TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation

NYSE:THC • US88033G4073

Current stock price

191.86 USD
-3.6 (-1.84%)
At close:
191.86 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.

9

1. THC Profitability Analysis

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.
  • In the past 5 years THC always reported a positive cash flow from operatings.
THC Yearly Net Income VS EBIT VS OCF VS FCFTHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • With a decent Return On Assets value of 4.74%, THC is doing good in the industry, outperforming 74.00% of the companies in the same industry.
  • The Return On Equity of THC (33.34%) is better than 95.00% of its industry peers.
  • With an excellent Return On Invested Capital value of 12.14%, THC belongs to the best of the industry, outperforming 86.00% 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 8.85%.
  • 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 RankSector 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%
THC Yearly ROA, ROE, ROICTHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 1K

1.3 Margins

  • THC's Profit Margin of 6.60% is amongst the best of the industry. THC outperforms 83.00% of its industry peers.
  • 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 95.00% of the companies in the same industry.
  • THC's Operating Margin has improved in the last couple of years.
  • THC has a better Gross Margin (82.26%) than 96.00% of its industry peers.
  • THC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
THC Yearly Profit, Operating, Gross MarginsTHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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5

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.
  • The number of shares outstanding for THC has been reduced compared to 1 year ago.
  • The number of shares outstanding for THC has been reduced compared to 5 years ago.
  • Compared to 1 year ago, THC has an improved debt to assets ratio.
THC Yearly Shares OutstandingTHC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
THC Yearly Total Debt VS Total AssetsTHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • THC has an Altman-Z score of 1.88. 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.
  • 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.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 5.21, THC is in line with its industry, outperforming 59.00% 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.
  • THC's Debt to Equity ratio of 3.10 is on the low side compared to the rest of the industry. THC is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.1
Debt/FCF 5.21
Altman-Z 1.88
ROIC/WACC1.4
WACC8.69%
THC Yearly LT Debt VS Equity VS FCFTHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.76 indicates that THC should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.76, THC is doing good in the industry, outperforming 72.00% of the companies in the same industry.
  • 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.
  • The Quick ratio of THC (1.68) is better than 71.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.68
THC Yearly Current Assets VS Current LiabilitesTHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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4

3. THC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 41.01% over the past year.
  • The Earnings Per Share has been growing by 16.26% on average over the past years. This is quite good.
  • 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

  • Based on estimates for the next years, THC will show a small growth in Earnings Per Share. The EPS will grow by 3.61% on average per year.
  • Based on estimates for the next years, THC will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y2.23%
EPS Next 2Y3.05%
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.
THC Yearly Revenue VS EstimatesTHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
THC Yearly EPS VS EstimatesTHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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7

4. THC Valuation Analysis

4.1 Price/Earnings Ratio

  • THC is valuated reasonably with a Price/Earnings ratio of 11.43.
  • Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 87.00% of the companies listed in the same industry.
  • THC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.88.
  • A Price/Forward Earnings ratio of 11.18 indicates a reasonable valuation of THC.
  • 83.00% 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 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.43
Fwd PE 11.18
THC Price Earnings VS Forward Price EarningsTHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, THC is valued cheaper than 90.00% of the companies in the same industry.
  • 91.00% of the companies in the same industry are more expensive than THC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.59
EV/EBITDA 5.88
THC Per share dataTHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of THC may justify a higher PE ratio.
PEG (NY)5.14
PEG (5Y)0.7
EPS Next 2Y3.05%
EPS Next 3Y7.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. THC Dividend Analysis

5.1 Amount

  • No dividends for THC!.
Industry RankSector Rank
Dividend Yield 0%

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THC Fundamentals: All Metrics, Ratios and Statistics

TENET HEALTHCARE CORP

NYSE:THC (3/27/2026, 8:04:00 PM)

After market: 191.86 0 (0%)

191.86

-3.6 (-1.84%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-11
Earnings (Next)04-27
Inst Owners98.76%
Inst Owner Change-1.8%
Ins Owners1.16%
Ins Owner Change3.82%
Market Cap16.68B
Revenue(TTM)21.31B
Net Income(TTM)1.41B
Analysts81.43
Price Target258.22 (34.59%)
Short Float %3.05%
Short Ratio2.53
Dividend
Industry RankSector 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)-0.56%
EPS NQ rev (3m)-5.94%
EPS NY rev (1m)3.29%
EPS NY rev (3m)3.26%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.86%
Valuation
Industry RankSector Rank
PE 11.43
Fwd PE 11.18
P/S 0.78
P/FCF 6.59
P/OCF 4.71
P/B 3.95
P/tB N/A
EV/EBITDA 5.88
EPS(TTM)16.78
EY8.75%
EPS(NY)17.15
Fwd EY8.94%
FCF(TTM)29.09
FCFY15.16%
OCF(TTM)40.71
OCFY21.22%
SpS245.06
BVpS48.53
TBVpS-95.75
PEG (NY)5.14
PEG (5Y)0.7
Graham Number135.36
Profitability
Industry RankSector 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 RankSector 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
WACC8.69%
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 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 Year3.5%
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.


What is the valuation status for THC stock?

ChartMill assigns a valuation rating of 7 / 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 11.43 and the Price/Book (PB) ratio is 3.95.


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.