TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation
NYSE:THC • US88033G4073
Current stock price
192.99 USD
-2.25 (-1.15%)
At close:
192.99 USD
0 (0%)
After Hours:
This THC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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
- THC has a Return On Assets of 4.74%. This is in the better half of the industry: THC outperforms 75.00% of its industry peers.
- THC's Return On Equity of 33.34% is amongst the best of the industry. THC outperforms 96.00% of its industry peers.
- THC's Return On Invested Capital of 12.14% is amongst the best of the industry. THC outperforms 87.00% of its industry peers.
- THC had an Average Return On Invested Capital over the past 3 years of 10.81%. This is above the industry average of 8.51%.
- The last Return On Invested Capital (12.14%) for THC is above the 3 year average (10.81%), which is a sign of increasing profitability.
| 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
- The Profit Margin of THC (6.60%) is better than 84.00% of its industry peers.
- THC's Profit Margin has improved in the last couple of years.
- THC has a Operating Margin of 17.74%. This is amongst the best in the industry. THC outperforms 95.00% of its industry peers.
- THC's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 82.26%, THC belongs to the best of the industry, outperforming 97.00% 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 | 17.74% | ||
| 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
- 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.
- The number of shares outstanding for THC has been reduced compared to 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 1.88 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.88, THC is in line with its industry, outperforming 48.00% of the companies in the same 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.
- With a Debt to FCF ratio value of 5.21, THC perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
- THC has a Debt/Equity ratio of 3.10. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of THC (3.10) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.38
WACC8.8%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that THC should not have too much problems paying its short term obligations.
- The Current ratio of THC (1.76) is better than 70.00% of its industry peers.
- A Quick Ratio of 1.68 indicates that THC should not have too much problems paying its short term obligations.
- THC has a better Quick ratio (1.68) than 69.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.68 |
3. THC Growth Analysis
3.1 Past
- THC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.01%, which is quite impressive.
- THC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.26% yearly.
- The Revenue has been growing slightly by 3.12% in the past year.
- The Revenue has been growing slightly by 3.85% on average over the past years.
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
- The Earnings Per Share is expected to grow by 3.61% on average over the next years.
- The Revenue is expected to grow by 4.13% on average over the next years.
EPS Next Y2.32%
EPS Next 2Y3.18%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue Next Year3.5%
Revenue Next 2Y2.69%
Revenue Next 3Y3.67%
Revenue Next 5Y4.13%
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.
- 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
- A Price/Earnings ratio of 11.50 indicates a reasonable valuation of THC.
- 88.00% of the companies in the same industry are more expensive than THC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of THC to the average of the S&P500 Index (26.86), we can say THC is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.24 indicates a reasonable valuation of THC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 86.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of THC to the average of the S&P500 Index (37.39), we can say THC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, THC is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
- 91.00% 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 | 6.63 | ||
| EV/EBITDA | 5.87 |
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.
- The excellent profitability rating of THC may justify a higher PE ratio.
PEG (NY)4.95
PEG (5Y)0.71
EPS Next 2Y3.18%
EPS Next 3Y7.17%
5. THC Dividend Analysis
5.1 Amount
- THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
THC Fundamentals: All Metrics, Ratios and Statistics
192.99
-2.25 (-1.15%)
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)04-30 2026-04-30/amc
Inst Owners99.01%
Inst Owner Change0%
Ins Owners1.08%
Ins Owner Change3.82%
Market Cap16.78B
Revenue(TTM)21.31B
Net Income(TTM)1.41B
Analysts81.43
Price Target262.79 (36.17%)
Short Float %2.89%
Short Ratio2.32
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)2.92%
PT rev (3m)9.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.94%
EPS NY rev (1m)0.1%
EPS NY rev (3m)3.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.79 | ||
| P/FCF | 6.63 | ||
| P/OCF | 4.74 | ||
| P/B | 3.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.87 |
EPS(TTM)16.78
EY8.69%
EPS(NY)17.17
Fwd EY8.9%
FCF(TTM)29.09
FCFY15.08%
OCF(TTM)40.71
OCFY21.09%
SpS245.06
BVpS48.53
TBVpS-95.75
PEG (NY)4.95
PEG (5Y)0.71
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 | 1.88 |
F-Score6
WACC8.8%
ROIC/WACC1.38
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 Y2.32%
EPS Next 2Y3.18%
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 Year3.5%
Revenue Next 2Y2.69%
Revenue Next 3Y3.67%
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 Fundamental Analysis FAQ
What is the ChartMill fundamental rating of TENET HEALTHCARE CORP (THC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to THC.
Can you provide the valuation status for TENET HEALTHCARE CORP?
ChartMill assigns a valuation rating of 8 / 10 to TENET HEALTHCARE CORP (THC). This can be considered as Undervalued.
What is the profitability of THC stock?
TENET HEALTHCARE CORP (THC) has a profitability rating of 9 / 10.
How financially healthy is TENET HEALTHCARE CORP?
The financial health rating of TENET HEALTHCARE CORP (THC) is 5 / 10.
Is the dividend of TENET HEALTHCARE CORP sustainable?
The dividend rating of TENET HEALTHCARE CORP (THC) is 0 / 10 and the dividend payout ratio is 0%.