A Business at a Glance
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Tenet Healthcare Corporation (“Tenet”) is a diversified healthcare services company with its headquarters in Dallas, Texas, and a Global Business Center (“GBC”) in the Philippines that supports various enterprise-wide administrative functions. We operate our expansive, nationwide care delivery network through direct and indirect subsidiaries, as well as downstream partnerships and joint ventures; the terms “we,” “our” and “us,” as used in this report and unless otherwise stated or indicated by the context, refer to Tenet and these entities. Our business is organized into two separate reporting segments – Hospital Operations and Services (“Hospital Operations”) and Ambulatory Care.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 21.3B | 21.3B | 20.7B | 20.6B | 19.2B | 19.5B |
| Net Income | 1.4B | 1.4B | 3.2B | 611M | 411M | 914M |
| EPS | $15.49 | $15.49 | $32.70 | $5.71 | $3.79 | $8.42 |
| Free Cash Flow | 2.5B | 2.5B | 1.1B | 1.6B | 321M | 910M |
| ROIC | 17.0% | 19.8% | 30.0% | 12.8% | 11.2% | 15.6% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 3.42 | 3.42 | 3.43 | 10.08 | 14.30 | 16.31 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 3.5B | 3.5B | 6.0B | 2.5B | 2.3B | 2.9B |
| Operating Margin | 16.5% | 16.5% | 28.8% | 12.2% | 12.2% | 14.7% |
| ROE | 33.3% | 33.5% | 110.7% | 44.4% | 37.9% | 173.1% |
| Shares Outstanding | 91M | 91M | 98M | 107M | 108M | 109M |
TENET HEALTHCARE CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
TENET HEALTHCARE CORP trades at 12.7x trailing earnings, compared to its 15-year median P/E of 12.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 6.8x vs a median of 7.0x. The company's 5-year average ROIC is 17.9%. Total shareholder yield (buybacks) is 7.8%. At current prices, the estimated annualized return to fair value is +14.9%.
TENET HEALTHCARE CORP (THC) has a current P/E ratio of 12.7, compared to its historical median P/E of 12.3. The stock is currently considered Fair based on its historical valuation range.
TENET HEALTHCARE CORP (THC) has a 5-year average return on invested capital (ROIC) of 17.9%. This indicates strong capital allocation and a potential competitive advantage.
TENET HEALTHCARE CORP (THC) has a market capitalization of $17.9B. It is classified as a large-cap stock.
TENET HEALTHCARE CORP (THC) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 7.76%.
Based on historical P/E analysis, TENET HEALTHCARE CORP (THC) appears fair. The current P/E of 12.7 is 3% above its historical median of 12.3. The estimated fair value CAGR (P/E method) is 61.1%.
TENET HEALTHCARE CORP (THC) operates in the Services-General Medical & Surgical Hospitals, Nec industry, within the Healthcare sector.
TENET HEALTHCARE CORP (THC) reported annual revenue of $21.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
TENET HEALTHCARE CORP (THC) has a net profit margin of 6.6%. This is a modest margin.
TENET HEALTHCARE CORP (THC) generated $2.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TENET HEALTHCARE CORP (THC) has a debt-to-equity ratio of 3.42. This indicates higher leverage, which may increase financial risk.
TENET HEALTHCARE CORP (THC) reported earnings per share (EPS) of $15.49 in its most recent fiscal year.
TENET HEALTHCARE CORP (THC) has a return on equity (ROE) of 33.5%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 16 years of financial data for TENET HEALTHCARE CORP (THC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TENET HEALTHCARE CORP (THC) has a book value per share of $46.46, based on its most recent annual SEC filing.