📊 THC Key Takeaways
Is Tenet Healthcare Corp. (THC) a Good Investment?
Tenet Healthcare demonstrates strong operational cash flow generation ($1.5B FCF, 27.2% margin) and solid operating efficiency (24.1% margin), but faces significant profitability headwinds with net income down 40.6% YoY and EPS down 52.6% YoY despite modest 3.1% revenue growth. High leverage (2.73x debt/equity, $13.1B long-term debt) combined with deteriorating net profitability raises concerns about financial resilience, though interest coverage remains healthy at 5.9x.
Why Buy Tenet Healthcare Corp. Stock? THC Key Strengths
- Exceptional free cash flow generation of $1.5B with 27.2% FCF margin
- Solid operating margins of 24.1% demonstrate operational efficiency
- Strong interest coverage ratio of 5.9x provides debt service cushion
- Adequate liquidity with current ratio of 1.36x and $3.0B cash position
- Steady revenue growth of 3.1% YoY in competitive healthcare sector
THC Stock Risks: Tenet Healthcare Corp. Investment Risks
- Severe net income decline of 40.6% YoY and EPS decline of 52.6% YoY despite revenue growth signals profitability deterioration
- High leverage with 2.73x debt/equity ratio and $13.1B long-term debt limits financial flexibility
- Large gap between operating income ($1.3B) and net income ($702M) suggests substantial interest expense burden
- Low ROA of 2.2% indicates inefficient asset utilization
- Unknown cause of dramatic profitability decline requires investigation
Key Metrics to Watch
- Net income trend and margin recovery in subsequent quarters
- Operating expense ratio changes to identify cost control issues
- Debt reduction progress and refinancing activities
- Free cash flow sustainability amid profitability challenges
- Operating cash flow conversion ratio
Tenet Healthcare Corp. (THC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 27.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
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 |
|---|---|---|---|
| Q1 2026 | $5.2B | $622.0M | $4.27 |
| 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 |
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 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are THC's key strengths?
Claude: Exceptional free cash flow generation of $1.5B with 27.2% FCF margin. Solid operating margins of 24.1% demonstrate operational efficiency.
What are the risks of investing in THC?
Claude: Severe net income decline of 40.6% YoY and EPS decline of 52.6% YoY despite revenue growth signals profitability deterioration. High leverage with 2.73x debt/equity ratio and $13.1B long-term debt limits financial flexibility.
What is THC's revenue and growth?
Tenet Healthcare Corp. reported revenue of $5.4B.
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 $8.01.
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 May 2026, Tenet Healthcare Corp. has a HOLD rating with 68% 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 14.6% (sector avg: 15%), net margin of 13.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
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 above sector average. Always conduct your own research.
What is THC's free cash flow?
Tenet Healthcare Corp.'s operating cash flow is $1.6B, with capital expenditures of $180.0M. FCF margin is 27.2%.
How does THC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 13.1% (avg: 12%), ROE 14.6% (avg: 15%), current ratio 1.36 (avg: 2).
Is Tenet Healthcare Corp. carrying too much debt?
THC has a debt-to-equity ratio of 2.73x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.36 suggests adequate short-term liquidity.