TENET HEALTHCARE CORP (THC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THC - US88033G4073 - Common Stock
200.6 USD
+2.83 (+1.43%)
200.6 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to THC. THC was compared to 102 industry peers in the Health Care Providers & Services industry. While THC belongs to the best of the industry regarding profitability, 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. These ratings could make THC a good candidate 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.
Each year in the past 5 years THC has been profitable.
In the past 5 years THC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.60%, THC is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
With an excellent Return On Equity value of 33.73%, THC belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
THC's Return On Invested Capital of 11.65% is amongst the best of the industry. THC outperforms 85.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 Profit Margin of 6.49%. This is amongst the best in the industry. THC outperforms 84.31% of its industry peers.
THC's Profit Margin has improved in the last couple of years.
THC has a better Operating Margin (17.52%) than 95.10% of its industry peers.
THC's Operating Margin has improved in the last couple of years.
The Gross Margin of THC (82.26%) is better than 96.08% of its industry peers.
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
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.
THC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.85 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 1.85, THC is in line with its industry, outperforming 43.14% of the companies in the same industry.
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's Debt to FCF ratio of 8.78 is in line compared to the rest of the industry. THC outperforms 50.00% 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.
THC has a Debt to Equity ratio of 3.26. This is in the lower half of the industry: THC underperforms 75.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.34
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.71 indicates that THC should not have too much problems paying its short term obligations.
The Current ratio of THC (1.71) is better than 66.67% of its industry peers.
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.
THC has a better Quick ratio (1.64) 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.
The Revenue has decreased by -0.56% in the past year.
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
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
A Price/Earnings ratio of 12.93 indicates a correct valuation of THC.
THC's Price/Earnings ratio is rather cheap when compared to the industry. THC is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, THC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.08, the valuation of THC can be described as correct.
Based on the Price/Forward Earnings ratio, THC is valued cheaper than 86.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, THC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THC indicates a rather cheap valuation: THC is cheaper than 90.20% of the companies listed in the same industry.
THC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THC is cheaper than 81.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| 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.
THC has an outstanding profitability rating, which 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% |
200.6
+2.83 (+1.43%)
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 Cap17.63B
Revenue(TTM)20.86B
Net Income(TTM)1.35B
Analysts81.43
Price Target238.92 (19.1%)
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 | 12.93 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.85 | ||
| P/FCF | 11.74 | ||
| P/OCF | 7.11 | ||
| P/B | 4.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.16 |
EPS(TTM)15.52
EY7.74%
EPS(NY)16.61
Fwd EY8.28%
FCF(TTM)17.09
FCFY8.52%
OCF(TTM)28.19
OCFY14.05%
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
WACC8.72%
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)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 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 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%.