TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
NYSE:THC - US88033G4073 - Common Stock
180.04 USD
-0.19 (-0.11%)
180.04 USD
0 (0%)
Overall THC gets a fundamental rating of 6 out of 10. We evaluated THC against 101 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
THC had positive earnings in the past year.
THC had a positive operating cash flow in the past year.
Each year in the past 5 years THC has been profitable.
THC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.17%, THC is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
THC has a Return On Equity of 39.58%. This is amongst the best in the industry. THC outperforms 97.03% of its industry peers.
THC has a better Return On Invested Capital (11.42%) than 86.14% of its industry peers.
THC had an Average Return On Invested Capital over the past 3 years of 9.25%. This is in line with the industry average of 9.14%.
The last Return On Invested Capital (11.42%) for THC is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 39.58% | ||
| ROIC | 11.42% |
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 7.17%, THC belongs to the top of the industry, outperforming 86.14% of the companies in the same industry.
In the last couple of years the Profit Margin of THC has grown nicely.
THC's Operating Margin of 17.01% is amongst the best of the industry. THC outperforms 93.07% of its industry peers.
THC's Operating Margin has improved in the last couple of years.
THC has a better Gross Margin (82.36%) than 96.04% of its industry peers.
THC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.01% | ||
| PM (TTM) | 7.17% | ||
| GM | 82.36% |
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.
Compared to 1 year ago, THC has less shares outstanding
Compared to 5 years ago, THC has less shares outstanding
THC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.82 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
THC has a Altman-Z score (1.82) which is comparable to the rest of the industry.
THC has a debt to FCF ratio of 8.48. This is a slightly negative value and a sign of low solvency as THC would need 8.48 years to pay back of all of its debts.
THC's Debt to FCF ratio of 8.48 is in line compared to the rest of the industry. THC outperforms 57.43% of its industry peers.
A Debt/Equity ratio of 3.49 is on the high side and indicates that THC has dependencies on debt financing.
THC's Debt to Equity ratio of 3.49 is on the low side compared to the rest of the industry. THC is outperformed by 77.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 8.48 | ||
| Altman-Z | 1.82 |
ROIC/WACC1.37
WACC8.31%
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 comparable to the rest of the industry.
A Quick Ratio of 1.63 indicates that THC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.63, THC is in line with its industry, outperforming 58.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.85% over the past year.
Measured over the past years, THC shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.84% on average per year.
The Revenue has decreased by -1.09% in the past year.
The Revenue has been growing slightly by 2.26% on average over the past years.
EPS 1Y (TTM)52.85%
EPS 3Y16.22%
EPS 5Y34.84%
EPS Q2Q%74.03%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.98%
Revenue growth 5Y2.26%
Sales Q2Q%3.29%
3.2 Future
The Earnings Per Share is expected to grow by 12.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y32.9%
EPS Next 2Y16.85%
EPS Next 3Y14.51%
EPS Next 5Y12.43%
Revenue Next Year1.65%
Revenue Next 2Y2.95%
Revenue Next 3Y3.63%
Revenue Next 5Y3.17%
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
THC is valuated correctly with a Price/Earnings ratio of 12.21.
Based on the Price/Earnings ratio, THC is valued cheaply inside the industry as 85.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, THC is valued rather cheaply.
THC is valuated reasonably with a Price/Forward Earnings ratio of 11.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 82.18% of the companies listed in the same industry.
THC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.08 |
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.
86.14% of the companies in the same industry are more expensive than THC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 6.1 |
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 14.51% in the coming years.
PEG (NY)0.37
PEG (5Y)0.35
EPS Next 2Y16.85%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
180.04
-0.19 (-0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.54%
Inst Owner Change-3.17%
Ins Owners0.73%
Ins Owner Change2.23%
Market Cap15.91B
Analysts80
Price Target199.34 (10.72%)
Short Float %3.37%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)38.19%
Min EPS beat(2)37.79%
Max EPS beat(2)38.59%
EPS beat(4)4
Avg EPS beat(4)28.32%
Min EPS beat(4)14.55%
Max EPS beat(4)38.59%
EPS beat(8)8
Avg EPS beat(8)42.77%
EPS beat(12)12
Avg EPS beat(12)37.76%
EPS beat(16)16
Avg EPS beat(16)49.74%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.58%
Max Revenue beat(2)1.13%
Revenue beat(4)3
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)1.13%
Revenue beat(8)6
Avg Revenue beat(8)0.48%
Revenue beat(12)9
Avg Revenue beat(12)0.65%
Revenue beat(16)10
Avg Revenue beat(16)0.04%
PT rev (1m)3.57%
PT rev (3m)12.49%
EPS NQ rev (1m)10.25%
EPS NQ rev (3m)15.59%
EPS NY rev (1m)22.16%
EPS NY rev (3m)23.96%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.77 | ||
| P/FCF | 10.24 | ||
| P/OCF | 6.45 | ||
| P/B | 4.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)14.75
EY8.19%
EPS(NY)16.25
Fwd EY9.03%
FCF(TTM)17.58
FCFY9.76%
OCF(TTM)27.9
OCFY15.5%
SpS234.16
BVpS42.43
TBVpS-96.86
PEG (NY)0.37
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 39.58% | ||
| ROCE | 14.41% | ||
| ROIC | 11.42% | ||
| ROICexc | 12.8% | ||
| ROICexgc | 29.38% | ||
| OM | 17.01% | ||
| PM (TTM) | 7.17% | ||
| GM | 82.36% | ||
| FCFM | 7.51% |
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%
ROICexcg growth 3Y12.5%
ROICexcg 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-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 8.48 | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 111.77% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 4.45 | ||
| Cash Conversion | 56.85% | ||
| Profit Quality | 104.65% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 1.82 |
F-Score6
WACC8.31%
ROIC/WACC1.37
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)52.85%
EPS 3Y16.22%
EPS 5Y34.84%
EPS Q2Q%74.03%
EPS Next Y32.9%
EPS Next 2Y16.85%
EPS Next 3Y14.51%
EPS Next 5Y12.43%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.98%
Revenue growth 5Y2.26%
Sales Q2Q%3.29%
Revenue Next Year1.65%
Revenue Next 2Y2.95%
Revenue Next 3Y3.63%
Revenue Next 5Y3.17%
EBIT growth 1Y14.03%
EBIT growth 3Y13.18%
EBIT growth 5Y13.88%
EBIT Next Year42.16%
EBIT Next 3Y15.27%
EBIT Next 5Y9.1%
FCF growth 1Y61.6%
FCF growth 3Y7.04%
FCF growth 5Y14.67%
OCF growth 1Y38.25%
OCF growth 3Y9.29%
OCF growth 5Y10.67%