Community Healthcare (CHCT) AI Stock Analysis

• Market Cap: $479.15M
• Dividend Yield: 12.08%
• Average Volume (3M): 249.17K
• Price to Earnings (P/E): 216.7
• Beta (1Y): 0.72
• Revenue Growth: 3.40%
• EPS Growth: -240.85%
• Country: US
• Employees: 36
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.51
• Shares Outstanding: 28,571,793
• 10 Day Avg. Volume: 411,306
• 30 Day Avg. Volume: 249,169
• PEG Ratio: -0.65
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 3.64
• P/FCF Ratio: 7.81
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 8.42
• Enterprise Value/Gross Profit: 13.46
• Enterprise Value/Ebitda: 13.16
• 1Y Price Target: $18.75
• Price Target Upside: 11.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): $128.25M

• Rating: 66 Neutral
• Price Target: $19.50 ▲(16.28% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

CHCT scores mid-range primarily due to steady revenue and strong, consistent cash generation alongside improved balance-sheet risk, but is held back by volatile/uncertain earnings reflected in a negative P/E. Technicals are supportive with price above key moving averages and positive MACD, and the earnings call was net constructive (FFO/AFFO growth, accretive transactions, dividend raise) despite tenant-transaction timing risk and constrained equity funding flexibility.

Positive Factors

Consistent cash generation

Sustained positive operating and free cash flow provides durable internal funding for dividends, redevelopment projects and acquisitions. This cash generation reduces reliance on external equity, supports liquidity and gives management flexibility to execute capital recycling and cover operating needs.

Material balance sheet improvement

Elimination of reported debt materially lowers leverage risk and increases financial flexibility, allowing CHCT to pursue acquisitions via revolver or 1031 exchanges while maintaining modest leverage. A cleaner balance sheet supports resilience through rate cycles and funding optionality.

Disciplined capital recycling and accretive deals

Realized gains and like‑kind reinvestments into assets yielding ~9%-plus indicate effective capital recycling. Consistently closing accretive acquisitions and a sizeable signed pipeline support sustainable FFO/AFFO growth and provide predictable income streams as assets stabilize.

Negative Factors

Volatile earnings history

Significant swings in net income undermine confidence in earnings quality and make cash‑flow forecasting harder. This volatility complicates dividend coverage assessment and planning for acquisitions, increasing execution risk over the medium term despite underlying revenue growth.

Key tenant/operator concentration risk

Concentration with an operator whose sale is uncertain creates structural exposure: lease terms, cash flows and occupancy could change if the operator transaction falters. Such tenant-level execution risk can drive sustained vacancy or renegotiation costs and affect portfolio stability.

Limited equity funding flexibility

Constrained access to accretive equity limits the company’s ability to scale via share-funded acquisitions, forcing reliance on dispositions, revolver borrowings or modest leverage. This restricts strategic optionality and may slow growth or necessitate suboptimal timing of asset sales.

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 through multiple streams, primarily by billing for medical services provided to patients. This includes fees for consultations, treatments, and diagnostic services covered by private insurance, Medicare, and Medicaid. Additionally, CHCT earns revenue from wellness programs and preventive care initiatives, which are often funded through grants and partnerships with local governments and health organizations. The company may also engage in value-based care contracts, where it receives bonuses or incentives for meeting specific health outcomes. Strategic partnerships with pharmaceutical companies and technology firms may further enhance its revenue through collaborative programs and research initiatives.

Community Healthcare Financial Statement Overview

Summary

Steady revenue growth and consistently solid operating cash flow/free cash flow support overall financial health. Balance sheet risk improved materially with no reported debt in 2025, but earnings quality is weakened by recent net income volatility (loss in 2024 and only modest profitability in 2025).

Income Statement

Revenue has grown steadily over time, with a particularly strong jump in the latest annual period. Profitability, however, has been volatile: net margin swung from healthy profits in 2020–2023 to a loss in 2024, then back to a small profit in 2025. While gross margins remain consistently strong, the uneven bottom-line results reduce confidence in earnings quality and stability.

