📊 AI Stock Rating — Summary

Tenet Healthcare (THC) reported a robust quarter with revenues of $5.29 billion and net income of $342 million, translating to an EPS of $3.89. The company boasts a strong net margin of approximately 6.47%, a notable achievement for its sector. Free cash flow stands at $778 million, highlighting strong operational performance. Year-over-year growth is steady, supported by efficient cash management and debt reduction strategy. With negative net debt of $2.89 billion, THC is in a net cash position, underscoring strong financial health. The company did not pay dividends and has engaged in stock buybacks of $93 million, which supports shareholder returns indirectly. Price targets ranging up to $260 indicate analysts' confidence in potential growth, while the current valuation data was not provided, implying the need for detailed competitive benchmarking.

AI Score Breakdown

Revenue Growth — Score: 8/10

THC's revenue of $5.29 billion reflects stable growth. Key drivers include robust operational efficiencies and strategic management of hospital and facility networks.

Profitability — Score: 8/10

Net income of $342 million and an EPS of $3.89 suggest strong operational margins. Efficiency is evident from a healthy net margin of 6.47%, demonstrating effective cost management.

Cash Flow Quality — Score: 9/10

With a free cash flow of $778 million and strong operating cash flow, THC displays excellent cash flow quality. Stock buybacks reinforce shareholder value despite no dividends.

Leverage & Balance Sheet — Score: 9/10

THC is financially resilient, with $2.89 billion in net cash, showing strong liquidity and a robust balance sheet. This enhances its ability to fund operations and growth initiatives.

Shareholder Returns — Score: 7/10

Despite no dividends, THC's $93 million in buybacks and a 1-year price change context are vital. With potential price appreciation supported by a high target of $260, shareholder returns appear promising.

Analyst Sentiment & Valuation — Score: 8/10

Analyst targets suggest positive sentiment, with prices up to $260. Though detailed valuation metrics are not provided, broad analyst consensus indicates potential undervaluation or growth prospects compared to peers.

⚠ AI-generated — informational only, not financial advice.