TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
198.32 USD
-1.29 (-0.65%)
Taking everything into account, THC scores 6 out of 10 in our fundamental rating. THC was compared to 100 industry peers in the Health Care Providers & Services industry. While THC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. THC may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, THC could be worth investigating further for value investing!.
1. Profitability
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
With a decent Return On Assets value of 4.60%, THC is doing good in the industry, outperforming 74.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.73%, THC belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
THC has a Return On Invested Capital of 11.65%. This is amongst the best in the industry. THC outperforms 85.00% 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 9.19%.
The last Return On Invested Capital (11.65%) for THC is above the 3 year average (9.25%), which is a sign of increasing profitability.
| 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
The Profit Margin of THC (6.49%) is better than 85.00% of its industry peers.
THC's Profit Margin has improved in the last couple of years.
THC has a Operating Margin of 17.52%. This is amongst the best in the industry. THC outperforms 96.00% 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 96.00% of its industry peers.
THC's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for THC has been reduced compared to 5 years ago.
THC has a better debt/assets ratio than last year.
2.2 Solvency
THC has an Altman-Z score of 1.86. 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 (1.86) which is comparable to the rest of the industry.
THC has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as THC would need 8.78 years to pay back of all of its debts.
The Debt to FCF ratio of THC (8.78) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that THC has dependencies on debt financing.
With a Debt to Equity ratio value of 3.26, THC is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.33
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
The Current ratio of THC (1.71) is better than 68.00% of its industry peers.
A Quick Ratio of 1.64 indicates that THC should not have too much problems paying its short term obligations.
THC has a Quick ratio of 1.64. This is in the better half of the industry: THC outperforms 66.00% of its industry peers.
| 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.
THC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.84% yearly.
THC shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
Measured over the past years, THC shows a small growth in Revenue. The Revenue has been growing by 2.26% on average per year.
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.
The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y36.76%
EPS Next 2Y18.31%
EPS Next 3Y15.68%
EPS Next 5Y13.65%
Revenue Next Year2.31%
Revenue Next 2Y3.35%
Revenue Next 3Y3.88%
Revenue Next 5Y3.27%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.78, THC is valued correctly.
Based on the Price/Earnings ratio, THC is valued cheaper than 85.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of THC to the average of the S&P500 Index (27.25), we can say THC is valued rather cheaply.
The Price/Forward Earnings ratio is 11.91, which indicates a very decent valuation of THC.
Based on the Price/Forward Earnings ratio, THC is valued cheaper than 87.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, THC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THC is valued cheaply inside the industry as 91.00% of the companies are valued more expensively.
THC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THC is cheaper than 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
THC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of THC may justify a higher PE ratio.
A more expensive valuation may be justified as THC's earnings are expected to grow with 15.68% in the coming years.
PEG (NY)0.35
PEG (5Y)0.37
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 (1/13/2026, 3:48:01 PM)
198.32
-1.29 (-0.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.45%
Inst Owner Change-0.24%
Ins Owners0.73%
Ins Owner Change-1.09%
Market Cap17.43B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target238.92 (20.47%)
Short Float %3.08%
Short Ratio2.67
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)1.35%
PT rev (3m)17.61%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.84 | ||
| P/FCF | 11.6 | ||
| P/OCF | 7.03 | ||
| P/B | 4.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)15.52
EY7.83%
EPS(NY)16.66
Fwd EY8.4%
FCF(TTM)17.09
FCFY8.62%
OCF(TTM)28.19
OCFY14.22%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.35
PEG (5Y)0.37
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 | 1.86 |
F-Score5
WACC8.78%
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 2Y3.35%
Revenue Next 3Y3.88%
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 12.78 and the Price/Book (PB) ratio is 4.34.
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.