Balance Sheet

The balance sheet shows meaningful improvement in leverage versus prior years: debt moved from moderate-to-high relative to equity in 2023–2024 to no reported debt in 2025, which materially lowers financial risk. That said, returns on equity are currently low and have been inconsistent (negative in 2024 and only modestly positive in 2025), suggesting limited efficiency in generating shareholder returns despite a sizable asset base.

Cash Flow

Operating cash flow has been consistently solid across the period, and free cash flow remains positive each year. The latest annual period shows a sharp improvement in free cash flow growth, supporting liquidity and funding flexibility. The key weakness is variability in cash flow support versus earnings across years, alongside the earnings volatility seen in 2024–2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	121.19M	115.79M	112.84M	97.68M	90.58M
Gross Profit	10.49M	92.95M	92.13M	81.04M	75.42M
EBITDA	82.71M	64.23M	66.25M	67.13M	64.43M
Net Income	5.10M	-3.18M	7.71M	22.02M	22.49M
Balance Sheet
Total Assets	990.76M	992.56M	945.41M	876.42M	754.23M
Cash, Cash Equivalents and Short-Term Investments	3.34M	4.38M	3.49M	11.23M	2.35M
Total Debt	543.16M	489.98M	412.28M	357.06M	269.39M
Total Liabilities	561.37M	516.60M	432.16M	379.61M	292.12M
Stockholders Equity	429.39M	475.96M	513.26M	496.81M	462.11M
Cash Flow
Free Cash Flow	56.43M	34.24M	42.40M	49.90M	49.13M
Operating Cash Flow	56.43M	58.88M	61.38M	60.28M	56.35M
Investing Cash Flow	-47.70M	-92.66M	-113.67M	-113.77M	-104.43M
Financing Cash Flow	-9.78M	33.53M	44.86M	62.69M	48.05M

Community Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCT, the sentiment is Positive. The current price of 16.77 is below the 20-day moving average (MA) of 16.99, above the 50-day MA of 16.35, and above the 200-day MA of 14.96, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 8.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHCT.

Community Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRW	75 Outperform	$161.51M	20.63	50.04%	4.62%	29.76%	22.76%
SILA	73 Outperform	$1.41B	42.76	2.34%	6.98%	3.74%	77.82%
CHCT	66 Neutral	$479.15M	216.67	0.46%	12.08%	3.40%	-240.85%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UHT	64 Neutral	$604.33M	33.63	10.55%	7.51%	0.68%	-1.34%
GMRE	55 Neutral	$527.49M	-146.25	0.49%	10.01%	2.73%	-131.16%
DHC	54 Neutral	$1.48B	-5.37	-15.78%	0.80%	4.10%	8.96%

Community Healthcare Corporate Events

Community Healthcare Trust Announces Dividend and Q4 Results

Community Healthcare Trust reported net income of about $14.4 million, or $0.51 per diluted share, for the quarter ended December 31, 2025, with FFO and AFFO of $0.49 and $0.55 per diluted share, respectively. The company’s board also declared a quarterly dividend of $0.4775 per share on February 12, 2026, payable March 4, 2026 to shareholders of record on February 23, 2026.

During the fourth quarter of 2025, the REIT acquired a fully leased inpatient rehabilitation facility in Florida for approximately $28.5 million, funded via a like-kind exchange following the sale of a Texas facility, and booked a net gain of about $12.3 million on three property disposals that generated $31.6 million in proceeds. It also continued to manage tenant risk at six geriatric behavioral hospitals amid a pending sale of the operator’s business, and lined up five additional properties under definitive purchase agreements totaling roughly $122.5 million in expected investments with projected returns above 9%, supporting future growth if the deals close as anticipated.

The most recent analyst rating on (CHCT) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Community Healthcare stock, see the CHCT Stock Forecast page.

Community Healthcare Expands Equity-Based Alignment of Interest Program

On January 5, 2026, Community Healthcare Trust Incorporated’s Board of Directors approved a Second Amendment to its Fourth Amended and Restated Alignment of Interest Program, increasing the pool by 500,000 restricted common shares. These additional shares are reserved for issuance to employees, officers and directors in lieu of cash compensation, further aligning management and staff incentives with shareholders through greater equity-based pay.

The most recent analyst rating on (CHCT) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Community Healthcare stock, see the CHCT Stock Forecast page.