TENET HEALTHCARE CORP (THC) Fundamental Analysis & Valuation

NYSE:THC • US88033G4073

Current stock price

183.27 USD
+6.15 (+3.47%)
At close:
183.27 USD
0 (0%)
After Hours:

This THC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. THC Profitability Analysis

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.
  • In the past 5 years THC always reported a positive cash flow from operatings.
THC Yearly Net Income VS EBIT VS OCF VS FCFTHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • THC's Return On Assets of 5.46% is fine compared to the rest of the industry. THC outperforms 76.24% of its industry peers.
  • THC has a better Return On Equity (35.38%) than 96.04% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.21%, THC belongs to the best of the industry, outperforming 89.11% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for THC is above the industry average of 8.40%.
  • The 3 year average ROIC (10.81%) for THC is below the current ROIC(13.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.46%
ROE 35.38%
ROIC 13.21%
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.81%
ROIC(5y)9.72%
THC Yearly ROA, ROE, ROICTHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.79%, THC belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
  • THC's Profit Margin has improved in the last couple of years.
  • THC's Operating Margin of 18.69% is amongst the best of the industry. THC outperforms 97.03% of its industry peers.
  • In the last couple of years the Operating Margin of THC has grown nicely.
  • THC's Gross Margin of 82.47% is amongst the best of the industry. THC outperforms 97.03% of its industry peers.
  • THC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 18.69%
PM (TTM) 7.79%
GM 82.47%
OM growth 3Y14.14%
OM growth 5Y19.99%
PM growth 3Y45.5%
PM growth 5Y23.89%
GM growth 3Y-0.27%
GM growth 5Y-0.2%
THC Yearly Profit, Operating, Gross MarginsTHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. THC Health Analysis

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.
THC Yearly Shares OutstandingTHC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
THC Yearly Total Debt VS Total AssetsTHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 1.81, we must say that THC is in the distress zone and has some risk of bankruptcy.
  • THC has a Altman-Z score (1.81) which is in line with its industry peers.
  • THC has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as THC would need 3.94 years to pay back of all of its debts.
  • The Debt to FCF ratio of THC (3.94) is better than 66.34% of its industry peers.
  • A Debt/Equity ratio of 2.73 is on the high side and indicates that THC has dependencies on debt financing.
  • THC has a worse Debt to Equity ratio (2.73) than 75.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.73
Debt/FCF 3.94
Altman-Z 1.81
ROIC/WACC1.47
WACC8.96%
THC Yearly LT Debt VS Equity VS FCFTHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • THC has a Current Ratio of 1.36. 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 Current ratio (1.36) which is in line with its industry peers.
  • THC has a Quick Ratio of 1.30. 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 Quick ratio value of 1.30, THC perfoms like the industry average, outperforming 53.47% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.3
THC Yearly Current Assets VS Current LiabilitesTHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. THC Growth Analysis

3.1 Past

  • THC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.21%, which is quite impressive.
  • THC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.26% yearly.
  • Looking at the last year, THC shows a small growth in Revenue. The Revenue has grown by 6.57% in the last year.
  • Measured over the past years, THC shows a small growth in Revenue. The Revenue has been growing by 3.85% on average per year.
EPS 1Y (TTM)32.21%
EPS 3Y34.93%
EPS 5Y16.26%
EPS Q2Q%10.55%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%2.78%

3.2 Future

  • THC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.61% yearly.
  • The Revenue is expected to grow by 4.13% on average over the next years.
EPS Next Y2.32%
EPS Next 2Y3.18%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue Next Year3.49%
Revenue Next 2Y2.69%
Revenue Next 3Y3.67%
Revenue Next 5Y4.13%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
THC Yearly Revenue VS EstimatesTHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
THC Yearly EPS VS EstimatesTHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

More info and screens

Find the best growth stocksShow best growing peers

8

4. THC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 10.63, the valuation of THC can be described as very reasonable.
  • Based on the Price/Earnings ratio, THC is valued cheaply inside the industry as 93.07% of the companies are valued more expensively.
  • THC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.64.
  • Based on the Price/Forward Earnings ratio of 10.26, the valuation of THC can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, THC is valued cheaper than 89.11% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. THC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.63
Fwd PE 10.26
THC Price Earnings VS Forward Price EarningsTHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • THC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THC is cheaper than 95.05% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, THC is valued cheaply inside the industry as 96.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.76
EV/EBITDA 5.26
THC Per share dataTHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates THC does not grow enough to justify the current Price/Earnings ratio.
  • THC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.57
PEG (5Y)0.65
EPS Next 2Y3.18%
EPS Next 3Y7.17%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. THC Dividend Analysis

5.1 Amount

  • THC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

THC Fundamentals: All Metrics, Ratios and Statistics

TENET HEALTHCARE CORP

NYSE:THC (5/1/2026, 8:04:00 PM)

After market: 183.27 0 (0%)

