TENET HEALTHCARE CORP (THC)
US88033G4073 - Common Stock
Taking everything into account, THC scores 5 out of 10 in our fundamental rating. THC was compared to 117 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 has a decent growth rate and is not valued too expensively.
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.
THC had positive earnings in 4 of the past 5 years.
In the past 5 years THC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of THC (2.16%) is better than 67.24% of its industry peers.
THC's Return On Equity of 38.00% is amongst the best of the industry. THC outperforms 96.55% of its industry peers.
THC has a better Return On Invested Capital (9.23%) than 87.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for THC is in line with the industry average of 8.62%.
The 3 year average ROIC (8.25%) for THC is below the current ROIC(9.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 38% | ||
| ROIC | 9.23% |
ROA(3y)2.33%
ROA(5y)1.49%
ROE(3y)54.3%
ROE(5y)N/A
ROIC(3y)8.25%
ROIC(5y)7.19%
1.3 Margins
THC has a Profit Margin of 2.97%. This is in the better half of the industry: THC outperforms 73.28% of its industry peers.
THC's Profit Margin has improved in the last couple of years.
THC has a Operating Margin of 13.61%. This is amongst the best in the industry. THC outperforms 93.10% of its industry peers.
In the last couple of years the Operating Margin of THC has grown nicely.
THC has a better Gross Margin (82.53%) than 95.69% of its industry peers.
THC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.61% | ||
| PM (TTM) | 2.97% | ||
| GM | 82.53% |
OM growth 3Y24.03%
OM growth 5Y9.03%
PM growth 3Y9.55%
PM growth 5Y37.45%
GM growth 3Y-0.23%
GM growth 5Y-0.26%
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.
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 1.36. This is a bad value and indicates that THC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.36, THC is in line with its industry, outperforming 43.97% of the companies in the same industry.
The Debt to FCF ratio of THC is 9.24, which is on the high side as it means it would take THC, 9.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.24, THC is doing good in the industry, outperforming 61.21% of the companies in the same industry.
A Debt/Equity ratio of 9.25 is on the high side and indicates that THC has dependencies on debt financing.
The Debt to Equity ratio of THC (9.25) is worse than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.25 | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.26
WACC7.34%
2.3 Liquidity
THC has a Current Ratio of 1.51. This is a normal value and indicates that THC is financially healthy and should not expect problems in meeting its short term obligations.
THC has a Current ratio (1.51) which is in line with its industry peers.
A Quick Ratio of 1.42 indicates that THC should not have too much problems paying its short term obligations.
THC has a Quick ratio of 1.42. This is in the better half of the industry: THC outperforms 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.20% over the past year.
THC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.28% yearly.
THC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
THC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)2.2%
EPS 3Y-4.04%
EPS 5Y30.28%
EPS growth Q2Q36.73%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.22%
Revenue growth 5Y2.33%
Revenue growth Q2Q7.8%
3.2 Future
THC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.16% yearly.
THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.92% yearly.
EPS Next Y-12.81%
EPS Next 2Y1.09%
EPS Next 3Y6.83%
EPS Next 5Y8.16%
Revenue Next Year-0.91%
Revenue Next 2Y1.73%
Revenue Next 3Y2.93%
Revenue Next 5Y5.92%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
THC is valuated correctly with a Price/Earnings ratio of 13.97.
THC's Price/Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 87.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, THC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.02, THC is valued correctly.
75.00% of the companies in the same industry are more expensive than THC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, THC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 16.02 |
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 93.97% of the companies listed in the same industry.
THC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THC is cheaper than 93.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.01 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
The excellent profitability rating of THC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y1.09%
EPS Next 3Y6.83%
5. Dividend
5.1 Amount
THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TENET HEALTHCARE CORP
NYSE:THC (4/25/2024, 6:00:00 PM)
After market: 97.51 0 (0%)97.51
-0.75 (-0.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 16.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.61% | ||
| PM (TTM) | 2.97% | ||
| GM | 82.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.2%
EPS 3Y-4.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y