IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
THC Stock Analysis: Hold (Score 53.1/100) | Blank Capital Research | Blank Capital Research
THC
TENET HEALTHCARE CORP
$195.54
-6.34 (-3.14%)
Score53.1
Data as of Apr 6, 2026
THC
TENET HEALTHCARE CORP
HealthcareHealthcare
$195.54
-6.34 (-3.14%)
Open $201.67High $203.80Low $195.28Prev $201.87Vol ---52W: $109.82 – $247.21
Catalyst IntelligenceBearish Factor
Context:Downward pressure following report: "Consistent Earnings Beats and Finance Leadership Stability Could Be A Game Changer For Tenet Healthcare (THC)". The 3.1% decline indicates institutional rebalancing.
Hold
Composite score
01234567890123456789.0123456789
Global rank
#975
Percentile
Top 22%
Business quality
50th
percentile
Standard operational efficiency. The business maintains stable margins and returns in line with broader market averages.
Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
40.0%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, TENET HEALTHCARE CORP (THC) receives a "Hold" rating with a composite score of 53.1/100, ranked #975 out of 4446 stocks. Key factor scores: Quality 50/100, Value 79/100, Momentum 56/100. This is quantitative analysis only — not investment advice.
TENET HEALTHCARE CORP (THC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TENET HEALTHCARE CORP Do?
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. TENET HEALTHCARE CORP (THC) is classified as a large-cap stock in the Healthcare sector. The company is led by CEO Saumya Sutaria and employs approximately 102,400 people, headquartered in Dallas, Texas. With a market capitalization of $16.5B, THC is one of the prominent companies in the Healthcare sector.
TENET HEALTHCARE CORP (THC) Stock Rating — Hold (April 2026)
As of April 2026, TENET HEALTHCARE CORP receives a Hold rating with a composite score of 53.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.THC ranks #975 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, TENET HEALTHCARE CORP ranks #69 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
THC Stock Price and 52-Week Range
TENET HEALTHCARE CORP (THC) currently trades at $195.53. The stock lost $6.34 (3.1%) in the most recent trading session. The 52-week high for THC is $247.21, which means the stock is currently trading -20.9% from its annual peak. The 52-week low is $109.82, putting the stock 78.0% above its annual trough. Recent trading volume was 765K shares, suggesting relatively thin trading activity.
Is THC Overvalued or Undervalued? — Valuation Analysis
TENET HEALTHCARE CORP (THC) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 7.04x, compared to the Healthcare sector average of 23.63x — a discount of 70%. The price-to-book ratio stands at 2.81x, versus the sector average of 2.75x. The price-to-sales ratio is 0.81x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, THC trades at 4.52x EV/EBITDA, versus 6.34x for the sector. The EV/EBIT multiple is 9.10x.
Based on these multiples, TENET HEALTHCARE CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
TENET HEALTHCARE CORP Profitability — ROE, Margins, and Quality Score
TENET HEALTHCARE CORP (THC) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 40.0%, compared to the Healthcare sector average of -43.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 8.1% versus the sector average of -33.1%.
On a margin basis, TENET HEALTHCARE CORP reports gross margins of 59.2%, compared to 71.5% for the sector. The operating margin is 17.9% (sector: -66.1%). Net profit margin stands at 11.5%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 3.6% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
THC Debt, Balance Sheet, and Financial Health
TENET HEALTHCARE CORP has a debt-to-equity ratio of 344.0%, compared to the Healthcare sector average of 32.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.76x, suggesting adequate working capital coverage. Total debt on the balance sheet is $13.17B. Cash and equivalents stand at $2.98B.
THC has a beta of 1.22, meaning it is more volatile than the broader market — a $10,000 investment in THC would be expected to move 22.2% more than the S&P 500 on any given day. The stability factor score for TENET HEALTHCARE CORP is 63/100, reflecting average volatility within the normal range for its sector.
TENET HEALTHCARE CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, TENET HEALTHCARE CORP reported revenue of $20.91B and earnings per share (EPS) of $15.61. Net income for the quarter was $2.40B. Gross margin was 59.2%. Operating income came in at $3.74B.
