Community Health Systems (CYH)
NYSE:CYH
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Community Health
(NYSE:CYH)
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Rating:43Neutral
Price Target:
$3.00
▼(-5.06% Downside)
Action:Reiterated
Date:06/02/26
The score is held down primarily by weak financial fundamentals—especially negative equity, volatile profitability quality, and inconsistent free cash flow. Technicals also indicate a sustained downtrend. Offsetting factors include unchanged 2026 guidance and ongoing deleveraging/portfolio actions discussed on the earnings call, but near-term volume and cash flow pressure keep risk elevated.
Positive Factors
Deleveraging via asset sales
Material divestiture proceeds provide durable liquidity to pay down secured debt and fund strategic priorities. Over the medium term these actions lower absolute interest burden and improve covenant headroom, increasing financial flexibility to execute ASC investments and further deleveraging.
Negative Factors
Negative shareholders' equity
A sustained equity deficit constrains financial flexibility and complicates leverage metrics, increasing refinancing and covenant risk. Negative equity also reduces options for equity raises, weakens stakeholder confidence, and limits the firm's ability to absorb operating shocks without additional asset sales or restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging via asset sales
Material divestiture proceeds provide durable liquidity to pay down secured debt and fund strategic priorities. Over the medium term these actions lower absolute interest burden and improve covenant headroom, increasing financial flexibility to execute ASC investments and further deleveraging.
Read all positive factors
Community Health Key Performance Indicators (KPIs)
Community Health (CYH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$442.48M
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth-2.87%
EPS GrowthN/A
CountryUS
Employees45,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.67
Shares Outstanding140,916,720
10 Day Avg. Volume1,354,176
30 Day Avg. Volume1,421,823
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 Cap23.66
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit0.91
Enterprise Value/Ebitda2.11
Forecast
1Y Price Target
$3.50Price Target Upside10.76% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.61
Revenue Forecast (FY)$11.60B
Community Health Business Overview & Revenue Model
Company Description
Community Health Systems, Inc. (CYH) operates as a major healthcare provider across the United States, focusing on the ownership, leasing, and management of general acute care hospitals. The organization offers a comprehensive array of medical ser...
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:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: management highlighted meaningful strategic progress (divestitures generating >$1.1B, targeted ASC investments, expected quality rating improvements, improved supply management and reduced contract labor) and maintained full-year guidance, but near-term operating performance showed meaningful softness (adjusted EBITDA down 17.8%, negative operating cash flow, volume and payer-mix pressures, and divestiture-related EBITDA drag). Policy and macroeconomic uncertainties add risk to the outlook. Overall, positives (strategic capital moves, quality improvements, deleveraging) are balanced by significant short-term operational and cash flow headwinds.Positive Updates
Adjusted EBITDA and Margin
Adjusted EBITDA of $309 million in Q1 2026 with a margin of 10.4%, reflecting continued profitability while acknowledging quarter-specific headwinds.
Negative Updates
Quarterly EBITDA Decline
Adjusted EBITDA declined 17.8% year-over-year, driven by strategic divestitures, volume weakness and investments that compressed margins in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA and Margin
Adjusted EBITDA of $309 million in Q1 2026 with a margin of 10.4%, reflecting continued profitability while acknowledging quarter-specific headwinds.
Read all positive updates
Company Guidance
Management said 2026 guidance is unchanged with adjusted EBITDA still targeted at $1.34 billion to $1.49 billion; Q1 adjusted EBITDA was $309 million (10.4% margin) with same‑store net revenue up 3.1% while same‑store adjusted admissions fell 0.5% and same‑store inpatient admissions were down 1.3%. They are modeling low single‑digit volume growth for the year, the company’s bridge assumed roughly $110 million of revenue (about $25 million of EBITDA) related to exchange dynamics, Q1 included roughly $25 million of out‑of‑period benefit from Georgia’s state directed payment program (partly offset by higher Indiana provider taxes), and recently divested hospitals produced about a $25 million negative EBITDA swing versus +$25 million a year ago. Management also noted >$1.1 billion of gross divestiture proceeds to date (including a pending $112 million Arkansas sale), redemption of $223 million of 2032 notes, planned ASC investments of ≈$85 million, quarter‑end leverage of 6.5x (down from 6.6x at year‑end 2025) with net debt expected to be ~ $9.3 billion after the Arkansas sale, and that potential upside from additional state direct payment programs and the Rural Health Transformation Fund could alter guidance later but there is insufficient data today to change the outlook.Community Health Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
18
Very Negative
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.48B | 12.48B | 12.63B | 12.49B | 12.21B | 12.37B |
| Gross Profit | 11.53B | 1.08B | 5.27B | 5.08B | 4.91B | 5.08B |
| EBITDA | 4.96B | 2.02B | 1.25B | 1.29B | 1.17B | 1.71B |
| Net Income | -88.00M | 509.00M | -516.00M | -133.00M | 46.00M | 230.00M |
Balance Sheet | ||||||
| Total Assets | 13.18B | 13.20B | 14.05B | 14.46B | 14.67B | 15.22B |
| Cash, Cash Equivalents and Short-Term Investments | 712.00M | 260.00M | 37.00M | 38.00M | 118.00M | 507.00M |
| Total Debt | 10.76B | 11.58B | 12.10B | 12.17B | 12.39B | 12.82B |
| Total Liabilities | 14.14B | 14.04B | 15.37B | 15.28B | 15.40B | 16.03B |
| Stockholders Equity | -1.45B | -1.39B | -1.91B | -1.39B | -1.37B | -1.37B |
Cash Flow | ||||||
| