TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation
NYSE:THC • US88033G4073
236.95 USD
-4.45 (-1.84%)
At close: Mar 6, 2026
236.95 USD
0 (0%)
After Hours: 3/6/2026, 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.
Taking everything into account, THC scores 6 out of 10 in our fundamental rating. THC was compared to 101 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 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.
- THC had a positive operating cash flow in the past year.
- Each year in the past 5 years THC has been profitable.
- THC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- THC has a Return On Assets of 4.74%. This is in the better half of the industry: THC outperforms 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.
- THC has a Return On Invested Capital of 11.83%. This is amongst the best in the industry. THC outperforms 86.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for THC is in line with the industry average of 9.07%.
- The 3 year average ROIC (10.41%) for THC is below the current ROIC(11.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 33.34% | ||
| ROIC | 11.83% |
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.41%
ROIC(5y)9.48%
1.3 Margins
- The Profit Margin of THC (6.60%) is better than 84.16% of its industry peers.
- In the last couple of years the Profit Margin of THC has grown nicely.
- The Operating Margin of THC (17.28%) is better than 96.04% of its industry peers.
- In the last couple of years the Operating Margin of THC has grown nicely.
- Looking at the Gross Margin, with a value of 82.26%, THC belongs to the top of the industry, outperforming 96.04% 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 | 17.28% | ||
| PM (TTM) | 6.6% | ||
| GM | 82.26% |
OM growth 3Y10.6%
OM growth 5Y17.74%
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.
- THC has less shares outstanding than it did 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
- THC has an Altman-Z score of 1.97. This is not the best score and indicates that THC is in the grey zone with still only limited risk for bankruptcy at the moment.
- THC has a Altman-Z score (1.97) which is comparable to the rest of the industry.
- The Debt to FCF ratio of THC is 5.21, which is a neutral value as it means it would take THC, 5.21 years of fcf income to pay off all of its debts.
- THC has a better Debt to FCF ratio (5.21) than 62.38% 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 | 1.97 |
ROIC/WACC1.4
WACC8.46%
2.3 Liquidity
- THC has a Current Ratio of 1.76. This is a normal value and indicates that THC is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.76, THC is doing good in the industry, outperforming 71.29% of the companies in the same industry.
- A Quick Ratio of 1.68 indicates that THC should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.68, THC is in the better half of the industry, outperforming 69.31% of the companies in the same industry.
| 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%.
- Measured over the past years, THC shows a small growth in Revenue. The Revenue has been growing by 3.85% on average per year.
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
- Based on estimates for the next years, THC will show a small growth in Earnings Per Share. The EPS will grow by 2.62% on average per year.
- Based on estimates for the next years, THC will show a small growth in Revenue. The Revenue will grow by 3.43% on average per year.
EPS Next Y-1.03%
EPS Next 2Y3.47%
EPS Next 3Y6.93%
EPS Next 5Y2.62%
Revenue Next Year3.93%
Revenue Next 2Y3.18%
Revenue Next 3Y3.48%
Revenue Next 5Y3.43%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. THC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.12, 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.
- The average S&P500 Price/Earnings ratio is at 26.29. THC is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 14.27, THC is valued correctly.
- 83.17% of the companies in the same industry are more expensive than THC, based on the Price/Forward Earnings ratio.
- THC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 14.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THC indicates a rather cheap valuation: THC is cheaper than 87.13% of the companies listed in the same industry.
- THC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THC is cheaper than 87.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.23 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
- THC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y3.47%
EPS Next 3Y6.93%
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
236.95
-4.45 (-1.84%)
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-2.1%
Ins Owners1.16%
Ins Owner Change6.19%
Market Cap20.61B
Revenue(TTM)21.31B
Net Income(TTM)1.41B
Analysts81.43
Price Target255.33 (7.76%)
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)6.73%
PT rev (3m)8.93%
EPS NQ rev (1m)-6.22%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)0.36%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 14.27 | ||
| P/S | 0.98 | ||
| P/FCF | 8.23 | ||
| P/OCF | 5.88 | ||
| P/B | 4.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)16.78
EY7.08%
EPS(NY)16.61
Fwd EY7.01%
FCF(TTM)28.79
FCFY12.15%
OCF(TTM)40.28
OCFY17%
SpS242.46
BVpS48.01
TBVpS-94.73
PEG (NY)N/A
PEG (5Y)0.87
Graham Number134.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 33.34% | ||
| ROCE | 14.6% | ||
| ROIC | 11.83% | ||
| ROICexc | 13.35% | ||
| ROICexgc | 30.47% | ||
| OM | 17.28% | ||
| 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)10.41%
ROIC(5y)9.48%
ROICexc(3y)11.56%
ROICexc(5y)10.42%
ROICexgc(3y)25.7%
ROICexgc(5y)22.87%
ROCE(3y)12.86%
ROCE(5y)11.71%
ROICexgc growth 3Y16.45%
ROICexgc growth 5Y21.31%
ROICexc growth 3Y13.69%
ROICexc growth 5Y19.39%
OM growth 3Y10.6%
OM growth 5Y17.74%
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 | 2.88 | ||
| Cap/Depr | 117.03% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 4.26 | ||
| Cash Conversion | 77.89% | ||
| Profit Quality | 179.82% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.97 |
F-Score6
WACC8.46%
ROIC/WACC1.4
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 Y-1.03%
EPS Next 2Y3.47%
EPS Next 3Y6.93%
EPS Next 5Y2.62%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%8.97%
Revenue Next Year3.93%
Revenue Next 2Y3.18%
Revenue Next 3Y3.48%
Revenue Next 5Y3.43%
EBIT growth 1Y14.49%
EBIT growth 3Y14.57%
EBIT growth 5Y22.28%
EBIT Next Year24.61%
EBIT Next 3Y10.68%
EBIT Next 5Y6.81%
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 14.12 and the Price/Book (PB) ratio is 4.93.
Can you provide the expected EPS growth for THC stock?
The Earnings per Share (EPS) of TENET HEALTHCARE CORP (THC) is expected to decline by -1.03% in the next year.