TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - NYSE:THC - US88033G4073 - Common Stock
205.26 USD
+1.07 (+0.52%)
205.26 USD
0 (0%)
Taking everything into account, THC scores 6 out of 10 in our fundamental rating. 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, THC could be worth investigating further 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.
Each year in the past 5 years THC had a positive operating cash flow.
1.2 Ratios
THC has a Return On Assets of 4.60%. This is in the better half of the industry: THC outperforms 75.00% of its industry peers.
The Return On Equity of THC (33.73%) is better than 94.00% of its industry peers.
With an excellent Return On Invested Capital value of 11.65%, THC belongs to the best of the industry, outperforming 85.00% 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 9.41%.
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 83.00% 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 95.00% 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 96.00% 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 | 17.52% | ||
| 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
THC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for THC has been reduced compared to 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
An Altman-Z score of 1.87 indicates that THC is not a great score, but indicates only limited risk for bankruptcy at the moment.
THC has a Altman-Z score of 1.87. This is comparable to the rest of the industry: THC outperforms 43.00% of its industry peers.
The Debt to FCF ratio of THC is 8.78, which is on the high side as it means it would take THC, 8.78 years of fcf income to pay off all of its debts.
THC has a Debt to FCF ratio of 8.78. This is comparable to the rest of the industry: THC outperforms 52.00% of its industry peers.
A Debt/Equity ratio of 3.26 is on the high side and indicates that THC has dependencies on debt financing.
With a Debt to Equity ratio value of 3.26, THC is not doing good in the industry: 77.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.3
WACC8.95%
2.3 Liquidity
THC has a Current Ratio of 1.71. This is a normal value and indicates that THC is financially healthy and should not expect problems in meeting its short term obligations.
THC's Current ratio of 1.71 is fine compared to the rest of the industry. THC outperforms 63.00% of its industry peers.
A Quick Ratio of 1.64 indicates that THC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.64, THC is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| 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.
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%.
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.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 13.23, which indicates a correct valuation of THC.
85.00% of the companies in the same industry are more expensive than THC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.06. THC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.34, the valuation of THC can be described as correct.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, THC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
88.00% of the companies in the same industry are more expensive than THC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.07 | ||
| EV/EBITDA | 6.33 |
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.
THC has an outstanding profitability rating, which may justify a higher PE ratio.
THC's earnings are expected to grow with 15.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)0.38
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 |
205.26
+1.07 (+0.52%)
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-0.41%
Ins Owners0.76%
Ins Owner Change-2.13%
Market Cap18.13B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target215.61 (5.04%)
Short Float %2.92%
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)6.14%
PT rev (3m)8.29%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)3.44%
EPS NY rev (1m)1.14%
EPS NY rev (3m)23.56%
Revenue NQ rev (1m)1.62%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 12.34 | ||
| P/S | 0.87 | ||
| P/FCF | 12.07 | ||
| P/OCF | 7.32 | ||
| P/B | 4.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.33 |
EPS(TTM)15.52
EY7.56%
EPS(NY)16.64
Fwd EY8.11%
FCF(TTM)17
FCFY8.28%
OCF(TTM)28.05
OCFY13.66%
SpS236.05
BVpS45.43
TBVpS-96.12
PEG (NY)0.38
PEG (5Y)0.38
Graham Number125.96
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 | 1.87 |
F-Score5
WACC8.95%
ROIC/WACC1.3
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%.