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Tenet Healthcare

NYSE:THC
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
THC
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Tenet Healthcare Corporation operates as a diversified healthcare services company. The last earnings update was 57 days ago. More info.


Add to Portfolio Compare Print
  • Tenet Healthcare has significant price volatility in the past 3 months.
THC Share Price and Events
7 Day Returns
-4.9%
NYSE:THC
-2.8%
US Healthcare
-0.1%
US Market
1 Year Returns
1.8%
NYSE:THC
-4.7%
US Healthcare
7.6%
US Market
THC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tenet Healthcare (THC) -4.9% -16.4% 17% 1.8% -25.3% -46.8%
US Healthcare -2.8% -7.3% -11.4% -4.7% 11.3% 60.7%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • THC outperformed the Healthcare industry which returned -4.7% over the past year.
  • THC underperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
THC
Industry
5yr Volatility vs Market

Value

 Is Tenet Healthcare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tenet Healthcare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tenet Healthcare.

NYSE:THC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:THC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (591.77%))
3.037
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for NYSE:THC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tenet Healthcare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:THC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.65%)
2019 583.40 Analyst x5 508.85
2020 1,125.50 Analyst x6 856.24
2021 1,167.33 Analyst x3 774.59
2022 1,206.73 Est @ 3.38% 698.42
2023 1,245.12 Est @ 3.18% 628.55
2024 1,283.05 Est @ 3.05% 564.94
2025 1,320.92 Est @ 2.95% 507.29
2026 1,359.02 Est @ 2.88% 455.23
2027 1,397.60 Est @ 2.84% 408.33
2028 1,436.81 Est @ 2.81% 366.15
Present value of next 10 years cash flows $5,768.60
NYSE:THC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,436.81 × (1 + 2.73%) ÷ (14.65% – 2.73%)
$12,382.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,382.87 ÷ (1 + 14.65%)10
$3,155.59
NYSE:THC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,768.60 + $3,155.59
$8,924.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,924.20 / 102.93
$86.7
NYSE:THC Discount to Share Price
Calculation Result
Value per share (USD) From above. $86.70
Current discount Discount to share price of $24.34
= -1 x ($24.34 - $86.70) / $86.70
71.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Tenet Healthcare is available for.
Intrinsic value
>50%
Share price is $24.34 vs Future cash flow value of $86.7
Current Discount Checks
For Tenet Healthcare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Tenet Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Tenet Healthcare's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tenet Healthcare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tenet Healthcare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:THC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.06
NYSE:THC Share Price ** NYSE (2019-04-23) in USD $24.34
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 20.85x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tenet Healthcare.

NYSE:THC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:THC Share Price ÷ EPS (both in USD)

= 24.34 ÷ 1.06

23.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tenet Healthcare is overvalued based on earnings compared to the US Healthcare industry average.
  • Tenet Healthcare is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Tenet Healthcare's expected growth come at a high price?
Raw Data
NYSE:THC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
37.1%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.49x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:THC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.01x ÷ 37.1%

0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tenet Healthcare is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Tenet Healthcare's assets?
Raw Data
NYSE:THC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $-1.16
NYSE:THC Share Price * NYSE (2019-04-23) in USD $24.34
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:THC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:THC Share Price ÷ Book Value per Share (both in USD)

= 24.34 ÷ -1.16

-20.97x

* Primary Listing of Tenet Healthcare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tenet Healthcare has negative assets, we can't compare the value of its assets to the US Healthcare industry average.
X
Value checks
We assess Tenet Healthcare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Tenet Healthcare has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Tenet Healthcare expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
37.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tenet Healthcare expected to grow at an attractive rate?
  • Tenet Healthcare's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Tenet Healthcare's earnings growth is expected to exceed the United States of America market average.
  • Tenet Healthcare's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:THC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:THC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 37.1%
NYSE:THC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 1.7%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:THC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:THC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 19,361 1,641 377 7
2020-12-31 18,695 1,482 313 19
2019-12-31 18,178 1,326 245 20
NYSE:THC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 18,313 1,049 108
2018-09-30 18,672 1,290 -117
2018-06-30 18,769 1,260 -474
2018-03-31 19,065 1,127 -554
2017-12-31 19,179 1,200 -704
2017-09-30 19,061 416 -553
2017-06-30 19,324 377 -196
2017-03-31 19,390 597 -184
2016-12-31 19,621 558 -187
2016-09-30 19,787 1,042 -208
2016-06-30 19,630 1,255 -227
2016-03-31 19,254 1,230 -243

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tenet Healthcare's earnings are expected to grow significantly at over 20% yearly.
  • Tenet Healthcare's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:THC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Tenet Healthcare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:THC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.45 3.45 3.45 1.00
2020-12-31 2.90 3.27 2.13 9.00
2019-12-31 2.32 2.48 2.11 6.00
NYSE:THC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.06
2018-09-30 -1.15
2018-06-30 -4.68
2018-03-31 -5.49
2017-12-31 -7.00
2017-09-30 -5.52
2017-06-30 -1.96
2017-03-31 -1.85
2016-12-31 -1.88
2016-09-30 -2.10
2016-06-30 -2.29
2016-03-31 -2.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tenet Healthcare is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Tenet Healthcare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tenet Healthcare has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Tenet Healthcare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tenet Healthcare's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tenet Healthcare's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Tenet Healthcare has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Tenet Healthcare has become profitable in the last year making it difficult to compare the US Healthcare industry average.
Earnings and Revenue History
Tenet Healthcare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tenet Healthcare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:THC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 18,313.00 108.00 324.00
2018-09-30 18,672.00 -117.00 329.00
2018-06-30 18,769.00 -474.00 328.00
2018-03-31 19,065.00 -554.00 320.00
2017-12-31 19,179.00 -704.00 322.00
2017-09-30 19,061.00 -553.00 316.00
2017-06-30 19,324.00 -196.00 308.00
2017-03-31 19,390.00 -184.00 318.00
2016-12-31 19,621.00 -187.00 315.00
2016-09-30 19,787.00 -208.00 328.00
2016-06-30 19,630.00 -227.00 322.00
2016-03-31 19,254.00 -243.00 289.00
2015-12-31 18,634.00 -142.00 248.00
2015-09-30 18,073.00 19.00 247.00
2015-06-30 17,556.00 57.00 239.00
2015-03-31 17,101.00 107.00 306.00
2014-12-31 16,603.00 34.00 234.00
2014-09-30 16,023.00 -44.00 232.00
2014-06-30 14,256.00 -21.00 218.00
2014-03-31 12,641.00 -64.00 144.00
2013-12-31 11,087.00 -123.00 186.00
2013-09-30 9,548.00 -50.00 170.00
2013-06-30 9,361.00 -53.00 165.00
2013-03-31 9,204.00 42.00 161.00
2012-12-31 9,119.00 185.00 156.00
2012-09-30 8,960.00 70.00 151.00
2012-06-30 8,839.00 48.00 149.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Tenet Healthcare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Tenet Healthcare used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Tenet Healthcare has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tenet Healthcare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tenet Healthcare has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Tenet Healthcare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tenet Healthcare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tenet Healthcare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tenet Healthcare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Tenet Healthcare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tenet Healthcare Company Filings, last reported 3 months ago.

NYSE:THC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,107.00 14,826.00 411.00
2018-09-30 2,102.00 14,850.00 500.00
2018-06-30 2,005.00 14,867.00 403.00
2018-03-31 2,558.00 14,889.00 974.00
2017-12-31 2,405.00 14,937.00 611.00
2017-09-30 2,511.00 14,881.00 429.00
2017-06-30 2,836.00 15,155.00 475.00
2017-03-31 3,524.00 15,218.00 572.00
2016-12-31 3,475.00 15,255.00 716.00
2016-09-30 3,472.00 14,507.00 649.00
2016-06-30 3,427.00 14,501.00 656.00
2016-03-31 3,307.00 14,522.00 728.00
2015-12-31 3,224.00 14,510.00 356.00
2015-09-30 2,700.00 14,754.00 450.00
2015-06-30 2,609.00 14,754.00 299.00
2015-03-31 1,180.00 12,334.00 185.00
2014-12-31 1,186.00 11,617.00 193.00
2014-09-30 1,262.00 11,553.00 200.00
2014-06-30 1,150.00 11,564.00 406.00
2014-03-31 1,121.00 11,234.00 141.00
2013-12-31 1,218.00 10,849.00 113.00
2013-09-30 1,003.00 5,823.00 82.00
2013-06-30 1,061.00 5,635.00 90.00
2013-03-31 1,082.00 5,427.00 95.00
2012-12-31 1,234.00 5,252.00 364.00
2012-09-30 1,285.00 4,941.00 83.00
2012-06-30 1,245.00 4,946.00 82.00
  • Tenet Healthcare's level of debt (703.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (891.9% vs 703.7% today).
  • Debt is not well covered by operating cash flow (7.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Tenet Healthcare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tenet Healthcare has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Tenet Healthcare dividends. Estimated to be 0% next year.
If you bought $2,000 of Tenet Healthcare shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Tenet Healthcare's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Tenet Healthcare's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:THC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:THC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 5.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Tenet Healthcare has not reported any payouts.
  • Unable to verify if Tenet Healthcare's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Tenet Healthcare's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Tenet Healthcare has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Tenet Healthcare's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Tenet Healthcare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tenet Healthcare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tenet Healthcare has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Tenet Healthcare's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ron Rittenmeyer
COMPENSATION $14,984,021
AGE 71
TENURE AS CEO 1.5 years
CEO Bio

Mr. Ronald A. Rittenmeyer, also known as Ron, has been Director of IQVIA Holdings Inc. since October 2016. He served as Director of IMS Health from April 2010 to October 2016. He has been Executive Chairman and Chief Executive Officer at Tenet Healthcare Corporation since August 2017 and since October 2017 respectively. Mr. Rittenmeyer was the Chairman and Chief Executive Officer of Millennium Health, LLC. He is the former Chairman, President and Chief Executive Officer of Expert Global Solutions, Inc. (formerly known as NCO Group, Inc.), serving from 2011 to 2014. Mr. Rittenmeyer is also the former Chairman, Chief Executive Officer and President of Electronic Data Systems Corporation, serving from 2005 to 2008. He served as Chief Operating Officer of Electronic Data Systems Corporation from October 2005 until September 2007 and served as its Co-Chief Operating Officer until May 2006. He served as Executive Vice President, Global Service Delivery from July 2005 until December 2006. Prior to that, Mr. Rittenmeyer was a Managing Director of the Cypress Group, a private equity firm, serving from 2004 to 2005. Mr. Rittenmeyer also served as Chairman, Chief Executive Officer and President of Safety-Kleen Corp. from 2001 to 2004. Among his other leadership roles, Mr. Rittenmeyer served as President and Chief Executive Officer of AmeriServe Food Distribution Inc. from 2000 to 2001, Chairman, Chief Executive Officer and President of RailTex, Inc. from 1998 to 2000, President and Chief Operating Officer of Ryder TRS, Inc. from 1997 to 1998, President and Chief Operating Officer of Merisel, Inc. from 1995 to 1996 and Chief Operating Officer of Burlington Northern Railroad Co. from 1994 to 1995. Mr. Rittenmeyer has been a Director of American International Group, Inc. since April 01, 2010. He served as a Director of EDS and RH Donnelley (presently Dex One Corporation). He holds B.S. degree in Commerce and Economics from Wilkes University and MBA from Rockhurst University.

CEO Compensation
  • Ron's compensation has increased in line with Tenet Healthcare recently becoming profitable.
  • Ron's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Tenet Healthcare management team in years:

2.5
Average Tenure
57.5
Average Age
  • The tenure for the Tenet Healthcare management team is about average.
Management Team

Ron Rittenmeyer

TITLE
Executive Chairman & CEO
COMPENSATION
$15M
AGE
71
TENURE
1.5 yrs

Dan Cancelmi

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
55
TENURE
6.6 yrs

Audrey Andrews

TITLE
Senior VP & General Counsel
COMPENSATION
$2M
AGE
51
TENURE
6.3 yrs

Keith Pitts

TITLE
Vice Chairman
COMPENSATION
$14M
AGE
60
TENURE
5.5 yrs

Saum Sutaria

TITLE
Chief Operating Officer
AGE
45
TENURE
0.3 yrs

R. Ramsey

TITLE
Chief Accounting Officer

Paola Arbour

TITLE
Chief Information Officer & Senior VP
TENURE
0.9 yrs

Thomas Rice

TITLE
Senior Vice President of Investor Relations
AGE
71

Howard Hacker

TITLE
Chief Compliance Officer & Senior VP
TENURE
2.9 yrs

Mike Maloney

TITLE
Senior Vice President of Corporate Development
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Tenet Healthcare board of directors in years:

1.6
Average Tenure
69
Average Age
  • The average tenure for the Tenet Healthcare board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ron Rittenmeyer

TITLE
Executive Chairman & CEO
COMPENSATION
$15M
AGE
71
TENURE
1.7 yrs

Bill Wilcox

TITLE
Vice Chairman
AGE
66

Mark Kopser

TITLE
Executive Chairman of Aspen Healthcare

Bob Kerrey

TITLE
Lead Director
COMPENSATION
$521K
AGE
74
TENURE
1.5 yrs

Ed Kangas

TITLE
Independent Director
COMPENSATION
$326K
AGE
74
TENURE
16 yrs

Brenda Gaines

TITLE
Independent Director
COMPENSATION
$339K
AGE
69
TENURE
14.1 yrs

Jim Bierman

TITLE
Independent Director
COMPENSATION
$315K
AGE
65
TENURE
1.5 yrs

Tammy Romo

TITLE
Independent Director
COMPENSATION
$314K
AGE
56
TENURE
4.1 yrs

Richard Fisher

TITLE
Independent Director
COMPENSATION
$294K
AGE
69
TENURE
1.4 yrs

Richard Mark

TITLE
Independent Director
COMPENSATION
$304K
AGE
62
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Tenet Healthcare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tenet Healthcare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did You Miss Tenet Healthcare's (NYSE:THC) 33% Share Price Gain?

