Tenet Healthcare Corp

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THC : NYSE : Health Care
$15.67 | %
Today's Range: 15.235 - 15.74
Avg. Daily Volume: 3463500.0
04/28/17 - 4:03 PM ET

Financial Analysis


TENET HEALTHCARE CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. TENET HEALTHCARE CORP has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 39.65% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)4860.05026.0
EBITDA ($mil)567.0562.0
EBIT ($mil)349.0354.0
Net Income ($mil)-79.0-97.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)716.0356.0
Total Assets ($mil)24701.023682.0
Total Debt ($mil)15255.014510.0
Equity ($mil)417.0691.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin11.6711.18
EBITDA Margin11.6611.18
Operating Margin7.187.04
Sales Turnover0.790.79
Return on Assets-0.77-0.59
Return on Equity-44.84-20.54
Debt Q4 FY16 Q4 FY15
Current Ratio1.31.2
Debt/Capital0.970.95
Interest Expense249.0248.0
Interest Coverage1.41.43


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)99.6998.5
Div / share0.00.0
EPS-0.79-1.01
Book value / share4.187.02
Institutional Own % n/a n/a
Avg Daily Volume3321823.03544953.0

Valuation


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 3.58 indicates a premium versus the S&P 500 average of 2.99 and a premium versus the industry average of 3.21. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
THC NM Peers 26.47   THC 2.68 Peers 11.78

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
THC 8.33 Peers 15.72   THC NA Peers 1.23

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
THC 3.58 Peers 3.21   THC -31.46 Peers 21.66

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 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
THC 0.08 Peers 0.87   THC 5.29 Peers 10.71

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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