIT growth 1Y17.54%
EBIT growth 3Y18.23%
EBIT growth 5Y24.61%
EBIT Next Year24.61%
EBIT Next 3Y10.68%
EBIT Next 5Y7.95%
FCF growth 1Y126.7%
FCF growth 3Y99.01%
FCF growth 5Y-2.47%
OCF growth 1Y72.94%
OCF growth 3Y48.41%
OCF growth 5Y0.77%
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 6 / 10 to TENET HEALTHCARE CORP (THC). This can be considered as Fairly Valued.
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 14.15 and the Price/Book (PB) ratio is 4.89.
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 2.23% in the next year.