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THC

NYSE
Favorable · 60/100

Tenet Healthcare Corp

Health Care
Health Care

$205.61

0.9%

Updated Today 12:11 PM ET

Report Card

THC at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 60/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 19.9% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$17.55B

P/E

10.3x

Forward P/E (est.)

8.09x

ROE

40.6%

Revenue Growth

6.6%

EPS Growth

27.4%

Profit Margin

7.8%

FCF Yield

9.2%

Debt / Equity

3.12x

ROIC

31.0%

Interest Coverage

3.89x

Current Ratio

1.36x

Dividend Yield

Implied Growth (rev. DCF)

-4.7%

Rating Score

60/100

Business Overview
Research

Tenet Healthcare Corp (THC) is a large-cap company in the Health Care industry, part of the Health Care sector of the S&P 500, with a market value around $17.55B.

In its latest reported year it generated about $21.31B in revenue.

Our model rates THC Favorable (60/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what THC's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. THC trades near $205.61, above its 50-day average ($181.99) and 200-day average ($198.68). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 77 it is overbought — the recent rally is stretched and can cool off.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. THC's is $6.50 (~3.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month THC found buyers near $157.58 (support) and sellers near $208.52 (resistance); its 52-week range is $146.60–$247.21. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

2.3%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $21.07B in 2016 to $21.31B in 2025, a 0.1% compound annual growth rate. The most recent year grew a steady 6.6% year over year. Slower, mature growth is common for established businesses.

Profitability
Research
3/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

82.5%

Operating Margin

16.5%

Net Margin

7.8%

ROE

40.6%

Tenet Healthcare Corp keeps about 7.8% of each sales dollar as net profit, with a 82.5% gross margin and 16.5% operating margin. Return on equity is 40.6% and return on invested capital about 31.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
2/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$4.12B

Net Debt

$1.15B

Net Debt / EBITDA

0.33x

Debt / Equity

3.12x

Leverage: debt-to-equity is 3.1x, and operating profit covers interest about 3.9x, with a current ratio of 1.4x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $4.12B of total debt against $2.97B of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$3.54B

Free Cash Flow

$2.53B

FCF Margin

11.9%

In the latest year Tenet Healthcare Corp produced about $3.54B of operating cash flow and $2.53B of free cash flow after capital spending. That is a free-cash-flow yield of about 9.2% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
4/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

10.3x

P/S

0.82x

P/B

4.14x

EV / EBITDA

4.28x

THC trades at 10.3x trailing earnings (about 8.1x on estimated forward earnings), 0.8x sales, and 4.1x book value. Reverse-engineering today's price implies the market expects roughly -4.7% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$582.90

Current price

$205.61

+183% · Below fair-value estimate

Starting FCF (latest 10-K)

$2.53B

Growth, years 1–5

6.6%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$21.86B
PV of terminal value$28.35B
Estimated equity value$50.21B
Shares outstanding86M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
10.3xCheap
Forward P/E
8.1xCheap
P/S ratio
0.8xCheap
Revenue growth
6.6%Strong
EPS growth
27.4%Strong
Gross margin
82.5%Strong
Net margin
7.8%Weak
ROE
40.6%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $205.61 today · expected CAGR -4%6%

Metric20262027202820292030
Revenue$22.80B$24.40B$26.11B$27.93B$29.89B
Net income$1.82B$1.95B$2.09B$2.23B$2.39B
EPS$21.18$22.66$24.25$25.94$27.76
Share price (low)$127.06$135.96$145.47$155.66$166.55
Share price (high)$211.77$226.60$242.46$259.43$277.59
CAGR (low–high)-38% / 3%-19% / 5%-11% / 6%-7% / 6%-4% / 6%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for THC:

  • Strong return on equity (40.6%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~9.2%) funds buybacks and dividends.
  • Our model's overall read is Favorable (60/100).
Bear Case

The case against THC:

  • Elevated leverage (debt/equity 3.1x) adds financial risk.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Balance-sheet risk — debt/equity of 3.1x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Tenet Healthcare Corp is a large-cap health care business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 10.3x earnings, which our model scores Favorable (60/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

THC — frequently asked questions

Is THC a good stock to buy?

We don't give buy or sell advice. Our model rates Tenet Healthcare Corp Favorable (60/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is THC's rating on The Stocks School?

Tenet Healthcare Corp currently scores 60/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does THC's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Tenet Healthcare Corp's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for THC calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this THC analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell THC. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.