183.27

+6.15 (+3.47%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Industry Strength60.87
Industry Growth63.98
Earnings (Last)04-30
Earnings (Next)07-20
Inst Owners99.01%
Inst Owner Change-0.08%
Ins Owners1.08%
Ins Owner Change3.82%
Market Cap15.94B
Revenue(TTM)21.87B
Net Income(TTM)1.70B
Analysts81.43
Price Target263.9 (44%)
Short Float %2.79%
Short Ratio2.17
Dividend
Industry RankSector 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)14.47%
Min EPS beat(2)14.12%
Max EPS beat(2)14.82%
EPS beat(4)4
Avg EPS beat(4)19.61%
Min EPS beat(4)10.92%
Max EPS beat(4)38.59%
EPS beat(8)8
Avg EPS beat(8)21.71%
EPS beat(12)12
Avg EPS beat(12)33.01%
EPS beat(16)16
Avg EPS beat(16)36.27%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)9
Avg Revenue beat(16)0.13%
PT rev (1m)2.2%
PT rev (3m)10.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)0.1%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.74%
Valuation
Industry RankSector Rank
PE 10.63
Fwd PE 10.26
P/S 0.73
P/FCF 4.76
P/OCF 3.65
P/B 3.31
P/tB N/A
EV/EBITDA 5.26
EPS(TTM)17.24
EY9.41%
EPS(NY)17.86
Fwd EY9.75%
FCF(TTM)38.51
FCFY21.01%
OCF(TTM)50.21
OCFY27.4%
SpS251.47
BVpS55.36
TBVpS-90.72
PEG (NY)4.57
PEG (5Y)0.65
Graham Number146.539 (-20.04%)
Profitability
Industry RankSector Rank
ROA 5.46%
ROE 35.38%
ROCE 16.31%
ROIC 13.21%
ROICexc 14.99%
ROICexgc 35.28%
OM 18.69%
PM (TTM) 7.79%
GM 82.47%
FCFM 15.31%
ROA(3y)5.99%
ROA(5y)4.56%
ROE(3y)49.35%
ROE(5y)54.59%
ROIC(3y)10.81%
ROIC(5y)9.72%
ROICexc(3y)12%
ROICexc(5y)10.68%
ROICexgc(3y)26.71%
ROICexgc(5y)23.47%
ROCE(3y)13.34%
ROCE(5y)12%
ROICexgc growth 3Y20.18%
ROICexgc growth 5Y23.63%
ROICexc growth 3Y17.33%
ROICexc growth 5Y21.67%
OM growth 3Y14.14%
OM growth 5Y19.99%
PM growth 3Y45.5%
PM growth 5Y23.89%
GM growth 3Y-0.27%
GM growth 5Y-0.2%
F-Score7
Asset Turnover0.7
Health
Industry RankSector Rank
Debt/Equity 2.73
Debt/FCF 3.94
Debt/EBITDA 2.64
Cap/Depr 114.79%
Cap/Sales 4.65%
Interest Coverage 5.17
Cash Conversion 87.79%
Profit Quality 196.65%
Current Ratio 1.36
Quick Ratio 1.3
Altman-Z 1.81
F-Score7
WACC8.96%
ROIC/WACC1.47
Cap/Depr(3y)105.72%
Cap/Depr(5y)96.95%
Cap/Sales(3y)4.3%
Cap/Sales(5y)4.05%
Profit Quality(3y)160.11%
Profit Quality(5y)131.6%
High Growth Momentum
Growth
EPS 1Y (TTM)32.21%
EPS 3Y34.93%
EPS 5Y16.26%
EPS Q2Q%10.55%
EPS Next Y2.32%
EPS Next 2Y3.18%
EPS Next 3Y7.17%
EPS Next 5Y3.61%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y3.58%
Revenue growth 5Y3.85%
Sales Q2Q%2.78%
Revenue Next Year3.49%
Revenue Next 2Y2.69%
Revenue Next 3Y3.67%
Revenue Next 5Y4.13%
EBIT growth 1Y21.02%
EBIT growth 3Y18.23%
EBIT growth 5Y24.61%
EBIT Next Year24.61%
EBIT Next 3Y10.68%
EBIT Next 5Y7.95%
FCF growth 1Y90.83%
FCF growth 3Y99.01%
FCF growth 5Y-2.47%
OCF growth 1Y73.87%
OCF growth 3Y48.41%
OCF growth 5Y0.77%

TENET HEALTHCARE CORP / THC Fundamental Analysis FAQ

What is the ChartMill fundamental rating of TENET HEALTHCARE CORP (THC) stock?

ChartMill assigns a fundamental rating of 6 / 10 to THC.


Can you provide the valuation status for TENET HEALTHCARE CORP?

ChartMill assigns a valuation rating of 8 / 10 to TENET HEALTHCARE CORP (THC). This can be considered as Undervalued.


What is the profitability of THC stock?

TENET HEALTHCARE CORP (THC) has a profitability rating of 9 / 10.


How financially healthy is TENET HEALTHCARE CORP?

The financial health rating of TENET HEALTHCARE CORP (THC) is 5 / 10.


Is the dividend of TENET HEALTHCARE CORP sustainable?

The dividend rating of TENET HEALTHCARE CORP (THC) is 0 / 10 and the dividend payout ratio is 0%.