TENET HEALTHCARE CORP's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. TENET HEALTHCARE CORP has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 9.11% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||4692.0||4175.0|
|Net Income ($mil)||-29.0||9.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||450.0||200.0|
|Total Assets ($mil)||23173.0||17312.0|
|Total Debt ($mil)||14754.0||11553.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||11.47||10.9|
|Return on Assets||0.07||-0.42|
|Return on Equity||2.36||-5.98|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||99.59||98.22|
|Div / share||0.0||0.0|
|Book value / share||8.05||7.48|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2676646.0||2749982.0|
HOLD. TENET HEALTHCARE CORP's P/E ratio indicates a significant premium compared to an average of 21.35 for the Health Care Providers & Services industry and a significant premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 3.29 indicates a premium versus the S&P 500 average of 2.51 and a premium versus the industry average of 3.13. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, TENET HEALTHCARE CORP proves to trade at a premium to investment alternatives within the industry.
|THC 139.32||Peers 21.35||THC 2.50||Peers 11.69|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
THC is trading at a significant premium to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
THC is trading at a significant discount to its peers.
|THC 11.87||Peers 15.87||THC 0.28||Peers 1.06|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
THC is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
THC trades at a significant discount to its peers.
|THC 3.29||Peers 3.13||THC 141.30||Peers 94.42|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
THC is trading at a valuation on par with its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
THC is expected to have an earnings growth rate that significantly exceeds its peers.
|THC 0.15||Peers 0.73||THC 12.81||Peers 14.88|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
THC is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
THC trails its peers on the basis of sales growth
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