Tenet Healthcare Corporation Common Stock (THC)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $266.91 on 2026-10-13, Tenet is a $21.5B market-cap hospital and ambulatory-care operator. The business is not a classic consumer franchise, but local hospital networks and outpatient centers can have a practical moat: scale, physician relationships, and payer contracts make it hard for new entrants to replicate. In fiscal Q2 2026, the quarter ended 2026-06-30, Tenet filed revenue of $5.6B, net income of $1.0B, and diluted EPS of $9.84. For FY2025, revenue was $21.3B and net income $2.4B, down from FY2024 net income of $4.1B, even though revenue rose from $20.7B. The five-year Lynch profile is a stalwart, with profit growth of 25.2% a year and revenue growth of 3.9%. Financial health is mixed: FairStock shows ROE of 37.34%, ROCE of 8.32%, debt-to-equity of 1.52, Piotroski 7/9, and Altman Z of 1.30, which suggests leverage and credit risk deserve attention. Cash generation is the bright spot: trailing free cash flow is $3.0B, a 14.1% FCF yield. Valuation is contradictory. The FairStock P/E is 10.32, EV/EBITDA is 5.84, and PEG is 0.06, which look cheap if profits persist. But the Graham Number is $183.48 and the margin of safety is -45.47%, meaning the price is well above a conservative asset-based value. I would want the debt reduced and earnings consistency proven before calling this a bargain.

In plain English: Tenet Healthcare runs hospitals and outpatient care centers in the United States. The business generates a lot of cash and has seen strong profit in some periods, but it carries significant debt and has a low financial safety cushion. At $266.91, the stock looks expensive compared with its balance-sheet value, though it does not look expensive compared with its current profits.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer