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TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis

NYSE:THC - New York Stock Exchange, Inc. - US88033G4073 - Common Stock - Currency: USD

159.39  -0.9 (-0.56%)

Fundamental Rating

6

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 scores excellent on profitability, 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!


Dividend Valuation Growth Profitability Health

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9

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.
In the past 5 years THC always reported a positive cash flow from operatings.
THC Yearly Net Income VS EBIT VS OCF VS FCFTHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

1.2 Ratios

THC has a Return On Assets of 5.17%. This is in the better half of the industry: THC outperforms 79.61% of its industry peers.
THC has a Return On Equity of 39.58%. This is amongst the best in the industry. THC outperforms 97.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.18%, THC belongs to the top of the industry, outperforming 85.44% 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 9.55%.
The last Return On Invested Capital (11.18%) for THC is above the 3 year average (9.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.17%
ROE 39.58%
ROIC 11.18%
ROA(3y)4.91%
ROA(5y)3.9%
ROE(3y)50.24%
ROE(5y)332.92%
ROIC(3y)9.25%
ROIC(5y)8.01%
THC Yearly ROA, ROE, ROICTHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 1K

1.3 Margins

The Profit Margin of THC (7.17%) is better than 86.41% of its industry peers.
In the last couple of years the Profit Margin of THC has grown nicely.
Looking at the Operating Margin, with a value of 16.65%, THC belongs to the top of the industry, outperforming 92.23% of the companies in the same industry.
THC's Operating Margin has improved in the last couple of years.
THC's Gross Margin of 82.36% is amongst the best of the industry. THC outperforms 95.15% of its industry peers.
THC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.65%
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%
THC Yearly Profit, Operating, Gross MarginsTHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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4

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.
The number of shares outstanding for THC has been reduced compared to 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.
THC Yearly Shares OutstandingTHC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
THC Yearly Total Debt VS Total AssetsTHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

Based on the Altman-Z score of 1.78, we must say that THC is in the distress zone and has some risk of bankruptcy.
THC has a Altman-Z score (1.78) 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.
With a Debt to FCF ratio value of 8.48, THC perfoms like the industry average, outperforming 53.40% of the companies in the same industry.
A Debt/Equity ratio of 3.49 is on the high side and indicates that THC has dependencies on debt financing.
The Debt to Equity ratio of THC (3.49) is worse than 81.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.49
Debt/FCF 8.48
Altman-Z 1.78
ROIC/WACC1.31
WACC8.51%
THC Yearly LT Debt VS Equity VS FCFTHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

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 60.19% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that THC should not have too much problems paying its short term obligations.
THC has a Quick ratio of 1.63. This is in the better half of the industry: THC outperforms 60.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 1.63
THC Yearly Current Assets VS Current LiabilitesTHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 52.85% 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 -1.09%.
Measured over the past years, THC shows a small growth in Revenue. The Revenue has been growing by 2.26% on average per year.
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

Based on estimates for the next years, THC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.82% on average per year.
THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.03% yearly.
EPS Next Y8.8%
EPS Next 2Y7.99%
EPS Next 3Y9.7%
EPS Next 5Y13.82%
Revenue Next Year1.48%
Revenue Next 2Y2.94%
Revenue Next 3Y3.64%
Revenue Next 5Y3.03%

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.
THC Yearly Revenue VS EstimatesTHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
THC Yearly EPS VS EstimatesTHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

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8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.81, the valuation of THC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 85.44% of the companies listed in the same industry.
THC is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.49, the valuation of THC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, THC is valued cheaply inside the industry as 80.58% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, THC is valued rather cheaply.
Industry RankSector Rank
PE 10.81
Fwd PE 11.49
THC Price Earnings VS Forward Price EarningsTHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, THC is valued cheaper than 89.32% of the companies in the same industry.
THC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THC is cheaper than 85.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.53
EV/EBITDA 5.97
THC Per share dataTHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200

4.3 Compensation for Growth

THC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of THC may justify a higher PE ratio.
PEG (NY)1.23
PEG (5Y)0.31
EPS Next 2Y7.99%
EPS Next 3Y9.7%

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0

5. Dividend

5.1 Amount

THC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TENET HEALTHCARE CORP

NYSE:THC (8/6/2025, 11:06:21 AM)

159.39

-0.9 (-0.56%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)07-22 2025-07-22/bmo
Earnings (Next)10-27 2025-10-27/bmo
Inst Owners98.8%
Inst Owner Change-0.31%
Ins Owners0.73%
Ins Owner Change2.46%
Market Cap14.81B
Analysts81.43
Price Target192.47 (20.75%)
Short Float %3.18%
Short Ratio1.68
Dividend
Industry RankSector 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)1.44%
PT rev (3m)10.25%
EPS NQ rev (1m)22.97%
EPS NQ rev (3m)10.27%
EPS NY rev (1m)0%
EPS NY rev (3m)5.42%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)1.05%
Valuation
Industry RankSector Rank
PE 10.81
Fwd PE 11.49
P/S 0.72
P/FCF 9.53
P/OCF 6.01
P/B 3.95
P/tB N/A
EV/EBITDA 5.97
EPS(TTM)14.75
EY9.25%
EPS(NY)13.88
Fwd EY8.71%
FCF(TTM)16.72
FCFY10.49%
OCF(TTM)26.54
OCFY16.65%
SpS222.72
BVpS40.36
TBVpS-92.13
PEG (NY)1.23
PEG (5Y)0.31
Profitability
Industry RankSector Rank
ROA 5.17%
ROE 39.58%
ROCE 14.1%
ROIC 11.18%
ROICexc 12.52%
ROICexgc 28.75%
OM 16.65%
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 RankSector Rank
Debt/Equity 3.49
Debt/FCF 8.48
Debt/EBITDA 3.07
Cap/Depr 111.77%
Cap/Sales 4.41%
Interest Coverage 4.36
Cash Conversion 57.85%
Profit Quality 104.65%
Current Ratio 1.71
Quick Ratio 1.63
Altman-Z 1.78
F-Score6
WACC8.51%
ROIC/WACC1.31
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 Y8.8%
EPS Next 2Y7.99%
EPS Next 3Y9.7%
EPS Next 5Y13.82%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.98%
Revenue growth 5Y2.26%
Sales Q2Q%3.29%
Revenue Next Year1.48%
Revenue Next 2Y2.94%
Revenue Next 3Y3.64%
Revenue Next 5Y3.03%
EBIT growth 1Y11.6%
EBIT growth 3Y13.18%
EBIT growth 5Y13.88%
EBIT Next Year32.48%
EBIT Next 3Y14.24%
EBIT Next 5Y9.71%
FCF growth 1Y61.6%
FCF growth 3Y7.04%
FCF growth 5Y14.67%
OCF growth 1Y38.25%
OCF growth 3Y9.29%
OCF growth 5Y10.67%