(THC) Tenet Healthcare - Overview
Sector: Healthcare | Industry: Medical Care Facilities | Exchange: NYSE (USA) | Market Cap: 15.332m USD | Total Return: 5.3% in 12m
Avg Turnover: 287M
EPS Trend: 98.7%
Qual. Beats: 0
Rev. Trend: 78.2%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Tenet Healthcare Corporation (THC) is a Dallas-based healthcare services provider operating through two primary segments: Hospital Operations and Ambulatory Care. The company manages a network of acute care hospitals, specialty facilities, and surgical centers that provide a range of services from routine outpatient diagnostics to complex quaternary care, including organ transplants and level 1 trauma support.
The business model increasingly emphasizes ambulatory surgery centers (ASCs), which typically offer higher margins and lower overhead costs compared to traditional inpatient hospital settings. Within the Health Care Facilities sub-industry, providers are currently navigating a structural shift toward value-based care and outpatient migration to offset rising labor costs in acute care environments.
Investors can evaluate the underlying valuation metrics and historical performance of THC on ValueRay. Founded in 1967, the company maintains a diversified geographic footprint, utilizing advanced medical technologies such as surgical robotics and telemedicine to service patient populations across the United States.
- USPI ambulatory surgery center expansion drives higher-margin outpatient revenue growth
- Strategic hospital divestitures reduce debt leverage and improve consolidated margins
- Medicare reimbursement rate adjustments impact core acute care services profitability
- Rising clinical labor costs and nursing shortages pressure hospital operating margins
- Population aging in core sunbelt markets increases demand for high-acuity surgeries
| Net Income: 1.70b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 5.87 > 1.0 |
| NWC/Revenue: 10.27% < 20% (prev 16.87%; Δ -6.60% < -1%) |
| CFO/TA 0.14 > 3% & CFO 4.37b > Net Income 1.70b |
| Net Debt (10.2b) to EBITDA (4.40b): 2.33 < 3 |
| Current Ratio: 1.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (87.6m) vs 12m ago -7.81% < -2% |
| Gross Margin: 42.76% > 18% (prev 0.40%; Δ 4.24k% > 0.5%) |
| Asset Turnover: 71.00% > 50% (prev 70.19%; Δ 0.81% > 0%) |
| Interest Coverage Ratio: 4.28 > 6 (EBITDA TTM 4.40b / Interest Expense TTM 822.0m) |
| A: 0.07 (Total Current Assets 8.36b - Total Current Liabilities 6.15b) / Total Assets 31.2b |
| B: 0.16 (Retained Earnings 5.12b / Total Assets 31.2b) |
| C: 0.12 (EBIT TTM 3.52b / Avg Total Assets 30.2b) |
| D: 0.22 (Book Value of Equity 4.95b / Total Liabilities 22.4b) |
| Altman-Z'' = 2.01 = BBB |
| DSRI: 0.79 (Receivables 2.60b/3.15b, Revenue 21.5b/20.5b) |
| GMI: 0.94 (GM 42.76% / 40.38%) |
| AQI: 1.01 (AQ_t 0.53 / AQ_t-1 0.52) |
| SGI: 1.05 (Revenue 21.5b / 20.5b) |
| TATA: -0.09 (NI 1.70b - CFO 4.37b) / TA 31.2b) |
| Beneish M = -3.30 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 173.78 with a total of 819,208 shares traded.
Over the past week, the price has changed by -11.63%,
over one month by -3.89%,
over three months by -26.85% and
over the past year by +5.26%.
Tenet Healthcare has received a consensus analysts rating of 4.55. Therefore, it is recommended to buy THC.
- StrongBuy: 14
- Buy: 6
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 244.6 | 40.7% |
P/E Trailing = 9.2564
P/E Forward = 11.0988
P/S = 0.7146
P/B = 3.3533
P/EG = 4.6247
Revenue TTM = 21.5b USD
EBIT TTM = 3.52b USD
EBITDA TTM = 4.40b USD
Long Term Debt = 13.1b USD (from longTermDebt, last quarter)
Short Term Debt = 81.0m USD (from shortTermDebt, last quarter)
Debt = 13.2b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 10.2b USD (calculated: Debt 13.2b - CCE 2.97b)
Enterprise Value = 25.6b USD (15.3b + Debt 13.2b - CCE 2.97b)
Interest Coverage Ratio = 4.28 (Ebit TTM 3.52b / Interest Expense TTM 822.0m)
EV/FCF = 7.64x (Enterprise Value 25.6b / FCF TTM 3.35b)
FCF Yield = 13.10% (FCF TTM 3.35b / Enterprise Value 25.6b)
FCF Margin = 15.61% (FCF TTM 3.35b / Revenue TTM 21.5b)
Net Margin = 7.94% (Net Income TTM 1.70b / Revenue TTM 21.5b)
Gross Margin = 42.76% ((Revenue TTM 21.5b - Cost of Revenue TTM 12.3b) / Revenue TTM)
Gross Margin QoQ = 16.43% (prev 15.72%)
Tobins Q-Ratio = 0.82 (Enterprise Value 25.6b / Total Assets 31.2b)
Interest Expense / Debt = 6.22% (Interest Expense 822.0m / Debt 13.2b)
Taxrate = 19.96% (226.0m / 1.13b)
NOPAT = 2.81b (EBIT 3.52b * (1 - 19.96%))
Current Ratio = 1.36 (Total Current Assets 8.36b / Total Current Liabilities 6.15b)
Debt / Equity = 2.74 (Debt 13.2b / totalStockholderEquity, last quarter 4.81b)
Debt / EBITDA = 2.33 (Net Debt 10.2b / EBITDA 4.40b)
Debt / FCF = 3.06 (Net Debt 10.2b / FCF TTM 3.35b)
Total Stockholder Equity = 4.20b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.64% (Net Income 1.70b / Total Assets 31.2b)
RoE = 40.55% (Net Income TTM 1.70b / Total Stockholder Equity 4.20b)
RoCE = 20.30% (EBIT 3.52b / Capital Employed (Equity 4.20b + L.T.Debt 13.1b))
RoIC = 11.21% (NOPAT 2.81b / Invested Capital 25.1b)
WACC = 7.65% (E(15.3b)/V(28.5b) * Re(9.95%) + D(13.2b)/V(28.5b) * Rd(6.22%) * (1-Tc(0.20)))
Discount Rate = 9.95% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -7.41%
[DCF] Terminal Value 77.97% ; FCFF base≈2.58b ; Y1≈2.96b ; Y5≈4.35b
[DCF] Fair Price = 641.0 (EV 65.5b - Net Debt 10.2b = Equity 55.2b / Shares 86.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.68 | EPS CAGR: 50.39% | SUE: 0.78 | # QB: 0
Revenue Correlation: 78.20 | Revenue CAGR: 1.85% | SUE: -0.28 | # QB: 0
EPS current Quarter (2026-06-30): EPS=4.18 | Chg30d=-1.64% | Revisions=-20% | Analysts=19
EPS next Quarter (2026-09-30): EPS=4.10 | Chg30d=+0.24% | Revisions=-5% | Analysts=19
EPS current Year (2026-12-31): EPS=17.81 | Chg30d=+3.60% | Revisions=+65% | GrowthEPS=+6.1% | GrowthRev=+3.2%
EPS next Year (2027-12-31): EPS=17.82 | Chg30d=+1.88% | Revisions=+36% | GrowthEPS=+0.1% | GrowthRev=+1.6%
[Analyst] Revisions Ratio: +65%