NYSE:THC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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 +/- 11% a week.

Volatility Over Time: THC's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

THC

-2.1%

US Healthcare

-0.9%

US Market


1 Year Return

27.6%

THC

14.2%

US Healthcare

19.6%

US Market

Return vs Industry: THC exceeded the US Healthcare industry which returned 13.5% over the past year.

Return vs Market: THC exceeded the US Market which returned 21% over the past year.


Shareholder returns

THCIndustryMarket
7 Day3.0%-2.1%-0.9%
30 Day16.9%5.9%3.0%
90 Day63.6%12.4%11.5%
1 Year27.6%27.6%15.6%14.2%22.3%19.6%
3 Year174.8%174.8%32.6%27.0%45.3%35.7%
5 Year89.0%89.0%92.2%78.4%124.8%99.9%

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?


Share Price vs. Fair Value

Below Fair Value: THC ($47.38) is trading above our estimate of fair value ($45)

Significantly Below Fair Value: THC is trading above our estimate of fair value.


Price To Earnings Ratio

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

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 15 analysts?

45.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: THC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: THC's is expected to become profitable in the next 3 years.

Revenue vs Market: THC's revenue (6.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: THC's revenue (6.2% 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 low in 3 years time (14.8%).


Next Steps

Past Performance

How has Tenet Healthcare performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THC is currently unprofitable.

Growing Profit Margin: THC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: THC is unprofitable, but has reduced losses over the past 5 years at a rate of 10.4% 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 (21.4%).


Return on Equity

High ROE: THC has a negative Return on Equity (16.44%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tenet Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: THC's short term assets ($7.8B) exceed its short term liabilities ($5.8B).

Long Term Liabilities: THC's short term assets ($7.8B) do not cover its long term liabilities ($18.3B).


Debt to Equity History and Analysis

Debt Level: THC's debt to equity ratio (749.9%) is considered high.

Reducing Debt: THC's debt to equity ratio has increased from 544% to 749.9% over the past 5 years.


Balance Sheet


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 51.2% per year.


Next Steps

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?

3.3yrs

Average management tenure


CEO

Ron Rittenmeyer (73 yo)

3.25yrs

Tenure

US$24,288,660

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's total compensation ($USD24.29M) is above average for companies of similar size in the US market ($USD6.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Rittenmeyer
Executive Chairman & CEO3.25yrsUS$24.29m0.59%
$ 29.3m
Saumya Sutaria
President0.17yrUS$13.95m0.047%
$ 2.3m
Daniel Cancelmi
CFO & Executive VP8.33yrsUS$5.14m0.32%
$ 15.9m
Paola Arbour
Executive VP & Chief Information Officer2.67yrsUS$1.70m0.0025%
$ 122.9k
Audrey Andrews
Executive VP8yrsUS$3.64m0.049%
$ 2.4m
Regina Nethery
Vice President of Investor Relations1.17yrsno datano data
Howard Hacker
Executive VP & Chief Compliance Officer4.67yrsno data0%
$ 0
Marie Quintana
Executive VP of Communications & Chief Marketing Officer1.83yrsno data0.0049%
$ 242.8k
Michael Maloney
Senior Vice President of Corporate Development3.92yrsno datano data
Sandra R. Karrmann
Executive VP & Chief Human Resources Officer3.17yrsno data0.0079%
$ 388.4k
Bill Durham
Chief Financial Officer of Nola Regional Health Networkno datano datano data
Clint Hailey
Chief Managed Care Officer & Senior VP13.5yrsno datano data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: THC's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Rittenmeyer
Executive Chairman & CEO3.25yrsUS$24.29m0.59%
$ 29.3m
Saumya Sutaria
President0.17yrUS$13.95m0.047%
$ 2.3m
James Bierman
Independent Director3.25yrsUS$307.50kno data
Meghan FitzGerald
Independent Director2.67yrsUS$292.50k0.0058%
$ 287.7k
Joseph Kerrey
Lead Independent Director3.25yrsUS$508.30k0.034%
$ 1.7m
Richard Mark
Independent Director3.17yrsUS$299.00kno data
Richard Fisher
Independent Director3.17yrsUS$300.50kno data
Tammy Romo
Independent Director5.83yrsUS$306.24k0.025%
$ 1.2m
Christopher Lynch
Independent Director1.42yrsUS$243.21kno data
Mark Kopser
Executive Chairman of Aspen Healthcare no datano datano data
Lloyd Austin
Independent Director2.67yrsUS$302.50kno data
Nadja West
Independent Director1.25yrsUS$190.22k0.00095%
$ 46.9k

3.2yrs

Average Tenure

64yo

Average Age

Experienced Board: THC's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: THC insiders have only sold shares 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$4.935b
  • Shares outstanding: 105.52m
  • 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 through three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its general hos...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:11
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.