(THC) Tenet Healthcare - Overview
Stock: Hospitals, Ambulatory Surgery, Urgent Care, Imaging Centers
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 35.3% |
| Relative Tail Risk | -4.30% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.99 |
| Alpha | 23.65 |
| Character TTM | |
|---|---|
| Beta | 0.965 |
| Beta Downside | 1.131 |
| Drawdowns 3y | |
|---|---|
| Max DD | 36.90% |
| CAGR/Max DD | 1.45 |
Description: THC Tenet Healthcare December 19, 2025
Tenet Healthcare Corp. (NYSE: THC) is a Dallas-based, diversified health-care services firm that runs a network of acute-care hospitals, ambulatory surgery centers, urgent-care sites, imaging facilities, and micro-hospitals across the United States. Its operations are split between Hospital Operations & Services and Ambulatory Care, delivering a broad menu that includes inpatient acute care, specialty surgeries (e.g., cardiothoracic, spinal, transplant), intensive-care units, and outpatient services such as orthopedics, gastroenterology, and tele-medicine.
Key performance indicators from Tenet’s most recent 10-Q (Q3 2023) show adjusted EBITDA of roughly $1.3 billion and an operating margin of 5.2%, with hospital occupancy hovering around 71%-a modest improvement from the pandemic trough but still below the industry average of ~78%. The company’s cash flow conversion remains strong, generating about $800 million in free cash flow, which underpins its ongoing debt-reduction plan and potential for dividend reinstatement.
Sector-wide drivers that materially affect Tenet include an aging U.S. population (projected to increase the over-65 cohort by 10% over the next decade), shifting Medicare/Medicaid reimbursement rates, and persistent labor shortages in nursing and allied health staff that can pressure operating margins. Additionally, the rollout of value-based care contracts is accelerating, incentivizing hospitals to improve quality metrics and readmission rates.
For a deeper quantitative look at THC’s valuation metrics, you may find the ValueRay platform useful.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 1.35b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -3.04 > 1.0 |
| NWC/Revenue: 15.58% < 20% (prev 15.36%; Δ 0.23% < -1%) |
| CFO/TA 0.08 > 3% & CFO 2.48b > Net Income 1.35b |
| Net Debt (10.21b) to EBITDA (4.42b): 2.31 < 3 |
| Current Ratio: 1.71 > 1.5 & < 3 |
| Outstanding Shares: last quarter (88.6m) vs 12m ago -8.32% < -2% |
| Gross Margin: 55.93% > 18% (prev 0.40%; Δ 5554 % > 0.5%) |
| Asset Turnover: 70.95% > 50% (prev 71.40%; Δ -0.45% > 0%) |
| Interest Coverage Ratio: 4.39 > 6 (EBITDA TTM 4.42b / Interest Expense TTM 819.0m) |
Altman Z'' 2.19
| A: 0.11 (Total Current Assets 7.81b - Total Current Liabilities 4.56b) / Total Assets 29.42b |
| B: 0.14 (Retained Earnings 4.04b / Total Assets 29.42b) |
| C: 0.12 (EBIT TTM 3.59b / Avg Total Assets 29.39b) |
| D: 0.19 (Book Value of Equity 3.88b / Total Liabilities 20.72b) |
| Altman-Z'' Score: 2.19 = BBB |
Beneish M -3.12
| DSRI: 1.24 (Receivables 3.78b/3.05b, Revenue 20.86b/20.97b) |
| GMI: 0.71 (GM 55.93% / 39.55%) |
| AQI: 1.03 (AQ_t 0.53 / AQ_t-1 0.51) |
| SGI: 0.99 (Revenue 20.86b / 20.97b) |
| TATA: -0.04 (NI 1.35b - CFO 2.48b) / TA 29.42b) |
| Beneish M-Score: -3.12 (Cap -4..+1) = AA |
What is the price of THC shares?
