TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
201.2 USD
-2.15 (-1.06%)
199.531 USD
-1.67 (-0.83%)
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. A decent growth rate in combination with a cheap valuation! Better keep an eye on THC. This makes THC very considerable for value investing!
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.
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 74.26% of the companies in the same industry.
THC has a better Return On Equity (33.73%) than 94.06% of its industry peers.
With an excellent Return On Invested Capital value of 11.65%, THC belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for THC is in line with the industry average of 9.19%.
The 3 year average ROIC (9.25%) for THC is below the current ROIC(11.65%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 6.49%, THC belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
In the last couple of years the Profit Margin of THC has grown nicely.
The Operating Margin of THC (17.52%) is better than 96.04% 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 96.04% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so THC is still 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.
Compared to 1 year ago, THC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.86, THC perfoms like the industry average, outperforming 43.56% of the companies in the same industry.
The Debt to FCF ratio of THC is 8.78, which is on the high side as it means it would take THC, 8.78 years of fcf income to pay off all of its debts.
THC's Debt to FCF ratio of 8.78 is in line compared to the rest of the industry. THC outperforms 49.51% of its industry peers.
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 75.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.32
WACC8.8%
2.3 Liquidity
THC has a Current Ratio of 1.71. This is a normal value and indicates that THC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of THC (1.71) is better than 68.32% 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.
The Quick ratio of THC (1.64) is better than 66.34% 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.
The Revenue has decreased by -0.56% in the past year.
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
The Earnings Per Share is expected to grow by 13.65% on average over the next years. This is quite good.
THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.96, THC is valued correctly.
84.16% of the companies in the same industry are more expensive than THC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, THC is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.08, THC is valued correctly.
86.14% of the companies in the same industry are more expensive than THC, based on the Price/Forward Earnings ratio.
THC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THC is valued cheaper than 90.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 82.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| EV/EBITDA | 6.23 |
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.
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
THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
201.2
-2.15 (-1.06%)
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 Cap17.68B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target238.92 (18.75%)
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 | 12.96 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.85 | ||
| P/FCF | 11.77 | ||
| P/OCF | 7.14 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.23 |
EPS(TTM)15.52
EY7.71%
EPS(NY)16.66
Fwd EY8.28%
FCF(TTM)17.09
FCFY8.49%
OCF(TTM)28.19
OCFY14.01%
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
WACC8.8%
ROIC/WACC1.32
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 8 / 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 12.96 and the Price/Book (PB) ratio is 4.41.
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.