Tenet Healthcare Corp.

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THC : NYSE : Health Services
$19.28 up 0.18 | 0.94%
Today's Range: 18.68 - 19.52
Avg. Daily Volume: 2530800.0
02/23/18 - 4:02 PM ET

Financial Analysis

TENET HEALTHCARE CORP's gross profit margin for the third quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. TENET HEALTHCARE CORP has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 95.45% 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 FY17 Q3 FY16
Net Sales ($mil)4586.04849.0
EBITDA ($mil)463.0545.0
EBIT ($mil)244.0340.0
Net Income ($mil)-367.0-8.0

Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)429.0649.0
Total Assets ($mil)23208.024474.0
Total Debt ($mil)14881.014507.0
Equity ($mil)24.0528.0

Profitability Q3 FY17 Q3 FY16
Gross Profit Margin10.111.24
EBITDA Margin10.0911.23
Operating Margin5.327.01
Sales Turnover0.820.81
Return on Assets-2.38-0.85
Return on Equity-2304.16-39.39
Debt Q3 FY17 Q3 FY16
Current Ratio1.281.13
Interest Expense257.0243.0
Interest Coverage0.951.4

Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)100.8399.53
Div / share0.00.0
Book value / share0.245.31
Institutional Own % n/a n/a
Avg Daily Volume2669723.04140349.0


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 81.89 indicates a significant premium versus the S&P 500 average of 3.26 and a significant premium versus the industry average of 3.72. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
THC NM Peers 20.01   THC 4.78 Peers 12.15

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
THC 20.24 Peers 16.04   THC NA Peers 1.10

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
THC 81.89 Peers 3.72   THC -161.90 Peers 46.07

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.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, THC is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
THC 0.10 Peers 0.94   THC -3.67 Peers 6.72

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 significantly trails its peers on the basis of sales growth



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