TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - NYSE:THC - US88033G4073 - Common Stock
190.14 USD
-0.15 (-0.08%)
190.14 USD
0 (0%)
Taking everything into account, THC scores 6 out of 10 in our fundamental rating. THC was compared to 101 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years THC has always been profitable.
THC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
THC's Return On Assets of 5.17% is fine compared to the rest of the industry. THC outperforms 79.21% of its industry peers.
Looking at the Return On Equity, with a value of 39.58%, THC belongs to the top of the industry, outperforming 97.03% of the companies in the same industry.
The Return On Invested Capital of THC (11.42%) is better than 86.14% 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 9.19%.
The 3 year average ROIC (9.25%) for THC is below the current ROIC(11.42%), indicating increased profibility in the last year.
| 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
THC's Profit Margin of 7.17% is amongst the best of the industry. THC outperforms 86.14% of its industry peers.
In the last couple of years the Profit Margin of THC has grown nicely.
The Operating Margin of THC (17.01%) is better than 93.07% of its industry peers.
In the last couple of years the Operating Margin of THC has grown nicely.
THC has a Gross Margin of 82.36%. This is amongst the best in 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 | 17.01% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so THC is still creating some value.
THC has less shares outstanding than it did 1 year ago.
THC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for THC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.84 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.84, THC is in line with its industry, outperforming 43.56% of the companies in the same industry.
The Debt to FCF ratio of THC is 8.48, which is on the high side as it means it would take THC, 8.48 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of THC (8.48) is comparable to the rest of the industry.
THC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
THC has a Debt to Equity ratio of 3.49. This is in the lower half of the industry: THC underperforms 76.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 8.48 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.33
WACC8.57%
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 Current ratio (1.71) which is in line with its industry peers.
THC has a Quick Ratio of 1.63. 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 Quick ratio (1.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.85% 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 -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
THC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.43% yearly.
Based on estimates for the next years, THC will show a small growth in Revenue. The Revenue will grow by 3.17% on average per year.
EPS Next Y32.9%
EPS Next 2Y16.85%
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.
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
The Price/Earnings ratio is 12.89, which indicates a correct valuation of THC.
Based on the Price/Earnings ratio, THC is valued cheaply inside the industry as 85.15% of the companies are valued more expensively.
THC is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.70, 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 82.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, THC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 89.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 86.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 6.31 |
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 14.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)0.37
EPS Next 2Y16.85%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
No dividends for THC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
190.14
-0.15 (-0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.54%
Inst Owner Change-3.17%
Ins Owners0.73%
Ins Owner Change-1.05%
Market Cap16.80B
Analysts80
Price Target200.27 (5.33%)
Short Float %2.69%
Short Ratio1.77
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)0.58%
PT rev (3m)8.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.82%
EPS NY rev (1m)22.16%
EPS NY rev (3m)23.96%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 11.7 | ||
| P/S | 0.81 | ||
| P/FCF | 10.82 | ||
| P/OCF | 6.81 | ||
| P/B | 4.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.31 |
EPS(TTM)14.75
EY7.76%
EPS(NY)16.25
Fwd EY8.55%
FCF(TTM)17.58
FCFY9.24%
OCF(TTM)27.9
OCFY14.67%
SpS234.16
BVpS42.43
TBVpS-96.86
PEG (NY)0.39
PEG (5Y)0.37
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 | 1.84 |
F-Score6
WACC8.57%
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)52.85%
EPS 3Y16.22%
EPS 5Y34.84%
EPS Q2Q%74.03%
EPS Next Y32.9%
EPS Next 2Y16.85%
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 Year42.16%
EBIT Next 3Y15.27%
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%