Skip to Content
Morningstar
Get 14 Days Free

Tenet Healthcare Corp THC

Morningstar Rating
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.

Read Full Analysis

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

Related

Stock Strategist Industry Reports
Executive Orders Bring Uncertainty for Healthcare Exchanges
For now, we’re not changing our valuations or moat ratings for the affected companies.
Vishnu Lekraj
ETF Specialist
Just a Bump in the Road for the Global Infrastructure Sector?
This ETF has been battered by the decline in energy prices and weakness in emerging markets.
Robert Goldsborough
ETF Specialist
Opportunity in the World’s Roads, Railways, and Water Systems
iShares Global Infrastructure provides a broad, inexpensive way to invest in global infrastructure.
Robert Goldsborough
Credit Insights
Investment Bankers Must Be on Spring Break
New issue supply fell well short of demand to put money to work last week.
David Sekera
Credit Insights
Treasury Bonds Take It on the Chin
Strong job growth sent Treasury rates upward, but corporate credit spreads held steady on a flood of new issues.
David Sekera
Credit Insights
Credit Markets Normalizing, but Concerns Remain
Things are slowly improving in the bond market, but many of the issues in Europe that underlie the sovereign debt crisis remain unresolved.
David Sekera
Quarter-End Insights
Credit Outlook: Sector Updates and Top Bond Picks
Get our sector-by-sector take on the bond market, plus our five best bond ideas.
David Sekera
Credit Insights
Plenty of Cheap Debt to Go Around
U.S. banks have repaired their balance sheets and have ample credit capacity available to provide commitment letters supporting M&A activity.
David Sekera
Quarter-End Insights
Credit Outlook: Sector Updates and Top Bond Picks
Get our sector-by-sector take on the bond market, plus our five best bond ideas.
David Sekera
Stock Strategist Industry Reports
Patient Trends Improving, but Reimbursement Outlook Remains Bleak for Health Service Providers
Greater accountability creates a new level of operating uncertainty.
Michael Waterhouse
Stock Strategist Industry Reports
No Bargains for No-Moat Health Service Providers
No-moat health service providers are most challenged by industry uncertainty.
Michael Waterhouse
Stock Strategist Industry Reports
A Healthy Challenge for Hospitals
The industry must spend again as patient volumes pick up.
Michael Waterhouse
Stock Strategist
What Does Health-Care Reform Mean for Managed Care?
2009 could be a year of major regulatory change for the MCOs.
Matthew Coffina
US Videos
Managed Care: How Likely Is a Worst-Case Scenario?
Although a new public health-care plan could drastically cut MCOs' fair values, that legislation is likely not passable.
Alex Morozov
Stock Strategist Industry Reports
What Does Health-Care Reform Mean for Managed Care?
2009 could be a year of major regulatory change for the MCOs.
Matthew Coffina
Stock Strategist Industry Reports
Like Their Patients, Hospitals Are Ill
After a tough 2008, hospitals are set to face more pain in 2009.
Jeffrey Stafford
Market Update
Second Quarter in Stocks: Let the Good Times Roll
Saying it was a good quarter for stocks would be an understatement.
Paul Larson
Fund Times
Fund Times: Openings, Closings, & Manager Changes
AIM, Invesco, Fidelity, Scudder, Munder, Gabelli, T. Rowe Price, MFS, and more.
Dan Culloton
Premium Article
Janus Slashes Top Holdings
Redemptions cause firm to lighten its portfolios.
Brian Portnoy
Special Report
Stocks That Fund Managers Are Buying
Value stocks and funds continue to be in favor.
Kunal Kapoor