Community Health (CYH) AI Stock Analysis

• Market Cap: $400.63M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 0.8
• Beta (1Y): 1.72
• Revenue Growth: 0.74%
• EPS Growth: N/A
• Country: US
• Employees: 45,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 138,625,760
• 10 Day Avg. Volume: 1,609,425
• 30 Day Avg. Volume: 1,593,895
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.30
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 2.01
• Enterprise Value/Market Cap: 29.26
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 10.83
• Enterprise Value/Ebitda: 7.26
• 1Y Price Target: $3.70
• Price Target Upside: 28.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.41
• Revenue Forecast (FY): $11.96B

• Rating: 60 Neutral
• Price Target: $3.00 ▲(3.81% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven by improving profitability and cash flow and a very low P/E, but is held back by high balance-sheet risk (negative equity and elevated net debt). Technicals are mildly supportive, while guidance and corporate actions show progress on deleveraging but also highlight near-term revenue and cash-flow headwinds.

Positive Factors

Improved Cash Generation

Consistent positive operating cash flow (TTM $543M) and free cash flow ($302M) provide a durable funding source for capex, working capital and debt reduction. This structural improvement increases financial flexibility and supports ongoing deleveraging even if cash generation remains variable.

Material Deleveraging via Asset Sales

Large divestiture proceeds (e.g., Clarksville ~$623M) and targeted note redemptions have meaningfully reduced high-coupon debt, lowering refinancing risk and interest burden. This durable capital-structure repair improves solvency and extends runway for strategic investments.

Sustainable Cost & Productivity Gains

ERP savings (~$50M) and early AI deployments (appeals, coding, ambient documentation) are delivering recurring efficiency gains. Technology-led cost reductions and targeted service-line wins support margin durability and higher throughput without proportionate labor inflation long-term.

Negative Factors

Negative Equity

Negative shareholders' equity (TTM -$837M) reflects deep capital impairment and constrains financial flexibility. Persistent negative equity raises refinancing and covenant risks, increasing dependence on asset sales and operational fixes to restore balance-sheet health over the medium term.

Shrinking Revenue Base from Divestitures

Planned and completed divestitures remove roughly $1.0B of net revenue from the 2026 baseline, shrinking scale and reducing fixed-cost absorption. While proceeds aid deleveraging, a smaller asset base can depress long-term revenue growth potential and raise per-unit overhead.

Payer Mix & Provider Cost Pressure

Modeled EBITDA exposure to lower ACA exchange enrollment and expected 5–8% growth in medical specialist fees create ongoing margin pressure. These structural payer-mix shifts and rising provider costs erode sustainable profitability absent sustained pricing power or additional efficiency gains.

Community Health Business Overview & Revenue Model

Company Description

Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, retail clinics, and direct-to-consumer virtual health visits. As of December 31, 2021, it owned or leased 83 hospitals, including 81 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals with an aggregate of 13,289 licensed beds. The company was founded in 1985 and is headquartered in Franklin, Tennessee.

How the Company Makes Money

CYH primarily makes money by providing healthcare services through its hospitals and related facilities and being reimbursed for those services by government programs, commercial insurers, and patients. Key revenue streams include (1) inpatient admissions (room/board, inpatient procedures, and other hospital services), (2) outpatient services (emergency department visits, outpatient surgeries, imaging, lab, and other ancillary services), and (3) other provider-related services tied to employed/affiliated physicians and ambulatory operations where applicable. Revenue is largely driven by patient volume and case mix, negotiated rates with commercial payers, and reimbursement methodologies and rates set by government payers (e.g., Medicare and Medicaid), as well as patient cost-sharing (deductibles, copays) and self-pay collections. Earnings are influenced by payer mix, reimbursement changes, supplemental or programmatic payments (where applicable), and the company’s ability to manage operating costs (labor, supplies) and collect receivables. Specific significant partnerships contributing to earnings: null.

Community Health Financial Statement Overview

Summary

Operations have rebounded with TTM profitability (net income $509M) and positive free cash flow ($302M). However, the balance sheet remains a major constraint with persistently negative equity (TTM -$837M) and historically high leverage, keeping financial risk elevated despite improving cash generation.

