TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
197.77 USD
-0.99 (-0.5%)
197.77 USD
0 (0%)
Taking everything into account, THC scores 6 out of 10 in our fundamental rating. THC was compared to 102 industry peers in the Health Care Providers & Services industry. THC has an excellent profitability rating, but there are some minor concerns on its financial health. THC may be a bit undervalued, certainly considering the very reasonable score on growth 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
The Return On Assets of THC (4.60%) is better than 73.53% of its industry peers.
THC's Return On Equity of 33.73% is amongst the best of the industry. THC outperforms 94.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.65%, THC belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for THC is in line with the industry average of 9.61%.
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 better Profit Margin (6.49%) than 84.31% of its industry peers.
In the last couple of years the Profit Margin of THC has grown nicely.
The Operating Margin of THC (17.52%) is better than 95.10% of its industry peers.
THC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 82.26%, THC belongs to the best 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
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
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.
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.
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 75.49% 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
A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.71, THC is doing good in the industry, outperforming 66.67% 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.
The Quick ratio of THC (1.64) is better than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.32% over the past year.
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%.
THC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.26% yearly.
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
Based on estimates for the next years, THC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.65% on average per year.
The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y36.71%
EPS Next 2Y18.15%
EPS Next 3Y15.68%
EPS Next 5Y13.65%
Revenue Next Year2.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.88%
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
A Price/Earnings ratio of 12.74 indicates a correct valuation of THC.
Based on the Price/Earnings ratio, THC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, THC is valued rather cheaply.
THC is valuated reasonably with a Price/Forward Earnings ratio of 11.91.
THC's Price/Forward Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 86.27% of the companies in the same industry.
THC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THC is valued cheaply inside the industry as 90.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 81.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 6.16 |
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.
THC's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)0.37
EPS Next 2Y18.15%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
197.77
-0.99 (-0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change-2.86%
Ins Owners0.73%
Ins Owner Change-1.27%
Market Cap17.38B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price TargetN/A
Short Float %3.33%
Short Ratio2.82
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)9.33%
PT rev (3m)17.71%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)1.7%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.83 | ||
| P/FCF | 11.57 | ||
| P/OCF | 7.01 | ||
| P/B | 4.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.16 |
EPS(TTM)15.52
EY7.85%
EPS(NY)16.61
Fwd EY8.4%
FCF(TTM)17.09
FCFY8.64%
OCF(TTM)28.19
OCFY14.26%
SpS237.29
BVpS45.67
TBVpS-96.62
PEG (NY)0.35
PEG (5Y)0.37
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 Y36.71%
EPS Next 2Y18.15%
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 Year2.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.88%
Revenue Next 5Y3.27%
EBIT growth 1Y14.33%
EBIT growth 3Y13.18%
EBIT growth 5Y13.88%
EBIT Next Year44.5%
EBIT Next 3Y16.03%
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 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 earnings growth outlook for TENET HEALTHCARE CORP?
The Earnings per Share (EPS) of TENET HEALTHCARE CORP (THC) is expected to grow by 36.71% 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%.