Corporate Webpages Tenet Healthcare Inc.
Tenet Healthcare Inc. is a very large Texas-based $18 billion in annual
revenues healthcare insurance company. In 2017, a large activist
shareholder put pressure on the company to sell itself, possibly
to United Healthcare which was interested, because of what was
considered poor management and cost control. That activist was
Glennview Capital Management. Subsequently there were extensive
changes in management including the top CEO, and Glennview has
been an active acquirer of the stock, making this a rare
instance where an American stock has positive insider buying.
Tenet reports in three major segments, hospitals, ambulatory
care, and "Conifer." The company has provided guidance that it
intends to spin off Conifer by late 2021, even though Conifer is
a major contributor to revenues. The company has also been
wheeling and dealing selling and acquiring assets, but mostly
selling off assets.
The company has significant contracts with healthcare provider
networks including Aetna, Cigna, Blue Cross, and others.
The company has been in trouble in the past for overbilling
practices, but has largely recovered fromt that after the 1990's,
only to get involved in another scandal of performing unncessary
surgeries.
Researchers in particular but also analysts are mostly negative
on the stock. But Glennview purchases have been pushing the
share price higher and higher. The company has a huge debt load
and negative financial fundamentals according to the Zenith
Index. The stock chart looks a bit "toppy" and could heel over.
It is a channeling stock at the very top of a longstanding wide
trading range.
One particular news item investors should pay attention, and
that is the effect of political elections on healthcare stocks.
There is confusion on this in our opinion, with the election of
Trump seemingly benefitting such stocks but anything that
threatens Obamacare extremely negative for them. Deregulation
promoted by Republicans is beneficial to stocks in general along
with tax breaks, but while candidates like Warren vow to go
after big healthcare insurance corporations, any expansion of
the Affordable Healthcare Act that would "come with" is
considered beneficial to healthcare insurance companies.
Our assessment of Tenet is overall negative. Often when a
capital management corporation steps in to manage, things which
made a corporation great find themselves lost in attempts to
increase profits at the expensive of quality of services.
12-03-2019: Tenet Healthcare Inc. (THC): Activist Shareholder Intervention or Interferrence
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Standard & Poor's
Management's Discussion
Channel Potential
MACD Histogram
Intraday Chart
Val Idea
Stock Consultant
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Tenet Healthcare Corporation (THC) Exchange: NYSE
1445 Ross Avenue
Suite 1400 Sector: Healthcare
Dallas, TX 75202 Industry: Medical Care Facilities
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; physical therapy, orthopedic, oncology, and
outpatient services; cardiothoracic surgery, neonatal intensive care,
and neurosurgery services; quaternary care in heart, liver, kidney, and
bone marrow transplants areas; tertiary and quaternary pediatric, and
burn services; and limb-salvaging vascular procedures, acute level 1
trauma services, intravascular stroke care, minimally invasive cardiac
valve replacement, imaging technology, and telemedicine access for
various medical specialties. In addition, it operates ambulatory surgery
and urgent care centers, imaging centers, and surgical hospitals; and
offers healthcare business process services in the areas of hospital and
physician revenue cycle management, as well as value-based care
solutions to healthcare systems, individual hospitals, physician
practices, self-insured organizations, health plans, and other entities.
As of December 31, 2018, the company operated 68 hospitals, 23 surgical
hospitals, and approximately 475 outpatient centers, as well as 255
ambulatory surgery, 36 urgent care, and 23 imaging centers in the United
States. Tenet Healthcare Corporation was founded in 1967 and is
headquartered in Dallas, Texas.
Last Trade: 32.64 52-Week Range: 33.31 - 16.61
Employees: 90,090 Avg.Volume: 1,341,543 Shares
Corporate Governance:
Pillar scores are Audit: 1; Board: 2; Shareholder Rights: 1; Compensation: 2.
(A lower number means less governance risk.)
