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Market Cap

US$6.8b

Last Updated

2021/05/07 03:32 UTC

Data Sources

Company Financials +

Executive Summary

Tenet Healthcare Corporation operates as a diversified healthcare services company. More Details


Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

How has Tenet Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: THC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: THC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

9.8%

THC

2.2%

US Healthcare

-1.7%

US Market


1 Year Return

285.0%

THC

44.2%

US Healthcare

51.8%

US Market

Return vs Industry: THC exceeded the US Healthcare industry which returned 44.2% over the past year.

Return vs Market: THC exceeded the US Market which returned 51.8% over the past year.


Shareholder returns

THCIndustryMarket
7 Day9.8%2.2%-1.7%
30 Day27.5%8.6%1.5%
90 Day29.1%17.4%3.1%
1 Year285.0%285.0%46.0%44.2%54.4%51.8%
3 Year100.8%100.8%64.9%58.1%63.0%52.8%
5 Year130.2%130.2%107.5%91.7%127.2%101.9%

Long-Term Price Volatility Vs. Market

How volatile is Tenet Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tenet Healthcare undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THC ($65.41) is trading below our estimate of fair value ($165.23)

Significantly Below Fair Value: THC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: THC is good value based on its PE Ratio (17.2x) compared to the US Healthcare industry average (23.3x).

PE vs Market: THC is good value based on its PE Ratio (17.2x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: THC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: THC is overvalued based on its PB Ratio (56.7x) compared to the US Healthcare industry average (3.5x).


Future Growth

How is Tenet Healthcare forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THC's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: THC's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: THC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: THC's revenue (4.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: THC's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THC's Return on Equity is forecast to be very high in 3 years time (200.3%).


Past Performance

How has Tenet Healthcare performed over the past 5 years?

41.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THC has high quality earnings.

Growing Profit Margin: THC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: THC has become profitable over the past 5 years, growing earnings by 41% per year.

Accelerating Growth: THC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: THC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (39.8%).


Return on Equity

High ROE: Whilst THC's Return on Equity (27.59%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Tenet Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: THC's short term assets ($6.7B) exceed its short term liabilities ($4.9B).

Long Term Liabilities: THC's short term assets ($6.7B) do not cover its long term liabilities ($18.6B).


Debt to Equity History and Analysis

Debt Level: THC's debt to equity ratio (483.4%) is considered high.

Reducing Debt: THC's debt to equity ratio has increased from 438.9% to 483.4% over the past 5 years.

Debt Coverage: THC's debt is well covered by operating cash flow (26.2%).

Interest Coverage: THC's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

What is Tenet Healthcare current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate THC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate THC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if THC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if THC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of THC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Ron Rittenmeyer (73 yo)

3.58yrs

Tenure

US$16,675,529

Compensation

Mr. Ronald A. Rittenmeyer, also known as Ron, has been an Independent Director of IQVIA Holdings Inc. since October 2016. He served as Director of IMS Health from April 2010 to October 2016. He has been Ex...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD16.68M) is above average for companies of similar size in the US market ($USD6.50M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: THC's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: THC's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tenet Healthcare Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tenet Healthcare Corporation
  • Ticker: THC
  • Exchange: NYSE
  • Founded: 1975
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$6.848b
  • Shares outstanding: 106.79m
  • Website: https://www.tenethealth.com

Number of Employees


Location

  • Tenet Healthcare Corporation
  • 14201 Dallas Parkway
  • Dallas
  • Texas
  • 75254
  • United States

Listings


Biography

Tenet Healthcare Corporation operates as a diversified healthcare services company. The company operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its general hospital...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 03:32
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.