In FY 2025, TENET HEALTHCARE CORP reported revenue of $21.31B and earnings per share (EPS) of $15.61. Net income for the quarter was $2.37B. Revenue grew 3.1% year-over-year compared to FY 2024. Operating income came in at $3.51B.
In Q3 2025, TENET HEALTHCARE CORP reported revenue of $5.29B and earnings per share (EPS) of $3.89. Net income for the quarter was $579M. Revenue grew 3.3% year-over-year compared to Q3 2024. Operating income came in at $889M.
In Q2 2025, TENET HEALTHCARE CORP reported revenue of $5.27B and earnings per share (EPS) of $3.16. Net income for the quarter was $522M. Revenue grew 3.3% year-over-year compared to Q2 2024. Operating income came in at $823M.
Over the past 8 quarters, TENET HEALTHCARE CORP has demonstrated a growth trajectory, with revenue expanding from $5.10B to $20.91B. Investors analyzing THC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
THC Dividend Yield and Income Analysis
TENET HEALTHCARE CORP (THC) does not currently pay a dividend. This is common among growth-oriented companies in the Healthcare industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
THC Momentum and Technical Analysis Profile
TENET HEALTHCARE CORP (THC) has a momentum factor score of 56/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 27/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
THC vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing THC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full THC vs S&P 500 (SPY) comparison to assess how TENET HEALTHCARE CORP stacks up against the broader market across all factor dimensions.
THC Next Earnings Date
No upcoming earnings date has been announced for TENET HEALTHCARE CORP (THC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy THC? — Investment Thesis Summary
TENET HEALTHCARE CORP presents a balanced picture with arguments on both sides. The value score of 79/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 63/100) reduces downside risk.
In summary, TENET HEALTHCARE CORP (THC) earns a Hold rating with a composite score of 53.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on THC stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
TENET HEALTHCARE CORP (THC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Tenet Healthcare (THC), driven by a balanced view of its attractive valuation metrics offset by concerns regarding its high debt load and relatively weaker revenue growth compared to the broader healthcare sector. While Tenet's focus on ambulatory care and cost management initiatives presents opportunities for future earnings growth, the company's significant debt burden and exposure to regulatory changes in the healthcare industry warrant a cautious approach.
The company's current valuation, reflected in its low P/E and EV/EBITDA ratios relative to the sector, suggests potential undervaluation. However, this is tempered by its high debt-to-equity ratio and the inherent complexities of the healthcare services industry, including reimbursement pressures and evolving regulatory landscapes. Therefore, while Tenet presents an intriguing investment case, the risks associated with its financial leverage and industry-specific challenges necessitate a Hold rating.
Business Strategy & Overview
Tenet Healthcare operates as a diversified healthcare services company, primarily focusing on hospital operations, ambulatory care, and healthcare business process services. The company's strategy revolves around providing a comprehensive suite of healthcare services through its network of hospitals, ambulatory surgery centers, urgent care centers, and other care sites. This diversified approach allows Tenet to capture revenue across various segments of the healthcare market, mitigating risks associated with reliance on a single service line.
A key component of Tenet's strategy is its focus on expanding its ambulatory care segment. This segment includes ambulatory surgery centers, urgent care centers, and imaging centers, which offer lower-cost alternatives to traditional hospital settings. By increasing its presence in the ambulatory care market, Tenet aims to capitalize on the growing trend of patients seeking more convenient and affordable healthcare options. This strategic shift also aligns with the broader industry trend of moving towards value-based care models, where providers are incentivized to deliver high-quality care at lower costs.
Tenet also provides healthcare business process services through Conifer Health Solutions. Conifer offers revenue cycle management, patient communications, and value-based care solutions to hospitals, health systems, and physician practices. This segment generates revenue through service fees and helps Tenet diversify its revenue streams beyond direct patient care. Furthermore, Conifer's services can improve the efficiency and financial performance of healthcare providers, creating value for both Tenet and its clients.
