TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
196.74 USD
-4.58 (-2.27%)
199.32 USD
+2.58 (+1.31%)
We assign a fundamental rating of 6 out of 10 to THC. THC was compared to 102 industry peers in the Health Care Providers & Services industry. While THC has a great profitability rating, 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. This makes THC very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year THC was profitable.
- THC had a positive operating cash flow in the past year.
- 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
- The Return On Assets of THC (4.60%) is better than 74.51% of its industry peers.
- THC has a better Return On Equity (33.73%) than 94.12% of its industry peers.
- With an excellent Return On Invested Capital value of 11.65%, THC belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- 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 9.21%.
- 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 85.29% 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.
- In the last couple of years the Operating Margin of THC has grown nicely.
- Looking at the Gross Margin, with a value of 82.26%, THC belongs to the top of the industry, outperforming 96.08% 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 | 17.52% | ||
| 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
- THC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, THC has less shares outstanding
- THC has less shares outstanding than it did 5 years ago.
- THC has a better debt/assets ratio than last year.
2.2 Solvency
- THC has an Altman-Z score of 1.85. 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 (1.85) which is in line with its industry peers.
- 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.
- 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.
- THC has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
- THC has a worse Debt to Equity ratio (3.26) than 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.33
WACC8.73%
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.
- Looking at the Current ratio, with a value of 1.71, THC is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
- 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's Quick ratio of 1.64 is fine compared to the rest of the industry. THC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- THC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.32%, which is quite impressive.
- THC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.84% yearly.
- 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
- The Earnings Per Share is expected to grow by 13.65% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.27% on average over the next years.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- The Price/Earnings ratio is 12.68, which indicates a correct valuation of THC.
- Based on the Price/Earnings ratio, THC is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of THC to the average of the S&P500 Index (27.38), we can say THC is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.81, which indicates a very decent valuation of THC.
- Based on the Price/Forward Earnings ratio, THC is valued cheaply inside the industry as 85.29% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. THC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.81 |
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 90.20% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, THC is valued cheaper than 81.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.51 | ||
| EV/EBITDA | 6.14 |
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)0.34
PEG (5Y)0.36
EPS Next 2Y18.31%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
- No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
196.74
-4.58 (-2.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners98.45%
Inst Owner Change-0.31%
Ins Owners0.73%
Ins Owner Change-1.09%
Market Cap17.29B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target239.23 (21.6%)
Short Float %3.02%
Short Ratio2.95
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)1.49%
PT rev (3m)17.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.81 | ||
| P/S | 0.83 | ||
| P/FCF | 11.51 | ||
| P/OCF | 6.98 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.14 |
EPS(TTM)15.52
EY7.89%
EPS(NY)16.66
Fwd EY8.47%
FCF(TTM)17.09
FCFY8.69%
OCF(TTM)28.19
OCFY14.33%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.34
PEG (5Y)0.36
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 | 1.85 |
F-Score5
WACC8.73%
ROIC/WACC1.33
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 2Y3.32%
Revenue Next 3Y3.84%
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 9 / 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 12.68 and the Price/Book (PB) ratio is 4.31.
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.