TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
216.84 USD
-0.58 (-0.27%)
216.84 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to THC. THC was compared to 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. These ratings would make THC suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year THC was profitable.
In the past year THC had a positive cash flow from operations.
THC had positive earnings in each of the past 5 years.
In the past 5 years THC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.60%, THC is in the better half of the industry, outperforming 75.25% of the companies in the same industry.
With an excellent Return On Equity value of 33.73%, THC belongs to the best of the industry, outperforming 95.05% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.65%, THC belongs to the best of the industry, outperforming 86.14% 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 9.22%.
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
THC has a Profit Margin of 6.49%. 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's Operating Margin of 17.52% is amongst the best of the industry. THC outperforms 95.05% of its industry peers.
THC's Operating Margin has improved in the last couple of years.
THC's Gross Margin of 82.26% is amongst the best of the industry. THC outperforms 96.04% of its industry peers.
THC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.52% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), THC is creating some value.
THC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, THC has less shares outstanding
Compared to 1 year ago, THC has an improved debt to assets ratio.
2.2 Solvency
THC has an Altman-Z score of 1.89. 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 1.89, THC perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
THC has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as THC would need 8.78 years to pay back of all of its debts.
THC has a Debt to FCF ratio (8.78) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that THC has dependencies on debt financing.
THC has a worse Debt to Equity ratio (3.26) than 77.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.34
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
THC has a better Current ratio (1.71) than 66.34% of its industry peers.
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.
With a decent Quick ratio value of 1.64, THC is doing good in the industry, outperforming 65.35% of the companies in the same industry.
| 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.
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.
THC shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
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)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
THC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.65% yearly.
THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y34.42%
EPS Next 2Y18.24%
EPS Next 3Y15.73%
EPS Next 5Y13.65%
Revenue Next Year2.02%
Revenue Next 2Y3.27%
Revenue Next 3Y3.83%
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
Based on the Price/Earnings ratio of 13.97, the valuation of THC can be described as correct.
Based on the Price/Earnings ratio, THC is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, THC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.03, THC is valued correctly.
THC's Price/Forward Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 83.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. THC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 88.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of THC indicates a somewhat cheap valuation: THC is cheaper than 79.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.69 | ||
| EV/EBITDA | 6.54 |
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 15.73% in the coming years.
PEG (NY)0.41
PEG (5Y)0.4
EPS Next 2Y18.24%
EPS Next 3Y15.73%
5. Dividend
5.1 Amount
THC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
216.84
-0.58 (-0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.28%
Inst Owner Change-2.87%
Ins Owners0.76%
Ins Owner Change-1.44%
Market Cap19.06B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target234.4 (8.1%)
Short Float %3%
Short Ratio2.38
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)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)8.71%
PT rev (3m)17.59%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)1%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.03 | ||
| P/S | 0.91 | ||
| P/FCF | 12.69 | ||
| P/OCF | 7.69 | ||
| P/B | 4.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.54 |
EPS(TTM)15.52
EY7.16%
EPS(NY)16.64
Fwd EY7.67%
FCF(TTM)17.09
FCFY7.88%
OCF(TTM)28.19
OCFY13%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.41
PEG (5Y)0.4
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 | 1.89 |
F-Score5
WACC8.72%
ROIC/WACC1.34
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 Y34.42%
EPS Next 2Y18.24%
EPS Next 3Y15.73%
EPS Next 5Y13.65%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y1.98%
Revenue growth 5Y2.26%
Sales Q2Q%3.26%
Revenue Next Year2.02%
Revenue Next 2Y3.27%
Revenue Next 3Y3.83%
Revenue Next 5Y3.27%
EBIT growth 1Y14.33%
EBIT growth 3Y13.18%
EBIT growth 5Y13.88%
EBIT Next Year42.82%
EBIT Next 3Y15.38%
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 of TENET HEALTHCARE CORP (THC) stock?
ChartMill assigns a valuation rating of 8 / 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 earnings growth outlook for TENET HEALTHCARE CORP?
The Earnings per Share (EPS) of TENET HEALTHCARE CORP (THC) is expected to grow by 34.42% in the next year.
Can you provide the dividend sustainability for THC stock?
The dividend rating of TENET HEALTHCARE CORP (THC) is 0 / 10 and the dividend payout ratio is 0%.