Income Statement

Profitability has improved meaningfully into TTM (Trailing-Twelve-Months), with net income turning positive ($509M) after losses in 2023–2024, and gross margin expanding sharply versus prior years. However, top-line growth is weak, with revenue slightly down in TTM (Trailing-Twelve-Months) after low single-digit growth in 2023–2024, and profit margins have been volatile over the cycle (losses as recently as 2024).

Balance Sheet

The balance sheet is the key weakness: stockholders’ equity is negative across all periods (TTM (Trailing-Twelve-Months): -$837M), which limits financial flexibility and makes leverage risk more acute. While reported total debt is much lower in TTM (Trailing-Twelve-Months) than in prior annual periods, the combination of negative equity and historically very heavy debt load increases refinancing and stability risk.

Cash Flow

Cash generation is a relative bright spot: operating cash flow is positive in TTM (Trailing-Twelve-Months) ($543M) and free cash flow is also positive ($302M), a clear improvement from negative free cash flow in 2021–2023. That said, cash flow has been uneven historically (including negative operating cash flow in 2021), and recent free cash flow covers only a portion of reported earnings, suggesting earnings quality is improving but not yet consistently strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.48B	12.63B	12.49B	12.21B	12.37B
Gross Profit	1.08B	5.27B	5.08B	4.91B	5.08B
EBITDA	2.02B	1.25B	1.29B	1.17B	1.71B
Net Income	509.00M	-516.00M	-133.00M	46.00M	230.00M
Balance Sheet
Total Assets	13.20B	14.05B	14.46B	14.67B	15.22B
Cash, Cash Equivalents and Short-Term Investments	260.00M	37.00M	38.00M	118.00M	507.00M
Total Debt	11.58B	12.10B	12.17B	12.39B	12.82B
Total Liabilities	14.04B	15.37B	15.28B	15.40B	16.03B
Stockholders Equity	-1.39B	-1.91B	-1.39B	-1.37B	-1.37B
Cash Flow
Free Cash Flow	208.00M	120.00M	-257.00M	-115.00M	-600.00M
Operating Cash Flow	543.00M	480.00M	210.00M	300.00M	-131.00M
Investing Cash Flow	847.00M	-277.00M	-22.00M	-251.00M	-543.00M
Financing Cash Flow	-1.17B	-204.00M	-268.00M	-438.00M	-495.00M

Community Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYH, the sentiment is Negative. The current price of 2.89 is below the 20-day moving average (MA) of 3.31, below the 50-day MA of 3.28, and below the 200-day MA of 3.23, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 32.87 is Neutral, neither overbought nor oversold. The STOCH value of 7.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYH.

Community Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	78 Outperform	$2.47B	17.67	9.94%	1.80%	23.74%	-18.99%
ADUS	75 Outperform	$1.85B	20.66	9.24%	―	18.77%	6.88%
EHC	70 Outperform	$9.53B	18.84	24.48%	0.65%	11.13%	27.53%
SEM	62 Neutral	$2.02B	12.54	5.57%	1.69%	-22.96%	-59.35%
CYH	60 Neutral	$400.63M	0.82	-31.57%	―	0.74%	―
AVAH	53 Neutral	$1.42B	7.31	953.09%	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Community Health Corporate Events

Community Health Divests Four Arkansas Hospitals to Freeman

On March 5, 2026, Community Health Systems said a subsidiary signed a definitive agreement to sell substantially all assets of four Arkansas hospitals and related outpatient centers and practices to Freeman Health System for $112 million, subject to typical working capital and lease adjustments. The facilities include Northwest Medical Center – Bentonville, Northwest Medical Center – Springdale, Northwest Medical Center – Willow Creek Women’s Hospital in Johnson and Siloam Springs Regional Hospital.

The transaction, which was flagged previously as part of CHS’s potential divestiture program, is expected to close in the second quarter of 2026, pending customary regulatory approvals and closing conditions. The deal continues the company’s strategy of reshaping its hospital portfolio, with implications for its Arkansas footprint and capital structure, and Leerink Partners is acting as exclusive financial adviser.

