Community Health (CYH)
NYSE:CYH
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Community Health
(NYSE:CYH)
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Rating:56Neutral
Price Target:
$3.00
▼(-4.76% Downside)
Action:ReiteratedDate:04/02/26
The score is driven by improving profitability and cash generation, plus supportive earnings-call guidance around continued operational progress and deleveraging. This is held back by severe balance-sheet weakness (negative equity/high leverage) and weak technicals with the stock trading below major moving averages.
Positive Factors
Improved cash generation
Community Health's return to positive operating cash flow and free cash flow is a durable improvement that strengthens internal funding for capex, debt paydown and working capital. Sustained cash generation reduces dependence on external financing and supports the deleveraging plan over the next several quarters.
Negative Factors
Persistently negative equity
Negative equity across reported periods constrains financial flexibility and can restrict capital allocation choices. It amplifies refinancing and covenant risk, undermines the company’s ability to absorb shocks and raises the bar for sustained profitability needed to restore a healthy balance sheet over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Community Health's return to positive operating cash flow and free cash flow is a durable improvement that strengthens internal funding for capex, debt paydown and working capital. Sustained cash generation reduces dependence on external financing and supports the deleveraging plan over the next several quarters.
Read all positive factors
Community Health (CYH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$436.67M
Dividend YieldN/A
Average Volume (3M)1.36M
Price to Earnings (P/E)0.8
Beta (1Y)1.60
Revenue Growth0.74%
EPS GrowthN/A
CountryUS
Employees45,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.01
Shares Outstanding138,625,760
10 Day Avg. Volume1,016,168
30 Day Avg. Volume1,362,423
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.30
Price to Sales (P/S)0.03
P/FCF Ratio2.01
Enterprise Value/Market Cap26.92
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit10.87
Enterprise Value/Ebitda7.28
Forecast
1Y Price Target
$3.55Price Target Upside12.70% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)-0.41
Revenue Forecast (FY)$11.84B
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, psy...
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 ad...
Community Health Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call communicates meaningful operational and financial progress — sequential margin expansion, improved cash flow and a clear deleveraging path supported by divestiture proceeds and targeted cost controls — along with ongoing strategic investments and technology/AI initiatives. However, there are notable near-term headwinds: modest volume softness, the revenue impact of multiple divestitures, exposure to lower ACA exchange enrollment (modeled as a $20M–$30M EBITDA headwind), rising medical specialist fees (5%–8% expected), and a ~$140M cash flow drag from an extra payroll period in 2026. On balance, the company has demonstrated positive momentum on margins, cash generation and balance-sheet repair while acknowledging manageable operational and market risks that have been incorporated into conservative 2026 guidance.Positive Updates
Same-Store Revenue and Pricing Momentum
Same-store net revenue for Q4 increased 2.1% year-over-year, driven by a 2.4% increase in net revenue per adjusted admission.
Negative Updates
Volume Softness in Key Areas
Same-store inpatient admissions and adjusted admissions were down 0.3% in Q4; same-store surgeries declined 1.9% and ED visits declined 3.6% (excluding recently divested Pennsylvania ops, admissions/adjusted admissions were flat and surgeries were down 0.4%).
Read all updates
Q4-2025 Updates
Positive
Negative
Same-Store Revenue and Pricing Momentum
Same-store net revenue for Q4 increased 2.1% year-over-year, driven by a 2.4% increase in net revenue per adjusted admission.
Read all positive updates
Company Guidance
CHS’s initial 2026 guidance calls for net revenue of $11.6–$12.0 billion, adjusted EBITDA of $1.34–$1.49 billion, cash flows from operations of $600–$700 million and capital expenditures of $350–$400 million; the company says this reflects roughly 4% core same‑site growth (after an estimated $20–$30 million EBITDA headwind from reduced HICS/enrollment), starts from a 2025 EBITDA baseline of about $1.36 billion, and excludes potential state‑directed payment and rural transformation benefits. The bridge subtracts divestiture impacts (about $30–$40 million of EBITDA from 2025‑completed sales and roughly $80–$90 million from the 2026 class; ~$210–$230 million of 2025 net revenue from early 2025 divestitures and ~ $1.0 billion net revenue reduction from 2026 announced/expected sales), and incorporates a ~$140 million 2026 cash headwind from an extra payroll period; Q4 2025 adjusted EBITDA was $395 million (12.7% margin), Q4 same‑store net revenue +2.1% and net revenue per adjusted admission +2.4%, Q4 medical specialist fees $169 million (5.4% of revenue, expected to grow 5–8% in 2026), FY25 cash flow from operations $543 million ($712 million adjusted excluding divestiture taxes) with adjusted free cash flow $150 million, year‑end 2025 leverage 6.6x (net debt $10.1 billion, expected to fall to ~ $9.2 billion after Huntsville), and no ABL draws with next major maturity in 2029.Community Health Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
22
Negative
Cash Flow
64
Positive
| 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
Neutral
3.15
Price Trends
3.20
Negative
3.24
Negative
3.19
Negative
Market Momentum
-0.02
Negative
54.03
Neutral
66.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYH, the sentiment is Neutral. The current price of 3.15 is above the 20-day moving average (MA) of 3.00, below the 50-day MA of 3.20, and below the 200-day MA of 3.19, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CYH.
Community Health Risk Analysis
Community Health disclosed 37 risk factors in its most recent earnings report. Community Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Community Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.47B | 17.67 | 11.57% | 1.80% | 23.74% | -18.99% | |
75 Outperform | $1.74B | 20.66 | 9.24% | ― | 18.77% | 6.88% | |
70 Outperform | $10.46B | 18.84 | 24.48% | 0.65% | 11.13% | 27.53% | |
62 Neutral | $2.03B | 12.54 | 5.57% | 1.69% | -22.96% | -59.35% | |
56 Neutral | $436.67M | 0.82 | -31.57% | ― | 0.74% | ― | |
53 Neutral | $1.46B | 7.31 | 953.09% | ― | 15.48% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CYH
Community Health
3.15
0.63
25.00%
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NHC
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SEM
Select Medical
16.38
0.34
2.15%
AVAH
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6.72
2.16
47.37%
Community Health Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Community Health Systems Completes Major Hospital Asset Sale
Positive
Apr 1, 2026
On April 1, 2026, CHS/Community Health Systems, Inc., a subsidiary of Community Health Systems, completed the sale of Crestwood Medical Center in Huntsville, Alabama, along with related outpatient centers and practices, to Huntsville Hospital Heal...
Business Operations and StrategyM&A Transactions
Community Health Divests Four Arkansas Hospitals to Freeman
Neutral
Mar 5, 2026
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 ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Community Health Advances Portfolio Streamlining and Debt Reduction
Positive
Feb 18, 2026
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 as...
Business Operations and StrategyExecutive/Board Changes
Community Health Sets 2026 Performance-Linked Executive Compensation Packages
Positive
Feb 11, 2026
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, $630,0...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Community Health Completes Major Clarksville Joint Venture Sale
Positive
Feb 2, 2026
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...
Business Operations and StrategyM&A Transactions
Community Health to Sell Crestwood Medical Center Assets
Neutral
Jan 20, 2026
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, A...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.