EPS: -2.32 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: Mar 12, 2000 Payout Ratio: 0.00
Key Statistics:
Trailing P/E: 0.00 Forward P/E (est.): 11.21
Target Price: 30.95
Qrtly Stock Price Growth (yoy): 31.56% Beta: 1.66
Qrtly S&P Index Growth (yoy): 1.80% Short Ratio: 8.15%
Qrtly Revenue Growth (yoy): 52.00% Shares Out: 103890000
Qrtly Earnings Growth (yoy): 0.00%
Book Value: -3.29 Debt/Equity: 816.55%
Price/Book Value: 0.00 Operating Profit Margin: 10.95%
Price/Sales: 0.19 Profit Margin: -1.31%
Market Cap: 3,436,000,000 Return on Equity: 5.71%
Enterprise Value: 21,420,000,000 Return on Assets: 5.49%
Operating Cash Flow: 1,049,000
Free Cash Flow: -200,000
Annual Income Statement: (All numbers in thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Total Revenue 18,313,000 19,179,000 19,621,000
Cost of Revenue 12,440,000 13,229,000 13,330,000
Gross Profit 5,873,000 5,950,000 6,291,000
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 0 12,359,000 12,480,000
Total Operating Expenses 4,256,000 4,561,000 4,859,000
Operating Income or Loss 1,617,000 1,389,000 1,432,000
Income from Continuing Operations:
Total Other Income/Expenses Net 26,000 -462,000 -205,000
Interest Expense 1,004,000 1,028,000 979,000
Income Before Taxes 639,000 -101,000 248,000
Income Tax Expense 176,000 219,000 67,000
Net Income from Continuing Op.s 463,000 -320,000 181,000
Non-recurring Events:
Extraordinary Items 352,000 384,000 373,000
Net Income 111,000 -704,000 -192,000
Net Income Avail to Common Shares 111,000 -704,000 -192,000
Annual Cash Flow Statement: (All numbers in thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Net Income 463,000 -320,000 181,000
Operating Activities:
Depreciation 802,000 870,000 850,000
Changes in Accounts Recv'bls -134,000 -1,448,000 -1,604,000
Changes in Liabilities 432,000 493,000 -317,000
Changes in Inventories 17,000 -35,000 -83,000
Changes in other Oper'g Acts -374,000 -1,505,000 -1,706,000
Total Cash Flow f Operations 1,049,000 1,200,000 558,000
Investing Activities:
Capital Exenditures -617,000 -707,000 -875,000
Investments -240,000 -118,000 -156,000
Other Cash Flows fr Investing 0 -17,000 -34,000
Total Cash Flows from Investing -115,000 21,000 -430,000
Financing Activities:
Dividends Paid 0 0 0
Sale of Purchase of Stock 0 0 0
Other Cash Flows fr Financing -861,000 -989,000 -34,000
Total Cash Flows from Financing -1,134,000 -1,326,000 232,000
Change in Cash & Cash Equiv. -200,000 -105,000 360,000
Annual Balance Sheets: (All Numbers in Thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Current Assets:
Cash & Cash Equivalents 611,000 716,000 356,000
Short Term Investments 0 0 0
Net Receivables 2,616,000 2,897,000 2,704,000
Inventory 289,000 326,000 309,000
Other Current Assets 1,035,000 1,285,000 1,245,000
Total Current Assets 5,573,000 5,257,000 5,171,000
Long-Term Investments 11,963,000 13,231,000 12,473,000
Property, Plant & Equipt 7,224,000 8,257,000 8,150,000
Goodwill 7,018,000 7,425,000 6,970,000
Intangible Assets 1,766,000 1,845,000 1,675,000
Other Assets 32,000 28,000 28,000
Total Assets 23,385,000 24,701,000 23,682,000
Current Liabilities:
Accounts Payable 1,175,000 1,329,000 1,380,000
Current Portion LT Debt 256,000 218,000 499,000
Other Current Liabilities 1,707,000 1,243,000 1,245,000
Total Current Liabilities 4,332,000 4,034,000 4,308,000
Long Term Debt 14,791,000 15,064,000 14,383,000
Other Liabilities 631,000 610,000 594,000
Total Liabilities 22,846,000 23,619,000 22,724,000
Stockholder Equity:
Common Stock 7,000 7,000 7,000
Retained Earnings -2,390,000 -1,742,000 -1,550,000
Capital Surplus -204,000 -258,000 -164,000
Total Stockholder Equity -147,000 417,000 691,000
Tenet Healthcare Corporation (THC) [Indices near +3.0, near zero,
or < zero bear special attention.]
