THC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 103 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 valued quite cheap, while showing a decent growth score. This is a good combination! This makes THC very considerable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

THC had positive earnings in the past year.
In the past year THC had a positive cash flow from operations.
THC had positive earnings in each of the past 5 years.
Each year in the past 5 years THC had a positive operating cash flow.

1.2 Ratios

THC has a Return On Assets of 4.60%. This is in the better half of the industry: THC outperforms 74.51% of its industry peers.
Looking at the Return On Equity, with a value of 33.73%, THC belongs to the top of the industry, outperforming 94.12% 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 85.29% 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 9.21%.
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

Looking at the Profit Margin, with a value of 6.49%, THC belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
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 96.08% of its industry peers.
THC's Operating Margin has improved in the last couple of years.
THC has a Gross Margin of 82.26%. This is amongst the best in the industry. THC outperforms 96.08% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so THC is still creating some value.
Compared to 1 year ago, THC has less shares outstanding
Compared to 5 years ago, THC has less shares outstanding
Compared to 1 year ago, THC has an improved debt to assets ratio.

2.2 Solvency

THC has an Altman-Z score of 1.84. 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 of 1.84. This is comparable to the rest of the industry: THC outperforms 44.12% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 8.78, THC is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that THC has dependencies on debt financing.
THC's Debt to Equity ratio of 3.26 is on the low side compared to the rest of the industry. THC is outperformed by 74.51% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.26
Debt/FCF	8.78
Altman-Z	1.84

ROIC/WACC1.34

WACC8.7%

2.3 Liquidity

A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
THC has a Current ratio of 1.71. This is in the better half of the industry: THC outperforms 68.63% of its industry peers.
THC has a Quick Ratio of 1.64. 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 better Quick ratio (1.64) than 66.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.71
Quick Ratio	1.64

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 39.32% over the past year.
The Earnings Per Share has been growing by 34.84% on average over the past years. This is a very strong growth
THC shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
The Revenue has been growing slightly by 2.26% on average over the past years.

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

THC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.65% yearly.
Based on estimates for the next years, THC will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.

EPS Next Y36.76%

EPS Next 2Y18.31%

EPS Next 3Y15.68%

EPS Next 5Y13.65%

Revenue Next Year2.31%

Revenue Next 2Y3.32%

Revenue Next 3Y3.84%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.16 indicates a correct valuation of THC.
84.31% of the companies in the same industry are more expensive than THC, based on the Price/Earnings ratio.
THC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 11.33, the valuation of THC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 87.25% of the companies listed in the same industry.
THC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	12.16
Fwd PE	11.33

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, THC is valued cheaply inside the industry as 90.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	11.05
EV/EBITDA	6

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
THC has an outstanding profitability rating, which 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.