Tenet Healthcare (THC) AI Stock Analysis

• Market Cap: $13.78B
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.15
• Revenue Growth: -1.09%
• EPS Growth: -43.10%
• Country: US
• Employees: 98,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 4.02
• Shares Outstanding: 92,885,000
• 10 Day Avg. Volume: 1,959,862
• 30 Day Avg. Volume: 1,761,696
• PEG Ratio: 2.97
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.41
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 1.43
• 1Y Price Target: $196.35
• Price Target Upside: 32.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 67 Neutral
• Price Target: $161.00 ▲(8.51%Upside)

The overall score reflects strong earnings call results and undervaluation, offset by bearish technical indicators and financial risks from high leverage and declining profitability. Positive corporate events provide a minor boost.

Positive Factors

Business Strategy

Analyst recommends buying the stock due to strong free cash flow and a shift towards faster-growing business segments.

Revenue Growth

Exchange admissions increased significantly, reflecting a growth in exchange revenues.

Stock Buyback

THC has bought back $1.1 billion of stock and announced another $1.5 billion authorization, which combined represents 16% of the market cap.

Negative Factors

Future Uncertainty

Uncertainty around the path forward for exchanges, which account for 7% of revenue, creates some concern regarding future performance.

Potential Future Losses

A headwind of $265 million is expected in the acute segment due to potential subsidy losses in 2026.

Tenet Healthcare Business Overview & Revenue Model

Company Description

Tenet Healthcare Corporation is a diversified healthcare services company headquartered in Dallas, Texas. It operates through a network of hospitals, outpatient centers, and urgent care facilities across the United States. The company offers a broad range of healthcare services, including acute care, specialty surgery, diagnostic imaging, and other outpatient services, catering to a wide array of medical needs. With a focus on quality care and patient satisfaction, Tenet Healthcare is dedicated to improving healthcare delivery through its various subsidiaries, including Conifer Health Solutions and United Surgical Partners International (USPI).

How the Company Makes Money

Tenet Healthcare generates revenue primarily through patient services provided at its hospitals, outpatient centers, and urgent care facilities. The company earns money from patient admissions, surgeries, diagnostic services, and other medical procedures. A significant portion of its revenue comes from agreements with private insurance companies, government health programs like Medicare and Medicaid, and direct payments from patients. Additionally, Tenet's subsidiary, United Surgical Partners International, contributes to its earnings by operating surgical facilities in partnership with physicians. Conifer Health Solutions, another key subsidiary, provides revenue cycle management and value-based care services, further enhancing the company's financial performance. Strategic partnerships and acquisitions also play a crucial role in expanding Tenet's service offerings and market presence, driving revenue growth.

Tenet Healthcare Financial Statement Overview

Summary

Tenet Healthcare displays strong operational efficiency and cash flow management, with impressive profitability metrics and a significantly improved debt position. However, challenges include a recent decline in net income and revenue growth, as well as a relatively high liability level.

Income Statement

Tenet Healthcare shows strong profitability with a consistent gross profit margin of around 47.3% TTM. The net profit margin has seen fluctuations but stands at a healthy 8.1% TTM. Revenue growth is stable with a slight decrease in the latest TTM compared to the previous year. The company maintains robust EBIT and EBITDA margins at 17.2% and 18.3% respectively, indicating efficient operations. However, the recent decline in net income and revenue growth could pose concerns if not addressed.

Balance Sheet

The company's balance sheet reveals a solid equity ratio of 14.3% TTM, showing a reasonable level of financial stability. The debt-to-equity ratio has improved significantly, dropping to 0.02, reflecting effective debt management. Return on equity is impressive at 40%, indicating strong profitability relative to shareholder equity. However, the overall equity base remains relatively small compared to total liabilities, which could pose risks during financial downturns.

Cash Flow

Cash flow analysis indicates a strong free cash flow growth rate of 27.4% TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is robust at 1.36, demonstrating efficient cash flow management. The free cash flow to net income ratio is also solid at 0.85, suggesting effective use of cash. Despite this, the company must maintain its focus on sustaining cash flow growth amid fluctuating net income levels.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.66B	20.55B	19.17B	19.48B	17.64B
Gross Profit	11.86B	16.96B	15.90B	16.16B	14.66B
EBITDA	6.89B	3.39B	3.33B	3.42B	2.43B
Net Income	3.20B	611.00M	1.00B	1.48B	768.00M
Balance Sheet
Total Assets	28.94B	28.31B	27.16B	27.58B	27.11B
Cash, Cash Equivalents and Short-Term Investments	3.02B	1.23B	858.00M	2.36B	2.45B
Total Debt	14.33B	16.21B	15.08B	15.65B	15.72B
Total Liabilities	20.39B	22.80B	22.55B	23.32B	24.22B
Stockholders Equity	4.17B	1.61B	1.14B	1.03B	28.00M
Cash Flow
Free Cash Flow	1.12B	1.62B	321.00M	910.00M	2.87B
Operating Cash Flow	2.05B	2.37B	1.08B	1.57B	3.41B
Investing Cash Flow	3.43B	-969.00M	-808.00M	-714.00M	-1.61B
Financing Cash Flow	-3.69B	-1.03B	-1.78B	-936.00M	385.00M

Tenet Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 148.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THC, the sentiment is Negative. The current price of 148.38 is below the 20-day moving average (MA) of 170.08, below the 50-day MA of 167.94, and above the 200-day MA of 145.82, indicating a neutral trend. The MACD of -2.73 indicates Positive momentum. The RSI at 35.48 is Neutral, neither overbought nor oversold. The STOCH value of 10.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THC.

Tenet Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMS	77 Outperform	$15.78B	23.58	4.36%	0.10%	-0.91%	27.17%
UHS	73 Outperform	$10.02B	9.26	18.35%	0.51%	9.73%	51.87%
DVA	70 Outperform	$10.93B	14.33	260.92%	―	5.11%	14.28%
HCA	69 Neutral	$82.15B	15.70	-230.22%	0.83%	6.37%	―
THC	67 Neutral	$13.78B	9.50	41.09%	―	-1.09%	-43.10%
EHC	65 Neutral	$10.96B	22.45	25.33%	0.63%	11.21%	30.38%
Sector *	52 Neutral	$7.60B	0.11	-62.95%	2.07%	16.16%	0.31%

Tenet Healthcare Corporate Events

Tenet Healthcare Appoints Lisa Y. Foo as COO

On May 30, 2025, Tenet Healthcare Corporation announced the promotion of Lisa Y. Foo to the newly created position of Chief Operating Officer, effective immediately. This strategic move is expected to enhance the company’s operational leadership and potentially strengthen its market position.

The most recent analyst rating on (THC) stock is a Buy with a $136.00 price target. To see the full list of analyst forecasts on Tenet Healthcare stock, see the THC Stock Forecast page.

Tenet Healthcare Holds Annual Shareholder Meeting

On May 22, 2025, Tenet Healthcare Corporation held its Annual Meeting of Shareholders, where several key decisions were made. Shareholders elected directors to the board, approved executive compensation, and ratified Deloitte & Touche LLP as the independent accountants for 2025. However, a proposal for a report on improving maternal health outcomes was not approved, indicating a lack of consensus on this issue among shareholders.

The most recent analyst rating on (THC) stock is a Buy with a $184.00 price target. To see the full list of analyst forecasts on Tenet Healthcare stock, see the THC Stock Forecast page.