Tenet Healthcare Corporation
Find Ratings ReportsTENET HEALTHCARE CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. TENET HEALTHCARE CORP has average liquidity. Currently, the Quick Ratio is 1.10 which shows that technically this company has the 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 greatly increased by 40.80% 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 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 5379.0 | 4990.0 |
EBITDA ($mil) | 937.0 | 792.0 |
EBIT ($mil) | 721.0 | 579.0 |
Net Income ($mil) | 244.0 | 102.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1228.0 | 858.0 |
Total Assets ($mil) | 28312.0 | 27156.0 |
Total Debt ($mil) | 16213.0 | 16332.0 |
Equity ($mil) | 1608.0 | 1142.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 17.42 | 15.87 |
EBITDA Margin | 17.41 | 15.87 |
Operating Margin | 13.4 | 11.6 |
Sales Turnover | 0.72 | 0.71 |
Return on Assets | 2.15 | 1.51 |
Return on Equity | 38.0 | 35.9 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.51 | 1.34 |
Debt/Capital | 0.91 | 0.93 |
Interest Expense | 227.0 | 219.0 |
Interest Coverage | 3.18 | 2.64 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 99.95 | 102.25 |
Div / share | 0.0 | 0.0 |
EPS | 2.3 | 0.92 |
Book value / share | 16.09 | 11.17 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1104312.0 | 1652323.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 17.30 for the Hospitals subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 6.22 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 3.74. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, TENET HEALTHCARE CORP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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THC 17.52 | Peers 17.30 | THC 4.21 | Peers 9.00 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. THC is trading at a valuation on par with 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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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THC 13.89 | Peers 14.47 | THC 1.98 | Peers 1.89 | |||||||||||||||||||||
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 premium to its peers. |
Average. 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 valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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THC 6.22 | Peers 3.74 | THC 54.32 | Peers 1.00 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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THC 0.49 | Peers 1.27 | THC 7.02 | Peers 7.99 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. THC trails its peers on the basis of sales growth. |
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