Tenet’s Cash Flow Gains Offset Slower Same-Store Sales

StockStory’s assessment of Tenet Healthcare after its second-quarter earnings says the company’s strengths outweigh a weakness in same-store sales. The publisher cited 18.6% annualized earnings-per-share growth over five years and a 13.9% trailing-12-month free-cash-flow margin.

Earnings per share grew faster than revenue, which increased at a 2.6% annualized rate over the same period, according to the article. Tenet’s free-cash-flow margin also widened by 11.7 percentage points in five years, which StockStory said showed stronger cash profitability.

Sales at locations open for at least a year averaged 1.7% year-on-year growth over the past two years. StockStory described that pace as weak compared with peers and said it might prompt changes to strategy or pricing that could disrupt operations.

The article put shares at $255.62 and valued them at 12.4 times forward earnings. It also said the stock had gained 34.3% over six months and returned 271% since October 2021, compared with the S&P 500’s 76% gain over that period.