P/E Ratio Tests:
P/E Ratio < 28? 0.0000 P/E Ratio > 5? 0.0000
P/E Ratio Vs Growth Rate: 0.0000 Forward P/E Ratio < 28? 2.4978
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 3.0000
Sales < $1 Billion? 0.0546 Operating Margin < 7.5%? 0.6849
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0490 Long-Term Debt Service: 0.0364
LTD Being Reduced? 0.0000 Short-Term Debt Service: 0.0000
Current Ratio > 2? 0.6432 Working Capital >= 1.5? 1.1815
Leverage Ratio < 20%? 0.0754 Debt/Assets < 1? 1.5810
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 0.0679
Share Equity Increase: 0.2510 Market Cap.< 1.5 Billion? 0.4366
Intangibles < 3% Assets? 0.0799
Income Tests:
Profit Margin < 7.5%? -0.1747 EPS Annual Growth > 10%? -0.6342
Dividend Yield > 2.0%? 0.0000 EPS 3-yr Growth > 15? -0.2595
Enterprise Value/Revenue 0.1884 EPS Growth Consistent? 0.0000
Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 0.8631
EPS Qrtly Growth > 10%? 0.0000 Gross Pft/Cur. LTD > 1? 3.0000
Borrowing Int. Rate < 6%? 0.8839
Stock Performance Tests:
Volatility > 25%? 2.0054 % Held by Insiders < 5%? 1.9763
Beta > 1.25? 1.3280 % Held by Institut. < 50? 0.4788
50 Da MA > 200 Da MA? 0.4688 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 0.6069 Short Ratio > 5? 1.6300
Price/Book Value < 3? 3.0000 Short % of Float > 20? 0.8555
Return on Assets > 17%? 0.3229 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: -3.0000 Positive Free Cash Flow? -1.0000
Positive Oper. Cash Flow? 3.0000 Price to C.F.Ratio < 14?: 3.0000
Cash Flow / Assets > 10%? 0.9827
THC Tenet Healthcare Corporation Overall Zenith Index: 0.9234
Financial Statements |
TENET HEALTHCARE CORP (THC) INCOME STATEMENT Fiscal year ends in December. USD in thousan 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Revenue 16,615,000 18,634,000 19,621,000 19,179,000 18,313,000 18,292,000 Cost of revenue 11,502,000 12,771,000 13,330,000 13,229,000 12,440,000 12,443,000 Gross profit 5,113,000 5,863,000 6,291,000 5,950,000 5,873,000 5,849,000 Operating expenses Other operating expenses 4,010,000 4,483,000 4,859,000 4,561,000 4,256,000 4,260,000 Total operating expenses 4,010,000 4,483,000 4,859,000 4,561,000 4,256,000 4,260,000 Operating income 1,103,000 1,380,000 1,432,000 1,389,000 1,617,000 1,589,000 Interest Expense 754,000 912,000 979,000 1,028,000 1,004,000 988,000 Other income (expense) -202,000 -324,000 -205,000 -462,000 26,000 -362,000 Income before taxes 147,000 144,000 248,000 -101,000 639,000 239,000 Provision for income taxes 49,000 68,000 67,000 219,000 176,000 123,000 Net income from continuing operations 98,000 76,000 181,000 -320,000 463,000 116,000 Net income from discontinuing ops -22,000 2,000 -5,000 0 3,000 11,000 Other -64,000 -218,000 -368,000 -384,000 -355,000 -366,000 Net income 12,000 -140,000 -192,000 -704,000 111,000 -239,000 Net income available to common shareholders 12,000 -140,000 -192,000 -704,000 111,000 -239,000 Earnings per share Basic 0.12 -1.41 -1.93 -7.00 1.09 -2.31 Diluted 0.12 -1.41 -1.93 -7.00 1.07 -2.31 Weighted average shares outstanding Basic 97,801 99,167 99,321 100,592 102,110 103,011 Diluted 100,287 99,167 99,321 100,592 103,881 103,415 ____________________________________________________________________________________________________________________________________________ TENET HEALTHCARE CORP (THC) BALANCE SHEET Fiscal year ends in December. USD in thousan 2014-12 2015-12 2016-12 2017-12 2018-12 Assets