NYSE:THC

Stock Analysis Report

Executive Summary

Tenet Healthcare Corporation operates as a diversified healthcare services company.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

6.2%

THC

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-12.0%

THC

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: THC underperformed the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: THC underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

THCIndustryMarket
7 Day6.2%5.8%1.8%
30 Day-5.9%2.5%-0.7%
90 Day30.0%-1.8%0.06%
1 Year-12.0%-12.0%-5.0%-6.5%9.7%7.3%
3 Year-0.08%-0.08%33.9%28.6%46.3%36.9%
5 Year-59.5%-59.5%65.6%55.8%64.5%46.5%

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

Undervalued: THC ($23.5) is trading below our estimate of fair value ($118.45)

Significantly Undervalued: THC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: THC is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: THC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate THC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: THC has negative assets, so we can't compare its PB Ratio to the US Healthcare industry average.


Next Steps

Future Growth

How is Tenet Healthcare forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

78.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: THC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: THC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: THC's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: THC's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: THC's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Tenet Healthcare performed over the past 5 years?

-25.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: THC is unprofitable, and losses have increased over the past 5 years at a rate of -25.7% per year.

Accelerating Growth: Unable to compare THC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: THC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (5.3%).


Return on Equity

High ROE: THC has a negative Return on Equity (15.33%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: THC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: THC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Tenet Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: THC's short term assets ($4.7B) exceeds its short term liabilities ($4.2B)

Long Term Liabilities: THC's short term assets (4.7B) do not cover its long term liabilities (16.9B)


Debt to Equity History and Analysis

Debt Level: THC's debt to equity ratio (671%) is considered high

Reducing Debt: THC's debt to equity ratio has reduced from 1004.5% to 671% over the past 5 years.


Balance Sheet

Inventory Level: THC has a high level of physical assets or inventory.

Debt Coverage by Assets: THC's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable THC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: THC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 47.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

2.3yrs

Average management tenure


CEO

Ron Rittenmeyer (72yo)

2yrs

Tenure

US$14,984,021

Compensation

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 Chairma ...


CEO Compensation Analysis

Compensation vs. Market: Ron has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Ron's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: THC's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

70yo

Average Age

Experienced Board: THC's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: THC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$5,360,48804 Oct 19
Glenview Capital Management, LLC
EntityCompany
Shares261,540
Max PriceUS$20.50
BuyUS$160,30910 Sep 19
Glenview Capital Management, LLC
EntityCompany
Shares8,160
Max PriceUS$19.65
SellUS$912,60030 Aug 19
Edward Kangas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares45,000
Max PriceUS$20.28
BuyUS$1,684,03327 Aug 19
Glenview Capital Management, LLC
EntityCompany
Shares81,368
Max PriceUS$20.70
BuyUS$524,23420 Aug 19
Glenview Capital Management, LLC
EntityCompany
Shares26,456
Max PriceUS$19.82
BuyUS$12,351,53615 Aug 19
Glenview Capital Management, LLC
EntityCompany
Shares613,781
Max PriceUS$21.09
BuyUS$16,231,63015 Aug 19
Glenview Capital Management, LLC
EntityCompany
Shares827,424
Max PriceUS$20.99

Ownership Breakdown


Management Team

  • Ron Rittenmeyer (72yo)

    Executive Chairman & CEO

    • Tenure: 2yrs
    • Compensation: US$14.98m
  • Thomas Rice (72yo)

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Audrey Andrews (52yo)

    Executive VP & General Counsel

    • Tenure: 6.8yrs
    • Compensation: US$2.30m
  • Dan Cancelmi (56yo)

    CFO & Executive VP

    • Tenure: 7.1yrs
    • Compensation: US$3.03m
  • Paola Arbour

    Executive VP & Chief Information Officer

    • Tenure: 1.4yrs
  • R. Ramsey

    Chief Accounting Officer

    • Tenure: 0yrs
  • Howard Hacker

    Executive VP & Chief Compliance Officer

    • Tenure: 3.4yrs
  • Mike Maloney

    Senior Vice President of Corporate Development

    • Tenure: 2.7yrs
  • Marie Quintana

    Executive Vice President of Marketing & Communications

    • Tenure: 0.3yrs
  • Saum Sutaria (46yo)

    Chief Operating Officer

    • Tenure: 0.8yrs

Board Members

  • Ed Kangas (75yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$325.52k
  • Jim Bierman (66yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$315.45k
  • Bob Kerrey (75yo)

    Lead Director

    • Tenure: 2yrs
    • Compensation: US$520.51k
  • Ron Rittenmeyer (72yo)

    Executive Chairman & CEO

    • Tenure: 2yrs
    • Compensation: US$14.98m
  • Richard Mark (63yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$304.02k
  • Brenda Gaines (70yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$338.52k
  • Richard Fisher (70yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$294.02k
  • Tammy Romo (57yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$313.52k
  • Mark Kopser

    Executive Chairman of Aspen Healthcare

    • Tenure: 0yrs
  • Lloyd Austin (65yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$298.73k

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: 1967
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$2.431b
  • Shares outstanding: 103.45m
  • Website: https://www.tenethealth.com

Number of Employees


Location

  • Tenet Healthcare Corporation
  • 1445 Ross Avenue
  • Suite 1400
  • Dallas
  • Texas
  • 75202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1971
THC1DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1971

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 Analysis2019/10/17 23:39
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.