THC
Tenet Healthcare Corp
$196.39
▲ 1.0%Updated Today 3:42 PM ET
THC at a glance — five pillars scored 0–100 from real filed financials.
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.
▲ Up 19.9% over the last 12 months
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
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.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
19.2% average over the last 3 years
±6.4 pts around 12.4% across 10 years
grew in 5 of the last 9 year-over-year periods
positive in 9 of 10 years
31.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
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 $196.39, around its 50-day average ($181.99) and 200-day average ($198.68). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
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 (~3.3% 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.
4Y CAGR
2.3%
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.
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.
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.
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.
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.
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
$196.39
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%
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.
Where THC sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How THC stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (324 S&P 500 companies), THC ranks #29 of 324 by our overall rating. It trades at a discount versus the sector on earnings (10.3x P/E vs. 25.4x median) with a higher return on equity (40.6% vs. 14.1%) and slower revenue growth (6.6% vs. 7.6%).
P/E vs sector
10.3x
median 25.4x
ROE vs sector
40.6%
median 14.1%
Growth vs sector
6.6%
median 7.6%
Sector rank
#29
of 324 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $196.39 today · expected CAGR -4% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $22.80B | $24.40B | $26.11B | $27.93B | $29.89B |
| Net income | $1.82B | $1.95B | $2.09B | $2.23B | $2.39B |
| EPS | $20.42 | $21.84 | $23.37 | $25.01 | $26.76 |
| Share price (low) | $122.49 | $131.07 | $140.24 | $150.06 | $160.56 |
| Share price (high) | $204.15 | $218.44 | $233.73 | $250.09 | $267.60 |
| CAGR (low–high) | -38% / 4% | -18% / 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.
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).
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.
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.
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.
Analyst Ratings
What 27 Wall Street analysts covering THC recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-4 pts of buy ratings).
Latest SEC Filings
THC's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
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.