📊 THC Key Takeaways
Is Tenet Healthcare Corp. (THC) a Good Investment?
Tenet Healthcare exhibits solid cash generation fundamentals with $2.5B free cash flow and strong 16.1x interest coverage, supporting a leveraged balance sheet. However, a sharp 40.6% decline in net income and 52.6% EPS decline—despite stable operating income—signals underlying operational or non-operating pressures that require clarification before investment.
Why Buy Tenet Healthcare Corp. Stock? THC Key Strengths
- Strong free cash flow of $2.5B with 11.9% FCF margin demonstrates operational cash conversion quality
- Excellent interest coverage ratio of 16.1x provides substantial debt service safety despite $13.1B long-term debt
- Healthy liquidity with 1.76x current ratio and 1.68x quick ratio ensures near-term financial flexibility
- Operating income of $3.5B aligns with operating cash flow, confirming high-quality earnings from core business
THC Stock Risks: Tenet Healthcare Corp. Investment Risks
- Net income collapse of 40.6% YoY with EPS down 52.6% indicates significant below-operating-line deterioration despite stable operating performance
- High leverage at 3.10x debt-to-equity ratio magnifies impact of earnings volatility on shareholder value
- Modest 3.1% revenue growth combined with declining net profitability suggests pricing pressure or cost inflation not offset by volume growth
Key Metrics to Watch
- Net income trend and drivers of year-over-year decline to determine if issue is structural or non-recurring
- Operating cash flow sustainability relative to capital expenditure needs to monitor free cash flow trajectory
- Debt reduction progress and debt-to-EBITDA ratio movement given high absolute leverage
Tenet Healthcare Corp. (THC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Tenet Healthcare Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
THC Profit Margin, ROE & Profitability Analysis
THC vs Healthcare Sector: How Tenet Healthcare Corp. Compares
How Tenet Healthcare Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Tenet Healthcare Corp. Stock Overvalued? THC Valuation Analysis 2026
Based on fundamental analysis, Tenet Healthcare Corp. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Tenet Healthcare Corp. Balance Sheet: THC Debt, Cash & Liquidity
THC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Tenet Healthcare Corp.'s revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $5.71 reflects profitable operations.
THC Revenue Growth, EPS Growth & YoY Performance
THC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.1B | $579.0M | $3.86 |
| Q2 2025 | $5.1B | $477.0M | $2.64 |
| Q1 2025 | $5.2B | $622.0M | $4.27 |
| Q3 2024 | $5.1B | $266.0M | $0.94 |
| Q2 2024 | $5.1B | $293.0M | $1.15 |
| Q1 2024 | $5.0B | $296.0M | $1.32 |
| Q3 2023 | $4.8B | $266.0M | $0.94 |
| Q2 2023 | $4.6B | $179.0M | $0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Tenet Healthcare Corp. Dividends, Buybacks & Capital Allocation
THC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Tenet Healthcare Corp. (CIK: 0000070318)
📋 Recent SEC Filings
❓ Frequently Asked Questions about THC
What is the AI rating for THC?
Tenet Healthcare Corp. (THC) has an AI rating of HOLD with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are THC's key strengths?
Claude: Strong free cash flow of $2.5B with 11.9% FCF margin demonstrates operational cash conversion quality. Excellent interest coverage ratio of 16.1x provides substantial debt service safety despite $13.1B long-term debt.
What are the risks of investing in THC?
Claude: Net income collapse of 40.6% YoY with EPS down 52.6% indicates significant below-operating-line deterioration despite stable operating performance. High leverage at 3.10x debt-to-equity ratio magnifies impact of earnings volatility on shareholder value.
What is THC's revenue and growth?
Tenet Healthcare Corp. reported revenue of $21.3B.
Does THC pay dividends?
Tenet Healthcare Corp. does not currently pay dividends.
Where can I find THC SEC filings?
Official SEC filings for Tenet Healthcare Corp. (CIK: 0000070318) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is THC's EPS?
Tenet Healthcare Corp. has a diluted EPS of $15.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is THC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Tenet Healthcare Corp. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is THC stock overvalued or undervalued?
Valuation metrics for THC: ROE of 33.3% (sector avg: 15%), net margin of 6.6% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy THC stock in 2026?
Our dual AI analysis gives Tenet Healthcare Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is THC's free cash flow?
Tenet Healthcare Corp.'s operating cash flow is $3.5B, with capital expenditures of $1.0B. FCF margin is 11.9%.
How does THC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 6.6% (avg: 12%), ROE 33.3% (avg: 15%), current ratio 1.76 (avg: 2).
Is Tenet Healthcare Corp. carrying too much debt?
THC has a debt-to-equity ratio of 3.10x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.76 suggests adequate short-term liquidity.
Why is THC's return on equity (ROE) so high?
Tenet Healthcare Corp. has a return on equity of 33.3%, significantly above the Healthcare sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 6.6% net margin.