For example, the Tenet Healthcare Corporation (NYSE:THC) share price is up 33% in the last year, clearly besting than the market return of around 7.0% (not including dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the last year Tenet Healthcare grew its earnings per share, moving from a loss to a profit.

Simply Wall St -

Should You Investigate Tenet Healthcare Corporation (NYSE:THC) At US$26.94?

Tenet Healthcare Corporation (NYSE:THC), which is in the healthcare business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Tenet Healthcare’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

What Should You Know About Tenet Healthcare Corporation's (NYSE:THC) Return On Capital?

and looking to gauge the potential return on investment in Tenet Healthcare Corporation (NYSE:THC). … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Thus, to understand how your money can grow by investing in Tenet Healthcare, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Understanding Your Return On Investment In Tenet Healthcare Corporation (NYSE:THC)

and want a simplistic look at the return on Tenet Healthcare Corporation (NYSE:THC) stock. … To understand Tenet Healthcare’s capital returns we will look at a useful metric called return on capital employed. … Calculating Return On Capital Employed for THC

Simply Wall St -

Tenet Healthcare Corporation (NYSE:THC) Is Expected To Breakeven

Tenet Healthcare Corporation operates as a diversified healthcare services company. … The US$3.71b market-cap company’s loss lessens since it announced a -US$704.00m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$554.00m, as it approaches breakeven? … View out our latest analysis for Tenet Healthcare

Simply Wall St -

When Should You Buy Tenet Healthcare Corp (NYSE:THC)?

Tenet Healthcare Corp (NYSE:THC), a healthcare company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. … What’s more interesting is that, Tenet Healthcare’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Tenet Healthcare.

Simply Wall St -

How Financially Strong Is Tenet Healthcare Corp (THC)?

With this growth in debt, the current cash and short-term investment levels stands at $716M , ready to deploy into the business. … On top of this, THC has produced cash from operations of $558M in the last twelve months, resulting in an operating cash to total debt ratio of 0.04x, signalling that THC’s debt is not appropriately covered by operating cash. … Looking at THC’s most recent $4,034M liabilities, it seems that the business has been able to meet these obligations given the level of current assets of $5,257M, with a current ratio of 1.3x.

Simply Wall St -

Who Are The Major Shareholders In Tenet Healthcare Corp (THC)?

In this article, I will take a quick look at Tenet Healthcare Corp’s (NYSE:THC) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … View our latest analysis for Tenet Healthcare NYSE:THC Ownership Summary Nov 7th 17 Institutional Ownership THC's 94.82% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade.

Simply Wall St -

Company Info

Description

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 hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and coronary care units; physical therapy, orthopedic, oncology, and outpatient services; cardiothoracic surgery, neonatal intensive care, and neurosurgery services; quaternary care in heart, liver, kidney, and bone marrow transplants areas; tertiary and quaternary pediatric, and burn services; and limb-salvaging vascular procedures, acute level 1 trauma services, intravascular stroke care, minimally invasive cardiac valve replacement, imaging technology, and telemedicine access for various medical specialties. In addition, it operates ambulatory surgery and urgent care centers, imaging centers, and surgical hospitals; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, as well as value-based care solutions to healthcare systems, individual hospitals, physician practices, self-insured organizations, health plans, and other entities. As of December 31, 2018, the company operated 68 hospitals, 23 surgical hospitals, and approximately 475 outpatient centers, as well as 255 ambulatory surgery, 36 urgent care, and 23 imaging centers in the United States. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.

Details
Name: Tenet Healthcare Corporation
THC
Exchange: NYSE
Founded: 1967
$2,505,371,695
102,932,280
Website: http://www.tenethealth.com
Address: Tenet Healthcare Corporation
1445 Ross Avenue,
Suite 1400,
Dallas,
Texas, 75202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE THC Common Stock New York Stock Exchange US USD 28. Apr 1971
DB THC1 Common Stock Deutsche Boerse AG DE EUR 28. Apr 1971
Number of employees
Current staff
Staff numbers
102,795
Tenet Healthcare employees.
Industry
Health Care Facilities
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:45
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.