We assign a fundamental rating of 6 out of 10 to THC. THC was compared to 103 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on THC. This makes THC very considerable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

THC had positive earnings in the past year.
In the past year THC had a positive cash flow from operations.
Each year in the past 5 years THC has been profitable.
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 73.79% of its industry peers.
THC's Return On Equity of 33.73% is amongst the best of the industry. THC outperforms 94.17% of its industry peers.
The Return On Invested Capital of THC (11.65%) is better than 85.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for THC is in line with the industry average of 9.21%.
The last Return On Invested Capital (11.65%) for THC is above the 3 year average (9.25%), which is a sign of increasing profitability.

		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's Profit Margin of 6.49% is amongst the best of the industry. THC outperforms 84.47% of its industry peers.
In the last couple of years the Profit Margin of THC has grown nicely.
THC has a better Operating Margin (17.52%) than 96.12% of its industry peers.
In the last couple of years the Operating Margin of THC has grown nicely.
The Gross Margin of THC (82.26%) is better than 96.12% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for THC has been reduced compared to 1 year ago.
The number of shares outstanding for THC has been reduced compared to 5 years ago.
Compared to 1 year ago, THC has an improved debt to assets ratio.

2.2 Solvency

THC has an Altman-Z score of 1.84. 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.
With a Altman-Z score value of 1.84, THC perfoms like the industry average, outperforming 43.69% 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.
Looking at the Debt to FCF ratio, with a value of 8.78, THC is in line with its industry, outperforming 50.49% of the companies in the same industry.
THC has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
THC's Debt to Equity ratio of 3.26 is on the low side compared to the rest of the industry. THC is outperformed by 74.76% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.26
Debt/FCF	8.78
Altman-Z	1.84

ROIC/WACC1.34

WACC8.7%

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 has a Current ratio of 1.71. This is in the better half of the industry: THC outperforms 67.96% of its industry peers.
A Quick Ratio of 1.64 indicates that THC should not have too much problems paying its short term obligations.
THC has a better Quick ratio (1.64) than 66.02% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.71
Quick Ratio	1.64

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

THC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.32%, which is quite impressive.
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.
Looking at the last year, THC shows a decrease in Revenue. The Revenue has decreased by -0.56% in the last year.
The Revenue has been growing slightly by 2.26% on average over the past years.

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

The Earnings Per Share is expected to grow by 13.65% on average over the next years. This is quite good.
THC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.

EPS Next Y36.74%

EPS Next 2Y17.92%

EPS Next 3Y15.45%

EPS Next 5Y13.65%

Revenue Next Year2.31%

Revenue Next 2Y3.3%

Revenue Next 3Y3.83%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.24, THC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of THC indicates a rather cheap valuation: THC is cheaper than 84.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of THC to the average of the S&P500 Index (27.25), we can say THC is valued rather cheaply.
THC is valuated reasonably with a Price/Forward Earnings ratio of 11.48.
Based on the Price/Forward Earnings ratio, THC is valued cheaply inside the industry as 87.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of THC to the average of the S&P500 Index (25.98), we can say THC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.24
Fwd PE	11.48

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 90.29% of the companies listed in the same industry.
83.50% of the companies in the same industry are more expensive than THC, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	11.11
EV/EBITDA	5.99

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.
The excellent profitability rating of THC may justify a higher PE ratio.
THC's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.