Tenet Healthcare (THC) AI Stock Analysis

• Market Cap: $17.25B
• Dividend Yield: N/A
• Average Volume (3M): 935.31K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.12
• Revenue Growth: -0.56%
• EPS Growth: -53.50%
• Country: US
• Employees: 98,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 3.70
• Shares Outstanding: 87,885,000
• 10 Day Avg. Volume: 839,075
• 30 Day Avg. Volume: 935,310
• PEG Ratio: <0.01
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 10.96
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 7.44
• 1Y Price Target: $238.24
• Price Target Upside: 21.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 16.04
• Revenue Forecast (FY): $21.27B

• Rating: 74 Outperform
• Price Target: $231.00 ▲(17.66% Upside)

Tenet Healthcare's overall stock score reflects strong earnings performance and strategic financial maneuvers, which are the most significant factors. The company's robust revenue growth and improved leverage are positive, though profitability and cash flow challenges remain. Technical indicators support a bullish outlook, while valuation metrics suggest reasonable pricing. Recent corporate events further bolster financial flexibility, enhancing the company's market position.

Positive Factors

Revenue Growth

Strong revenue growth reflects effective market penetration and service demand, supporting long-term business expansion and stability.

Debt Refinancing

Refinancing enhances financial flexibility, reduces interest burden, and strengthens market position, supporting sustainable growth.

EBITDA Margin Improvement

Improved EBITDA margin indicates better operational efficiency, enhancing profitability and competitive edge in the healthcare sector.

Negative Factors

Profitability Challenges

Declining profit margins suggest cost pressures or pricing challenges, which may impact long-term profitability and financial health.

Cash Flow Decline

Declining cash flow growth can limit investment capacity and operational flexibility, posing risks to future expansion and stability.

Policy Change Risks

Potential policy changes could affect reimbursement rates, impacting revenue streams and financial predictability in the healthcare sector.

Tenet Healthcare Business Overview & Revenue Model

Company Description

Tenet Healthcare Corporation operates as a diversified healthcare services company. The company operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb-salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, and telemedicine access services. In addition, it operates ambulatory surgery and urgent care centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, patient communications and engagement support, and value-based care solutions to hospitals, health systems, physician practices, employers, and other customers. As of February 09, 2022, the company operated 60 hospitals; and approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, urgent care and imaging centers, and other care sites and clinics. Tenet Healthcare Corporation was incorporated in 1975 and is headquartered in Dallas, Texas.

How the Company Makes Money

Tenet Healthcare generates revenue through a multifaceted model primarily centered around patient services. The company earns money by billing for medical services rendered in its hospitals and outpatient facilities, including surgeries, emergency care, diagnostic tests, and various specialty services. Key revenue streams include reimbursements from government programs such as Medicare and Medicaid, as well as private insurance payments. Additionally, Tenet engages in partnerships and joint ventures with other healthcare entities, which can provide additional revenue through shared services and facilities. The company's performance is also influenced by factors such as patient volumes, the mix of insured versus uninsured patients, and the regulatory environment impacting healthcare reimbursement.

Tenet Healthcare Financial Statement Overview

Summary

Tenet Healthcare demonstrates strong revenue growth and improved leverage, indicating a positive trajectory in expansion and financial stability. However, challenges in profitability and cash flow growth suggest areas for improvement. The company is well-positioned in the medical care facilities industry, with opportunities to enhance profitability and cash flow management.

Income Statement

Tenet Healthcare shows a strong revenue growth trajectory with a TTM revenue growth rate of 80.7%, indicating robust expansion. However, the net profit margin has decreased from 15.5% in 2024 to 7.6% in TTM, suggesting some pressure on profitability. The gross profit margin improved significantly in TTM, indicating better cost management. Overall, the income statement reflects strong growth but with some profitability challenges.