Current assets Cash Total cash 193,000 356,000 716,000 611,000 411,000 Receivables 2,404,000 2,704,000 2,897,000 2,616,000 2,595,000 Inventories 276,000 309,000 326,000 289,000 305,000 Deferred income taxes 747,000 0 0 0 0 Other current assets 1,097,000 1,802,000 1,318,000 2,057,000 1,325,000 Total current assets 4,717,000 5,171,000 5,257,000 5,573,000 4,636,000 Non-current assets Property, plant and equipment Gross property, plant and equipment 12,399,000 12,473,000 13,231,000 11,963,000 12,369,000 Accumulated Depreciation -4,478,000 -4,323,000 -4,974,000 -4,739,000 -5,221,000 Net property, plant and equipment 7,921,000 8,150,000 8,257,000 7,224,000 7,148,000 Equity and other investments 133,000 876,000 984,000 1,014,000 996,000 Goodwill 3,913,000 6,970,000 7,425,000 7,018,000 7,281,000 Intangible assets 1,278,000 1,675,000 1,845,000 1,766,000 1,731,000 Deferred income taxes 116,000 776,000 871,000 455,000 312,000 Other long-term assets 63,000 64,000 62,000 335,000 305,000 Total non-current assets 13,424,000 18,511,000 19,444,000 17,812,000 17,773,000 Total assets 18,141,000 23,682,000 24,701,000 23,385,000 22,409,000 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 112,000 127,000 191,000 146,000 182,000 Accounts payable 1,179,000 1,380,000 1,329,000 1,175,000 1,207,000 Accrued liabilities 194,000 499,000 218,000 256,000 240,000 Other current liabilities 2,092,000 2,302,000 2,296,000 2,755,000 2,228,000 Total current liabilities 3,577,000 4,308,000 4,034,000 4,332,000 3,857,000 Non-current liabilities Long-term debt 11,695,000 14,383,000 15,064,000 14,791,000 14,644,000 Deferred taxes liabilities 0 0 279,000 36,000 36,000 Pensions and other benefits 633,000 595,000 626,000 536,000 521,000 Minority interest 134,000 267,000 665,000 686,000 806,000 Other long-term liabilities 1,451,000 3,438,000 3,616,000 3,151,000 2,664,000 Total non-current liabilities 13,913,000 18,683,000 20,250,000 19,200,000 18,671,000 Total liabilities 17,490,000 22,991,000 24,284,000 23,532,000 22,528,000 Stockholders' equity Common stock 7,000 7,000 7,000 7,000 7,000 Additional paid-in capital 4,614,000 4,815,000 4,827,000 4,859,000 4,747,000 Retained earnings -1,410,000 -1,550,000 -1,742,000 -2,390,000 -2,236,000 Treasury stock -2,378,000 -2,417,000 -2,417,000 -2,419,000 -2,414,000 Accumulated other comprehensive income -182,000 -164,000 -258,000 -204,000 -223,000 Total stockholders' equity 651,000 691,000 417,000 -147,000 -119,000 Total liabilities and stockholders' equity 18,141,000 23,682,000 24,701,000 23,385,000 22,409,000 ____________________________________________________________________________________________________________________________________________ TENET HEALTHCARE CORP (THC) Statement of CASH FLOW Fiscal year ends in December. USD in thousan 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Cash Flows From Operating Activities Net income 111,000 75,000 182,000 -320,000 462,000 113,000 Depreciation & amortization 849,000 797,000 850,000 870,000 802,000 827,000 Investment/asset impairment charges 153,000 318,000 202,000 541,000 209,000 187,000 Deferred income taxes 30,000 42,000 41,000 200,000 150,000 97,000 Stock based compensation 51,000 69,000 68,000 59,000 46,000 46,000 Change in working capital -1,658,000 -1,638,000 -1,706,000 -1,505,000 -374,000 -449,000 Accounts receivable -1,896,000 -1,632,000 -1,604,000 -1,448,000 -134,000 -272,000 Inventory -314,000 -130,000 -83,000 -35,000 17,000 -154,000 Other working capital 552,000 124,000 -19,000 -22,000 -257,000 -23,000 Other non-cash items 1,151,000 1,363,000 921,000 1,355,000 -246,000 142,000 Net cash provided by operating activities 687,000 1,026,000 558,000 1,200,000 1,049,000 963,000 Cash Flows From Investing Activities Investments in property, plant, and equipmen -933,000 -842,000 -875,000 -707,000 -617,000 -705,000 Acquisitions, net -422,000 -525,000 417,000 709,000 303,000 -31,000 Sales/Maturities of investments 31,000 60,000 62,000 36,000 199,000 86,000 Other investing activities 2,000 -10,000 -34,000 -17,000 0 -11,000 Net cash used for investing activities -1,322,000 -1,317,000 -430,000 21,000 -115,000 -661,000 Cash Flows From Financing Activities Debt issued 3,853,000 5,753,000 2,655,000 4,765,000 973,000 8,326,000 Debt repayment -3,113,000 -4,864,000 -2,049,000 -5,109,000 -1,262,000 -8,483,000 Common stock repurchased 0 -40,000 0 0 0 0 Other financing activities -25,000 -395,000 -374,000 -982,000 -845,000 -331,000 Net cash provided by (used for) financing 715,000 454,000 232,000 -1,326,000 -1,134,000 -488,000 Net change in cash 80,000 163,000 360,000 -105,000 -200,000 -186,000 Cash at beginning of period 113,000 193,000 356,000 716,000 611,000 500,000 Cash at end of period 193,000 356,000 716,000 611,000 411,000 314,000 Free Cash Flow Operating cash flow 687,000 1,026,000 558,000 1,200,000 1,049,000 963,000 Capital expenditure -933,000 -842,000 -875,000 -707,000 -617,000 -705,000 Free cash flow -246,000 184,000 -317,000 493,000 432,000 258,000 ____________________________________________________________________________________________________________________________________________
Average to Current P/E Ratios |
(THC) Tenet Healthcare Corp.
2014 2015 2016 2017 2018
Annual Earnings: 0.12 -1.41 -1.93 -7.00 1.07
Average Price During Year: 49.09 46.92 26.58 16.70 26.96
P/E Ratio: 409.08 33.28 13.77 2.39 25.19
Average 5-Year P/E Ratio = 96.74
Current Price = 32.64
Previous 5 Quarter Earnings: -0.09 -0.05 -0.18 0.16 -2.24
Current Annualized (Last Four Quarters) Earnings = -2.26
________
Average PE / Current PE = -6.70
--------
...a number above 1.00 is good
1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Ownership:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for TENET HEALTHCARE INC.:
Symbol? THC
Total Months Available: 25
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
30.84 16.60 31.64 17.18 33.08 18.88
RANGE = 33.08 TO 16.60 Close = 32.20
CHANNEL = 30.84 TO 18.88 Degree = 7
Volatility = 37.14% Index = 26
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
2 out of 12 favorable, (negative opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
2 out of 3 of the ultimate systems favor a downmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | - 1 |
| Industry | + 1 |
| Bond Issue | + 1 |
| Zenith Index | - 1 |
| Non-GAAP vs. GAAP Earnings | + 1 |
| Cash Flow | - 1 |
| Average to Current P/E | - 1 |
| Ratios | - 1 |
| Intrinsic Value DCF | + 1 |
| Fair Value Estimator | - 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | - 1 |
| Insider Activity | + 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | - 1 |
| MACD Histogram Divergence | - 1 |
| Val Idea | - 1 |
| Stock Consultant | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | - 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | - 2 |
Place 905 shares of Tenet Healthcare, Inc. (THC) on the Active List.