Over the past week, the price has changed by +6.39%, over one month by -3.30%, over three months by -1.38% and over the past year by +44.04%.
Is THC a buy, sell or hold?
- StrongBuy: 12
- Buy: 5
- Hold: 5
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the THC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 237.7 | 18% |
| Analysts Target Price | 237.7 | 18% |
| ValueRay Target Price | 284.6 | 41.3% |
THC Fundamental Data Overview February 04, 2026
P/E Forward = 12.0919
P/S = 0.7969
P/B = 4.1442
P/EG = 0.8537
Revenue TTM = 20.86b USD
EBIT TTM = 3.59b USD
EBITDA TTM = 4.42b USD
Long Term Debt = 13.10b USD (from longTermDebt, last quarter)
Short Term Debt = 85.0m USD (from shortTermDebt, last quarter)
Debt = 13.19b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 10.21b USD (from netDebt column, last quarter)
Enterprise Value = 26.82b USD (16.61b + Debt 13.19b - CCE 2.98b)
Interest Coverage Ratio = 4.39 (Ebit TTM 3.59b / Interest Expense TTM 819.0m)
EV/FCF = 17.86x (Enterprise Value 26.82b / FCF TTM 1.50b)
FCF Yield = 5.60% (FCF TTM 1.50b / Enterprise Value 26.82b)
FCF Margin = 7.20% (FCF TTM 1.50b / Revenue TTM 20.86b)
Net Margin = 6.49% (Net Income TTM 1.35b / Revenue TTM 20.86b)
Gross Margin = 55.93% ((Revenue TTM 20.86b - Cost of Revenue TTM 9.19b) / Revenue TTM)
Gross Margin QoQ = 58.33% (prev 82.32%)
Tobins Q-Ratio = 0.91 (Enterprise Value 26.82b / Total Assets 29.42b)
Interest Expense / Debt = 1.56% (Interest Expense 206.0m / Debt 13.19b)
Taxrate = 18.68% (133.0m / 712.0m)
NOPAT = 2.92b (EBIT 3.59b * (1 - 18.68%))
Current Ratio = 1.71 (Total Current Assets 7.81b / Total Current Liabilities 4.56b)
Debt / Equity = 3.29 (Debt 13.19b / totalStockholderEquity, last quarter 4.01b)
Debt / EBITDA = 2.31 (Net Debt 10.21b / EBITDA 4.42b)
Debt / FCF = 6.80 (Net Debt 10.21b / FCF TTM 1.50b)
Total Stockholder Equity = 4.03b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.61% (Net Income 1.35b / Total Assets 29.42b)
RoE = 33.61% (Net Income TTM 1.35b / Total Stockholder Equity 4.03b)
RoCE = 20.97% (EBIT 3.59b / Capital Employed (Equity 4.03b + L.T.Debt 13.10b))
RoIC = 16.98% (NOPAT 2.92b / Invested Capital 17.20b)
WACC = 5.84% (E(16.61b)/V(29.80b) * Re(9.47%) + D(13.19b)/V(29.80b) * Rd(1.56%) * (1-Tc(0.19)))
Discount Rate = 9.47% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -7.77%
[DCF Debug] Terminal Value 88.43% ; FCFF base≈1.86b ; Y1≈2.29b ; Y5≈3.90b
Fair Price DCF = 1177 (EV 113.69b - Net Debt 10.21b = Equity 103.48b / Shares 87.9m; r=5.90% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 21.75 | EPS CAGR: -45.94% | SUE: -4.0 | # QB: 0
Revenue Correlation: 79.27 | Revenue CAGR: 2.30% | SUE: 0.24 | # QB: 0
EPS next Quarter (2026-03-31): EPS=4.41 | Chg30d=+0.011 | Revisions Net=-1 | Analysts=15
EPS next Year (2026-12-31): EPS=16.31 | Chg30d=-0.140 | Revisions Net=-3 | Growth EPS=+1.2% | Growth Revenue=+4.2%