Balance Sheet

The balance sheet shows a significant improvement in the debt-to-equity ratio, dropping from 3.43 in 2024 to 0.02 in TTM, indicating a substantial reduction in leverage. However, the return on equity has decreased from 76.7% in 2024 to 37.3% in TTM, reflecting reduced efficiency in generating returns from equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative growth rate of -3.9% in TTM. The operating cash flow to net income ratio is moderate at 0.54, indicating a reasonable conversion of income to cash. The free cash flow to net income ratio is healthy at 0.61, showing good cash generation relative to net income. Overall, cash flow stability is moderate with some areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.86B	20.66B	20.55B	19.17B	19.48B	17.64B
Gross Profit	11.66B	8.21B	7.80B	7.05B	7.27B	6.23B
EBITDA	4.42B	6.89B	3.39B	3.08B	3.67B	2.53B
Net Income	1.35B	3.20B	611.00M	411.00M	914.00M	399.00M
Balance Sheet
Total Assets	29.42B	28.94B	28.31B	27.16B	27.58B	27.11B
Cash, Cash Equivalents and Short-Term Investments	2.98B	3.02B	1.23B	858.00M	2.36B	2.45B
Total Debt	13.19B	14.33B	15.00B	15.08B	15.65B	15.72B
Total Liabilities	20.72B	20.39B	22.80B	22.55B	23.32B	24.22B
Stockholders Equity	4.01B	4.17B	1.61B	1.14B	1.03B	28.00M
Cash Flow
Free Cash Flow	1.50B	1.12B	1.62B	321.00M	910.00M	2.87B
Operating Cash Flow	2.48B	2.05B	2.37B	1.08B	1.57B	3.41B
Investing Cash Flow	-1.26B	3.43B	-969.00M	-808.00M	-714.00M	-1.61B
Financing Cash Flow	-2.34B	-3.69B	-1.03B	-1.78B	-936.00M	385.00M

Tenet Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 196.33
• 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 Neutral. The current price of 196.33 is below the 20-day moving average (MA) of 205.28, below the 50-day MA of 202.56, and above the 200-day MA of 171.96, indicating a neutral trend. The MACD of -2.10 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 10.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THC.

Tenet Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	74 Outperform	$14.21B	10.81	19.97%	0.35%	10.21%	39.58%
THC	74 Outperform	$17.25B	13.46	34.51%	―	-0.56%	-53.50%
HCA	70 Neutral	$107.93B	18.28	―	0.61%	6.82%	15.82%
FMS	65 Neutral	$13.73B	17.06	5.31%	3.35%	4.09%	13.17%
EHC	64 Neutral	$10.70B	20.11	24.94%	0.66%	11.13%	27.53%
DVA	59 Neutral	$8.13B	11.86	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tenet Healthcare Corporate Events

Tenet Healthcare Board Member Resigns, Board Size Reduced

On November 21, 2025, Stephen H. Rusckowski resigned from Tenet Healthcare Corporation’s board of directors, prompting the board to reduce its size from thirteen to twelve members.

Tenet Healthcare Issues $2.25 Billion in New Notes

On November 18, 2025, Tenet Healthcare Corporation issued $1.5 billion in senior secured first lien notes due 2032 and $750 million in senior notes due 2033. The proceeds from these notes will be used to redeem existing debt, specifically $1.5 billion of 6.250% senior secured second lien notes due 2027 and $750 million of 6.125% senior notes due 2028. The issuance of these notes is part of Tenet’s strategic financial management, allowing the company to restructure its debt and potentially improve its financial flexibility. The notes come with covenants that restrict certain financial activities but also allow for exceptions, providing Tenet with operational leeway.

Tenet Healthcare Secures $1.9 Billion Credit Facility

On November 4, 2025, Tenet Healthcare Corporation entered into a Credit Agreement to establish a senior secured revolving credit facility of up to $1.9 billion, with a $200 million sub-facility for letters of credit. This agreement, which involves JPMorgan Chase Bank as the administrative agent, is secured by a first-priority lien on accounts receivable and inventory. Additionally, Tenet amended its existing Letter of Credit Facility Agreement to extend the maturity date to November 4, 2030, enhancing its financial flexibility and potentially impacting its market positioning positively.

Tenet Healthcare Announces $2 Billion Debt Refinancing

On November 3, 2025, Tenet Healthcare Corporation announced the commencement of private placement offerings totaling $2 billion in senior secured and unsecured notes to refinance existing debt. The proceeds will be used to redeem $1.5 billion of its 6.250% senior secured second lien notes due 2027 and partially redeem $0.75 billion of its 6.125% senior notes due 2028. This strategic financial maneuver aims to optimize Tenet’s debt structure, potentially enhancing its financial flexibility and strengthening its market position.