The most recent analyst rating on (CYH) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.

Community Health Advances Portfolio Streamlining and Debt Reduction

Community Health Systems reported fourth-quarter 2025 net operating revenues of $3.106 billion, down 4.9% year-on-year, but turned a net income of $110 million, or $0.81 per diluted share, compared with a loss a year earlier, helped by gains on asset sales despite lower volumes and a decline in adjusted EBITDA to $395 million. For full-year 2025, net operating revenues slipped 1.2% to $12.485 billion, yet the company swung to net income of $509 million, or $3.77 per diluted share, from a $516 million loss in 2024, as it benefited from portfolio rationalization, legal-settlement proceeds and improved reimbursement, even as adjusted EBITDA edged down to $1.526 billion and volumes softened.

The company further strengthened its balance sheet by redeeming a total of $445 million of 10.875% Senior Secured Notes due 2032 and retiring remaining 5.625% notes due 2027, leaving about $1.78 billion of the 2032 issuance outstanding as of mid-February 2026. In 2025 it divested equity stakes in multiple hospitals, sold four additional hospitals, monetized its ambulatory outreach lab business to Laboratory Corporation of America Holdings for $194 million, and completed the sale of three Pennsylvania hospitals to Tenor Health Foundation effective February 1, 2026, underscoring a strategic shift toward a leaner hospital portfolio and reduced leverage.

The most recent analyst rating on (CYH) stock is a Buy with a $3.50 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.

Community Health Sets 2026 Performance-Linked Executive Compensation Packages

On February 10, 2026, Community Health Systems’ board set 2026 compensation packages for CEO Kevin J. Hammons, CFO Jason K. Johnson, and EVP of Operations and Development Kevin A. Stockton, establishing base salaries of $1.25 million, $630,000, and $740,000, respectively. The board also defined cash incentive targets tied to performance goals under the 2019 Employee Performance Incentive Plan, with additional upside for non-financial improvements and overachievement, underscoring the company’s focus on performance-linked executive pay.

The board further approved substantial long-term equity awards under the amended 2009 Stock Option and Award Plan, including non-qualified stock options, time-vesting restricted stock, and performance-based restricted stock that can vest at 0% to 200% of target based on results from 2026 through 2028. These decisions align executive incentives with multi-year operational and financial performance, signaling an emphasis on retention and value creation for stakeholders in the coming years.

The most recent analyst rating on (CYH) stock is a Buy with a $3.50 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.

Community Health Completes Major Clarksville Joint Venture Sale

On February 1, 2026, a subsidiary of Community Health Systems completed the sale of its 80% ownership interest in joint ventures that own and operate Tennova Healthcare – Clarksville and certain ancillary businesses in Clarksville, Tennessee, to Vanderbilt University Medical Center and its affiliates, which had previously held a minority stake. The transaction generated $623 million in cash proceeds for the CHS selling entity, subject to post-closing working capital adjustments, and CHS subsidiaries concurrently paid about $23 million in cash to the purchaser to settle amounts owed to the joint ventures, representing a significant disposition for the company that will be reflected in unaudited pro forma financial information filed with regulators.

The most recent analyst rating on (CYH) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.

Community Health to Sell Crestwood Medical Center Assets

On January 20, 2026, Community Health Systems, Inc. announced that a subsidiary, CHS/Community Health Systems, Inc., entered into an asset purchase agreement to sell substantially all assets of the 180-bed Crestwood Medical Center in Huntsville, Alabama, along with associated outpatient centers and practices, to Huntsville Hospital Health System for $450 million, subject to customary adjustments. The deal, which was previously flagged as part of Community Health Systems’ broader divestiture plans discussed in 2025, is expected to close in the second quarter of 2026, provided specified closing conditions are met, and includes transition services arrangements under which CHS will provide IT and operational support post-closing; the agreement can be terminated if not completed by June 1, 2026, underscoring execution and timing risk for the company’s ongoing portfolio-optimization strategy.

The most recent analyst rating on (CYH) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.