The company's strategic positioning within the healthcare industry is characterized by a focus on operational efficiency and cost management. Tenet has implemented various initiatives to streamline its operations, reduce expenses, and improve profitability. These initiatives include optimizing staffing levels, standardizing clinical processes, and leveraging technology to enhance efficiency. By focusing on cost management, Tenet aims to improve its financial performance and maintain a competitive advantage in the healthcare market.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.6%
Sector: 10.6%
-66% VS SCTR
Economic Moat Analysis
Tenet Healthcare's economic moat can be characterized as narrow. While the company possesses certain advantages, such as its established network of hospitals and ambulatory care centers, these advantages are not strong enough to create a wide and sustainable competitive advantage. The healthcare industry is highly competitive, with numerous players offering similar services, which limits Tenet's ability to generate consistently high returns on invested capital.
One potential source of a narrow moat for Tenet is its network of hospitals and ambulatory care centers. These facilities provide a convenient and accessible source of healthcare services for patients in their respective communities. The established presence of these facilities can create a barrier to entry for new competitors, as it takes time and capital to build a similar network. However, this advantage is limited by the fact that patients often have multiple healthcare providers to choose from, and the switching costs are relatively low.
Another potential source of a narrow moat is Tenet's expertise in healthcare business process services through Conifer Health Solutions. Conifer provides revenue cycle management and other services that can improve the efficiency and financial performance of healthcare providers. This expertise can create a competitive advantage for Tenet, as it allows the company to offer valuable services to its clients. However, this advantage is also limited by the fact that there are other companies that offer similar services, and the switching costs for these services are relatively low.
Intangible assets, such as brand reputation, can also contribute to a narrow moat. Tenet has a well-established brand name in the healthcare industry, which can help the company attract patients and clients. However, brand reputation is not a strong enough advantage to create a wide moat, as patients and clients are often more concerned with the quality and cost of healthcare services than with the brand name of the provider.
Overall, Tenet Healthcare possesses a narrow economic moat due to its established network of facilities, expertise in healthcare business process services, and brand reputation. However, these advantages are not strong enough to create a wide and sustainable competitive advantage, as the healthcare industry is highly competitive and the switching costs for patients and clients are relatively low.
Financial Health & Profitability
Tenet Healthcare's financial health presents a mixed picture. The company has demonstrated strong revenue generation, with TTM revenue of $21.31 billion. However, revenue growth of 3.6% lags behind the sector average of 10.7%, indicating potential challenges in capturing market share. Net income is robust at $2.37 billion, translating to a net margin of 11.5%, significantly outperforming the sector average of -54.1%. This suggests effective cost management and operational efficiency.
Examining the quarterly financial history reveals fluctuations in net income and operating margin. While FY2024 showed a substantial net income of $4.06 billion, driven by a high operating margin of 28.8%, FY2025's performance, although still positive, indicates a normalization towards lower, albeit still healthy, levels. The Q1 2024 net income was particularly high due to an unusually high operating margin of 61.2%, which is unlikely to be sustainable. The operating margin for the most recent quarter, Q3 FY2025, is 16.8%.
Tenet's balance sheet is characterized by a significant debt burden. With total debt of $13.17 billion and total cash of $2.98 billion, the company's net debt position is substantial. The debt-to-equity ratio of 344.00 is significantly higher than the sector average of 30.00, raising concerns about financial leverage and potential vulnerability to interest rate fluctuations. However, the current ratio of 1.76 indicates adequate short-term liquidity to meet its current liabilities.
The company's return on equity (ROE) of 40.0% is exceptionally high compared to the sector average of -42.5%, indicating efficient utilization of equity to generate profits. This strong ROE partially mitigates concerns about the high debt level. Free cash flow (FCF) is also strong at $2.37 billion, providing the company with ample resources to service its debt, invest in growth initiatives, and potentially return capital to shareholders.
Overall, Tenet's financial health is characterized by strong profitability and cash flow generation, offset by a high level of debt. While the company's ROE and net margin are impressive, the high debt-to-equity ratio warrants careful monitoring. The relatively slower revenue growth compared to the sector also presents a challenge. The company's ability to manage its debt burden and accelerate revenue growth will be crucial for its long-term financial health.
