Tenet Healthcare Corp

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THC : NYSE : Health Care
$18.52 | %
Today's Range: 18.3301 - 19.35
Avg. Daily Volume: 3230000.0
06/23/17 - 4:03 PM ET

Financial Analysis


TENET HEALTHCARE CORP's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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 1.05 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, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 31.20% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)4813.05044.0
EBITDA ($mil)482.0596.0
EBIT ($mil)261.0384.0
Net Income ($mil)-53.0-59.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)572.0728.0
Total Assets ($mil)24510.023766.0
Total Debt ($mil)15218.014522.0
Equity ($mil)430.0625.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin10.0111.82
EBITDA Margin10.0111.81
Operating Margin5.427.61
Sales Turnover0.790.81
Return on Assets-0.75-1.03
Return on Equity-42.79-38.88
Debt Q1 FY17 Q1 FY16
Current Ratio1.341.2
Debt/Capital0.970.96
Interest Expense258.0243.0
Interest Coverage1.011.58


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)100.4299.27
Div / share0.00.0
EPS-0.52-0.56
Book value / share4.286.3
Institutional Own % n/a n/a
Avg Daily Volume3299886.03293013.0

Valuation


SELL. 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 4.41 indicates a premium versus the S&P 500 average of 3.09 and a premium versus the industry average of 3.56. 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 24.51   THC 3.17 Peers 14.23

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 10.96 Peers 17.26   THC NA Peers 1.32

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

THC is trading at a valuation on par with 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 4.41 Peers 3.56   THC 24.90 Peers 16.90

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
THC 0.10 Peers 0.93   THC 0.70 Peers 10.31

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.

 

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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