Tenet Healthcare Corp (THC) stock analysis
Close on Nov 11, 2026Market cap $23.32BP/E 8.5Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed13 of 30 checks passed
Tenet Healthcare passes 13 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 3/6
- Past performance
- 1/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 36.1% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $292.97 is below our fair value estimate of $458.44.
Return on capital over 10%
Return on invested capital was 28.2%, above the 10% that usually covers the cost of capital.
EPS growing 10%+ a year
Diluted EPS grew 59.9% a year over the last three fiscal years.
What to watch
High debt
Debt is 243% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 3.6% a year over the last three fiscal years, short of the 10% we look for.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.33; above 3 is the safe zone and below 1.8 the distress zone.
P/B above the industry
Tenet Healthcare's price-to-book of 4.28 is above the Health Services median of 3.52.
Valuation5/6
P/E below its 5-year median
Tenet Healthcare's P/E of 8.5 is below its own 5-year median of 10.4.
P/E below the industry
Tenet Healthcare's P/E of 8.5 is below the Health Services median of 23.9.
EV/EBITDA below its 5-year median
Tenet Healthcare's EV/EBITDA of 5.7 is below its 5-year median of 6.4.
P/B above the industry
Tenet Healthcare's price-to-book of 4.28 is above the Health Services median of 3.52.
Trading below fair value
The share price of $292.97 is below our fair value estimate of $458.44.
Margin of safety over 20%
The price is 36.1% below fair value, more than the 20% cushion we look for.
Growth3/6
Revenue growing under 10% a year
Revenue grew 3.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 59.9% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 6.2% over the last twelve months; the Health Services median is 4.0%.
Guidance raised
Tenet Healthcare raised its FY 2026 Net operating revenues outlook on Oct 29, 2026.
Gross margin trend
This company does not report gross profit.
Past performance1/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 28.2%, above the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.
Financial health4/6
High debt
Debt is 243% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 56139% five years ago to 243%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 32.0% of total debt.
Interest well covered
Operating income covers interest expense 6.6 times.
Short-term assets cover short-term debts
Current assets are 1.58 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.33; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Tenet Healthcare has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$458.44
The share price is 36% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 17.1× | 10.4× | 23.9× | $590.72 | 40% |
| EV/EBITDA | 7.5× | 6.4× | 8.6× | $458.33 | 35% |
| P/B | 4.2× | 4.9× | 3.5× | $288.76 | 10% |
| Earnings power | 10.6% cost of equity | – | – | $219.09 | 15% |
| Fair value | $458.44 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 10.4
- Health Services median 23.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $218.61M
- Value traded per 1% price move
- $143.48M
Downside
Medium risk
- Typical loss in a bad month
- 19.4%
- Volatility (annualized)
- 44%
- Sharpe ratio, 1 year
- 1.06
- Beta to the S&P 500 (5Y)
- 1.14
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Operating margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +3.1% | +3.6% | +3.9% | – | |
| Operating income | -41.1% | +14.6% | +12.0% | +12.5% | |
| EPS, diluted | -52.6% | +59.9% | +32.8% | – | |
| Free cash flow | +126.7% | +99.0% | -2.5% | +30.0% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Current ratio | 1.30 | 1.47 | 1.76 | |
| Debt to equity | 36.58 | 561.39 | 3.12 | |
| Net debt to EBITDA | 6.93× | 4.66× | 2.35× | |
| Interest coverage | 1.3× | 2.0× | 4.3× | |
| Capex to revenue | 4.5% | 3.1% | 4.7% | |
| Diluted shares | 99M | 106M | 91M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Tenet Healthcare generated $10.61B from operations and spent $6.62B on capital expenditure, dividends and share buybacks. 62% of that went back into the business.
DuPont needs revenue, assets and equity
This company does not report all three for consecutive years.
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero–
- Cash generatingOperating cash flow above zero$3.54B
- Return on assets improvedROA up on the prior year– → –
- Earnings backed by cashOperating cash flow above net income$3.54B vs –
- Less leverageLong-term debt to assets fell45.2% → 44.1%
- Better liquidityCurrent ratio rose1.78 → 1.76
- No dilutionShare count did not rise98M → 91M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.73 → 0.74
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