Valuation Assessment
Tenet Healthcare's valuation presents an intriguing case, particularly when compared to its sector peers. The company's P/E ratio of 12.8x is significantly lower than the healthcare sector average of 24.3x, suggesting potential undervaluation. Similarly, its EV/EBITDA ratio of 1.2x is substantially below the sector average of 6.4x, further reinforcing the notion that the stock may be trading at a discount.
However, it's crucial to consider the context behind these valuation metrics. Tenet's high debt load likely contributes to the lower valuation multiples. Investors may be discounting the stock due to concerns about the company's financial leverage and its potential impact on future earnings. Additionally, the relatively slower revenue growth compared to the sector average may also be weighing on the valuation.
Despite these concerns, the company's strong profitability and cash flow generation provide some support for its valuation. The high ROE of 40.0% indicates efficient capital utilization, and the robust free cash flow of $2.37 billion provides the company with financial flexibility. These factors suggest that the stock may be undervalued, particularly if the company can successfully manage its debt burden and accelerate revenue growth.
The BCR proprietary quant model assigns a Value score of 79/100, indicating that the stock is relatively attractive from a value perspective. However, the overall composite score of 53.9/100 and the Hold rating suggest that the potential upside is balanced by risks and uncertainties. The Momentum score of 62/100 indicates some positive price momentum, but it is not strong enough to warrant a more bullish rating.
In conclusion, Tenet Healthcare's valuation appears attractive based on its P/E and EV/EBITDA ratios compared to the sector. However, the high debt load and relatively slower revenue growth warrant caution. The stock may be undervalued, but the potential upside is balanced by risks and uncertainties. A Hold rating is appropriate, reflecting a neutral stance on the stock's valuation.
Risk & Uncertainty
Tenet Healthcare faces several specific risks that could impact its financial performance and stock price. One significant risk is regulatory changes in the healthcare industry. Changes in government regulations, such as the Affordable Care Act (ACA) or Medicare reimbursement policies, could significantly affect Tenet's revenue and profitability. For example, reductions in reimbursement rates or changes in coverage requirements could negatively impact the company's financial results.
Another risk is competition from other healthcare providers. The healthcare industry is highly competitive, with numerous players offering similar services. Tenet faces competition from other hospital systems, ambulatory surgery centers, and urgent care centers. Increased competition could lead to lower prices, reduced market share, and decreased profitability. The rise of telehealth and other alternative care models also poses a competitive threat.
Tenet's high debt load is also a significant risk factor. The company has a substantial amount of debt outstanding, which increases its financial leverage and vulnerability to interest rate fluctuations. Rising interest rates could increase the company's interest expense, reducing its profitability and cash flow. Additionally, the high debt load could limit the company's ability to invest in growth initiatives or respond to competitive pressures.
Concentration risk is another potential concern. While Tenet operates a diversified network of facilities, a significant portion of its revenue may be derived from a limited number of key markets or contracts. A disruption in one of these key markets or the loss of a major contract could significantly impact the company's financial performance. Furthermore, the company's reliance on certain payers, such as government programs or large insurance companies, could expose it to risks associated with changes in payer policies or reimbursement rates.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTenet's focus on expanding its ambulatory care segment will drive future earnings growth as patients increasingly seek lower-cost, convenient healthcare options.
BULL VIEWThe company's strong free cash flow generation provides ample resources to deleverage its balance sheet and return capital to shareholders, enhancing shareholder value.
BULL VIEWTenet's attractive valuation, with a P/E ratio significantly below the sector average, presents a compelling investment opportunity for value-oriented investors.
The Bear Case
BEAR VIEWTenet's high debt load exposes the company to significant financial risk, particularly in a rising interest rate environment, potentially hindering its ability to invest in growth.
BEAR VIEWThe company's relatively slower revenue growth compared to the healthcare sector indicates a lack of competitive advantage and potential market share loss.
BEAR VIEWRegulatory changes in the healthcare industry, such as reductions in reimbursement rates, could significantly impact Tenet's revenue and profitability, undermining its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score THC and 4,400+ other equities.
TENET HEALTHCARE CORP exhibits a 37% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
8.1%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
59.2%
Sector: 71.5%
Operating Margin
Core business profitability
17.9%
Sector: -66.1%
Net Margin
Bottom-line profitability
11.5%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
