TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation
NYSE:THC • US88033G4073
240.59 USD
+3.64 (+1.54%)
At close: Mar 9, 2026
240.59 USD
0 (0%)
After Hours: 3/9/2026, 4:52:58 PM
This THC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, THC scores 6 out of 10 in our fundamental rating. THC was compared to 101 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 has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years THC has been profitable.
- In the past 5 years THC always reported a positive cash flow from operatings.
1.2 Ratios
- THC has a better Return On Assets (4.74%) than 75.25% of its industry peers.
- THC has a better Return On Equity (33.34%) than 94.06% of its industry peers.
- THC's Return On Invested Capital of 12.14% is amongst the best of the industry. THC outperforms 86.14% 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 9.04%.
- 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
- THC has a Profit Margin of 6.60%. This is amongst the best in the industry. THC outperforms 84.16% of its industry peers.
- In the last couple of years the Profit Margin of THC has grown nicely.
- THC has a Operating Margin of 17.74%. This is amongst the best in the industry. THC outperforms 96.04% of its industry peers.
- THC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 82.26%, THC belongs to the top of the industry, outperforming 96.04% 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.
- THC has a better debt/assets ratio than last year.
2.2 Solvency
- THC has an Altman-Z score of 1.97. 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.
- With a Altman-Z score value of 1.97, THC perfoms like the industry average, outperforming 51.49% 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.
- Looking at the Debt to FCF ratio, with a value of 5.21, THC is in the better half of the industry, outperforming 61.39% of the companies in the same industry.
- A Debt/Equity ratio of 3.10 is on the high side and indicates that THC has dependencies on debt 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 75.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.46
WACC8.33%
2.3 Liquidity
- THC has a Current Ratio of 1.76. This is a normal value and indicates that THC is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.76, THC is doing good in the industry, outperforming 71.29% of the companies in the same industry.
- A Quick Ratio of 1.68 indicates that THC should not have too much problems paying its short term obligations.
- The Quick ratio of THC (1.68) is better than 69.31% 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.
- Measured over the past years, THC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.26% on average per year.
- THC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.12%.
- THC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.85% yearly.
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.
- THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.13% yearly.
EPS Next Y2.23%
EPS Next 2Y3.05%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue Next Year3.49%
Revenue Next 2Y2.7%
Revenue Next 3Y3.74%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. THC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.34, which indicates a correct valuation of THC.
- 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 26.29, THC is valued a bit cheaper.
- A Price/Forward Earnings ratio of 14.03 indicates a correct 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 83.17% 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 (24.60), we can say THC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THC indicates a rather cheap valuation: THC is cheaper than 87.13% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, THC is valued cheaper than 86.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- THC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.44
PEG (5Y)0.88
EPS Next 2Y3.05%
EPS Next 3Y7.17%
5. THC Dividend Analysis
5.1 Amount
- No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
THC Fundamentals: All Metrics, Ratios and Statistics
240.59
+3.64 (+1.54%)
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)04-27 2026-04-27/amc
Inst Owners98.76%
Inst Owner Change-1.8%
Ins Owners1.16%
Ins Owner Change2.26%
Market Cap20.92B
Revenue(TTM)21.31B
Net Income(TTM)1.41B
Analysts81.43
Price Target255.33 (6.13%)
Short Float %3.17%
Short Ratio2.84
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)6.22%
PT rev (3m)8.32%
EPS NQ rev (1m)-6.22%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)3.29%
EPS NY rev (3m)3.26%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 14.03 | ||
| P/S | 0.98 | ||
| P/FCF | 8.27 | ||
| P/OCF | 5.91 | ||
| P/B | 4.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.65 |
EPS(TTM)16.78
EY6.97%
EPS(NY)17.15
Fwd EY7.13%
FCF(TTM)29.09
FCFY12.09%
OCF(TTM)40.71
OCFY16.92%
SpS245.06
BVpS48.53
TBVpS-95.75
PEG (NY)6.44
PEG (5Y)0.88
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 | 1.97 |
F-Score6
WACC8.33%
ROIC/WACC1.46
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 Year3.49%
Revenue Next 2Y2.7%
Revenue Next 3Y3.74%
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 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 6 / 10 to TENET HEALTHCARE CORP (THC). This can be considered as Fairly Valued.
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 14.34 and the Price/Book (PB) ratio is 4.96.
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.