TENET HEALTHCARE CORP's gross profit margin for the third quarter of its fiscal year 2014 has decreased 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 0.78 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 decreased by 10.90% 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 FY14||Q3 FY13|
|Net Sales ($mil)||4179.0||2408.0|
|Net Income ($mil)||9.0||28.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||200.0||82.0|
|Total Assets ($mil)||17312.0||9337.0|
|Total Debt ($mil)||11553.0||5823.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||10.98||11.96|
|Return on Assets||-0.42||-0.65|
|Return on Equity||-5.98||-6.06|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||98.22||99.17|
|Div / share||0.0||0.0|
|Book value / share||7.48||8.32|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1921890.0||1664592.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 6.86 indicates a significant premium versus the S&P 500 average of 2.76 and a significant premium versus the industry average of 3.83. 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 NM||Peers 29.28||THC 6.86||Peers 15.38|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
THC's P/E is negative making this valuation measure meaningless.
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 19.32||Peers 20.51||THC NA||Peers 2.65|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
THC is trading at a significant premium to its peers.
Neutral. 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.
Ratio not available.
|THC 6.86||Peers 3.83||THC 9.81||Peers -179.10|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
THC is trading at a significant premium to 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 0.31||Peers 0.87||THC 67.90||Peers 14.31|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
THC has a sales growth rate that significantly exceeds its peers.
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