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Tenet Healthcare Corp THC

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Stock XNYS Rating as of
$126.62 +0.51 (0.40%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Tenet Earnings: Continued Deleveraging Enhances Balance Sheet for Portfolio Transformation

Julie Utterback,

No-moat Tenet Healthcare posted robust first-quarter results thanks to favorable medical utilization trends and effective cost controls. We are maintaining our $104 fair value estimate, as the company continues to optimize its portfolio through hospital divestitures and ambulatory care expansions. With recent deleveraging efforts, Tenet has significantly improved its balance sheet quality, which puts the company closer to its goal of operating 575-600 ambulatory facilities by the end of 2025. Currently, we view Tenet’s shares as fairly valued.

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Price vs Fair Value

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THC is trading at a 34% premium.
Price
$126.12
Fair Value
$215.00
Uncertainty
High
1-Star Price
$588.40
5-Star Price
$63.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

With new management in place since late 2017, Tenet has become a more efficient and more profitable organization, suggesting that the team is making progress operationally.

Bears

Tenet operates with significant financial leverage that adds both fixed costs and some refinancing risk to the organization.

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News

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Trading Information

Previous Close Price
$126.11
Day Range
$126.62–127.25
52-Week Range
$51.12–128.63
Bid/Ask
$126.52 / $127.15
Market Cap
$12.37 Bil
Volume/Avg
78 / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
14.36
Price/Sales
0.62
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
3.47%

Company Profile

Tenet Healthcare is a Dallas-based healthcare services organization. It operates a collection of hospitals (about 60 as of December 2023) and over 450 ambulatory surgery centers and other outpatient facilities across the U.S., primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.
Sector
Healthcare
Industry
Medical Care Facilities
Stock Style Box
Mid Value
Total Number of Employees
106,500
Website
https://www.tenethealth.com

Competitors

Valuation

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Metric
THC
DVA
HCA
Price/Earnings (Normalized)
 14.3614.8816.30
Price/Book Value
 3.5712.94—
Price/Sales
 0.621.031.30
Price/Cash Flow
 7.186.368.63
Price/Earnings
THC
DVA
HCA

Financial Strength

Metric
THC
DVA
HCA
Quick Ratio
 1.231.060.86
Current Ratio
 1.441.191.18
Interest Coverage
 5.813.954.98
Quick Ratio
THC
DVA
HCA

Profitability

Metric
THC
DVA
HCA
Return on Assets (Normalized)
 3.29%6.99%9.68%
Return on Equity (Normalized)
 50.21%118.17%—
Return on Invested Capital (Normalized)
 7.95%10.75%16.36%
Return on Assets
THC
DVA
HCA
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Medical Care Facilities Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
HCA
HCA Healthcare IncGswffwdfGftyn$83.1 Bil
FSNUF
Fresenius SE & Co KGaA—Jmvpklj$17.4 Bil
FSNUY
Fresenius SE & Co KGaA ADR—Lmdvctc$17.4 Bil
FMCQF
Fresenius Medical Care AG—Ckzpmtz$12.8 Bil
FMS
Fresenius Medical Care AG ADRLzxrjVyzvpq$12.8 Bil
BDUUY
Bangkok Dusit Medical Services PCL ADR—Mwlg$12.6 Bil
BDUUF
Bangkok Dusit Medical Services PCL Units Non-Voting Depository Receipt—Gygz$12.6 Bil
DVA
DaVita IncQcyxkbvrTdhxkx$12.0 Bil
AMN
AMN Healthcare Services IncTqydndnJtwkty$2.2 Bil

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