Community Healthcare (CHCT) AI Stock Analysis

• Market Cap: $419.26M
• Dividend Yield: 12.63%
• Average Volume (3M): 305.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 2.96%
• EPS Growth: -877.53%
• Country: US
• Employees: 36
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.50
• Shares Outstanding: 28,366,743
• 10 Day Avg. Volume: 251,552
• 30 Day Avg. Volume: 305,470
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.26
• Enterprise Value/Revenue: 7.95
• Enterprise Value/Gross Profit: 11.13
• Enterprise Value/Ebitda: 15.41
• 1Y Price Target: $19.50
• Price Target Upside: 28.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: $14.50 ▼(-4.10% Downside)

Community Healthcare's stock score is primarily impacted by its financial performance, which shows revenue and cash flow growth but struggles with profitability and increased leverage. Technical indicators suggest bearish momentum, while valuation is mixed with a high dividend yield but negative P/E ratio. The earnings call provided some positive strategic insights but also highlighted financial challenges.

Positive Factors

Financial Performance

The company collected rent and interest of $200K from a previously problematic tenant, indicating a positive development.

Financial Stability

The company has no debt maturities until 2028, which strengthens its financial stability.

Growth and Expansion

CHCT acquired a property for $9.7 million with a lease extending through 2040, showing growth in their property portfolio.

Negative Factors

Lease and Interest Payment Uncertainty

The company did not give any update regarding the uncertainty around collecting lease and interest payments from a tenant operating a geriatric inpatient behavioral hospital announced in 2Q.

Community Healthcare Business Overview & Revenue Model

Company Description

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.

How the Company Makes Money

Community Healthcare generates revenue primarily through a multi-faceted approach that includes reimbursement from government programs, such as Medicare and Medicaid, for the services rendered to eligible patients. A significant portion of the company's earnings also comes from private insurance reimbursements, which are negotiated to ensure fair compensation for the services provided. Additionally, CHCT may receive funding through grants and partnerships with nonprofit organizations, which help support specific health initiatives and programs. The company also engages in community outreach programs that may attract donations or sponsorships, further enhancing its revenue streams. By focusing on a diverse range of funding sources, CHCT ensures financial sustainability while fulfilling its mission to serve the community.

Community Healthcare Financial Statement Overview

Summary

Community Healthcare exhibits stable revenue growth and strong cash flow generation, integral for sustaining operations in the capital-intensive healthcare facilities sector. However, declining net income and negative profit margins present challenges, necessitating focus on cost efficiency and operational improvements to enhance profitability and shareholder value.

Income Statement

The income statement reflects a stable revenue growth with a 5.5% increase from 2023 to 2024. However, the company has experienced a consistent decline in net income, resulting in negative net profit margins, signaling potential operational inefficiencies. The gross profit margin remains strong at approximately 61.4% TTM, but EBIT and EBITDA margins have shown volatility, indicating fluctuating operating performance.

Balance Sheet

The balance sheet showcases a moderate debt-to-equity ratio of 1.08 TTM, suggesting a balanced approach to leveraging. However, the equity ratio decreased to 46.8%, highlighting increased liabilities. Return on equity is negative, reflecting the negative net income, which poses a risk to financial stability.

Cash Flow

Cash flow analysis indicates robust free cash flow generation with a growth rate of 6.4% TTM. The operating cash flow to net income ratio is strong at -10.3 times, showing the company's ability to generate cash despite net losses. The free cash flow to net income ratio is highly favorable, underscoring efficient capital management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.14M	115.79M	112.84M	97.68M	90.58M	75.68M
Gross Profit	85.06M	92.95M	92.13M	81.04M	75.42M	62.07M
EBITDA	61.45M	74.82M	64.79M	67.13M	64.43M	53.29M
Net Income	-7.38M	-3.18M	7.71M	22.02M	22.49M	19.08M
Balance Sheet
Total Assets	966.29M	992.56M	945.41M	876.42M	754.23M	668.40M
Cash, Cash Equivalents and Short-Term Investments	4.86M	4.38M	3.49M	11.23M	2.35M	2.48M
Total Debt	509.05M	489.98M	407.31M	357.06M	274.72M	213.17M
Total Liabilities	528.47M	516.60M	432.16M	379.61M	292.12M	238.49M
Stockholders Equity	437.82M	475.96M	513.26M	496.81M	462.11M	429.92M
Cash Flow
Free Cash Flow	36.46M	34.24M	42.40M	49.90M	49.13M	41.38M
Operating Cash Flow	57.72M	58.88M	61.38M	60.28M	56.35M	48.37M
Investing Cash Flow	-36.90M	-92.66M	-113.67M	-113.77M	-104.43M	-125.06M
Financing Cash Flow	-16.69M	33.53M	44.86M	62.69M	48.05M	77.56M

Community Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCT, the sentiment is Neutral. The current price of 15.12 is above the 20-day moving average (MA) of 14.91, below the 50-day MA of 15.71, and below the 200-day MA of 16.57, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 76.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHCT.

Community Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRW	72 Outperform	$149.67M	19.15	51.91%	4.68%	24.72%	30.05%
SILA	71 Outperform	$1.37B	34.91	2.71%	6.42%	0.43%	58.57%
GMRE	64 Neutral	$509.31M	104.01	1.94%	10.64%	0.90%	―
UHT	63 Neutral	$546.78M	30.45	10.08%	7.30%	0.14%	-0.76%
Sector *	63 Neutral	$6.92B	13.18	-0.57%	7.01%	3.62%	-22.63%
DHC	53 Neutral	$859.44M	―	-14.32%	1.05%	4.29%	18.89%
CHCT	48 Neutral	$419.26M	―	-2.22%	12.63%	2.96%	-877.53%

Community Healthcare Corporate Events

Community Healthcare Reports Q2 2025 Net Loss

Community Healthcare Trust reported a net loss of $12.6 million for the second quarter of 2025, with significant impacts from credit loss reserves and severance charges. The company made strategic acquisitions and disposals, including a behavioral specialty facility and an inpatient rehabilitation facility, and has six properties under purchase agreements, indicating ongoing expansion efforts. The company also declared a quarterly dividend, reflecting its commitment to shareholder returns.