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Tenet Healthcare Corp THC

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Tenet Raises 2021 Outlook, but Our Estimates Remain in the New Expected Ranges; No FVE Change

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Tenet turned in strong first-quarter results and raised its 2021 guidance slightly. Our estimates for 2021 were already within the new ranges, so we do not anticipate changing our $37 fair value estimate for Tenet at first glance. However, shares still remain above that, and we continue to see extreme uncertainty around the valuation scenarios of this highly leveraged, no-moat hospital operator.

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Company Profile

Business Description

Tenet Healthcare is a Dallas-based healthcare provider organization operating a collection of hospitals (65) and many outpatient facilities, including ambulatory surgery centers, urgent care centers, freestanding imaging centers, freestanding emergency rooms/micro-hospitals, and physician practices across the United States. Tenet enjoys the number-one ambulatory surgical center position nationwide through its nearly full stake in United Surgical Partners International.

Contact
14201 Dallas Parkway, Suite 1400
Dallas, TX, 75254
T +1 469 893-2200
Sector Healthcare
Industry Medical Care Facilities
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Slow Growth
Employees 110,000

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