TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - NYSE:THC - US88033G4073 - Common Stock
199.23 USD
+2.9 (+1.48%)
199.23 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to THC. THC was compared to 100 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!
1. Profitability
1.1 Basic Checks
In the past year THC was profitable.
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 78.00% of the companies in the same industry.
The Return On Equity of THC (39.58%) is better than 96.00% of its industry peers.
THC has a better Return On Invested Capital (11.42%) than 86.00% 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 9.33%.
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 85.00% of the companies in the same industry.
In the last couple of years the Profit Margin of THC has grown nicely.
THC has a better Operating Margin (17.01%) than 93.00% of its industry peers.
In the last couple of years the Operating Margin of THC has grown nicely.
With an excellent Gross Margin value of 82.36%, THC belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
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
Compared to 1 year ago, THC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.86, THC perfoms like the industry average, outperforming 43.00% of the companies in the same 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 has a Debt to FCF ratio of 8.48. This is comparable to the rest of the industry: THC outperforms 54.00% of its industry peers.
THC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.49, THC is not doing good in the industry: 78.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 8.48 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.34
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.71, THC perfoms like the industry average, outperforming 60.00% 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's Quick ratio of 1.63 is in line compared to the rest of the industry. THC outperforms 59.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
THC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.85%, which is quite impressive.
The Earnings Per Share has been growing by 34.84% on average over the past years. This is a very strong growth
Looking at the last year, THC shows a decrease in Revenue. The Revenue has decreased by -1.09% in the last year.
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 12.43% on average per year.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y32.9%
EPS Next 2Y16.9%
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 13.51, which indicates a correct valuation of THC.
THC's Price/Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 83.00% of the companies in the same industry.
THC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.53.
The Price/Forward Earnings ratio is 12.25, which indicates a correct valuation of THC.
THC's Price/Forward Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 82.00% of the companies in the same industry.
THC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THC is valued cheaper than 89.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
THC's 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)0.41
PEG (5Y)0.39
EPS Next 2Y16.9%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
199.23
+2.9 (+1.48%)
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 Change0.25%
Ins Owners0.76%
Ins Owner Change-1.05%
Market Cap17.60B
Analysts80
Price Target203.14 (1.96%)
Short Float %2.89%
Short Ratio1.87
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)1.91%
PT rev (3m)7.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)29.17%
EPS NY rev (1m)0%
EPS NY rev (3m)22.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.25 | ||
| P/S | 0.85 | ||
| P/FCF | 11.33 | ||
| P/OCF | 7.14 | ||
| P/B | 4.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.49 |
EPS(TTM)14.75
EY7.4%
EPS(NY)16.26
Fwd EY8.16%
FCF(TTM)17.58
FCFY8.82%
OCF(TTM)27.9
OCFY14%
SpS234.16
BVpS42.43
TBVpS-96.86
PEG (NY)0.41
PEG (5Y)0.39
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 | 1.86 |
F-Score6
WACC8.53%
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)52.85%
EPS 3Y16.22%
EPS 5Y34.84%
EPS Q2Q%74.03%
EPS Next Y32.9%
EPS Next 2Y16.9%
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 Year42.82%
EBIT Next 3Y15.38%
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%