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Tenet Healthcare Corporation ( Tenet ) is a diversified healthcare services company with its headquarters in Dallas, Texas, and a Global Business Center ( GBC ) in the Philippines that supports various enterprise-wide administrative functions. We operate our expansive, nationwide care delivery network through direct and indirect subsidiaries, as well as downstream partnerships and join…
16.46% operating margin is respectable but not wide. ROIC at 16.17%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 3.1%, steady but not accelerating. Margins contracted 12.3pp, which offsets some of the top-line progress.
ROIC dropped from 25.82% to 16.17%, capital efficiency is deteriorating. Net debt of $12.00B represents 4.7x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$21.45B
▲ +3.1% YoY
Net Income (TTM)
$1.70B
▼ -56.0% YoY
Op. Margin
18.00%
▼ -12.3pp YoY
ROIC
18.78%
▼ -9.7pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$2.53B
▲ +126.7% YoY
Op. Cash Flow (TTM)
$4.37B
▲ +72.9% YoY
Net Debt
$10.24B
Cash & Equiv.
$2.97B
5Y CAGR: +3.9%
5Y CAGR: -2.5%
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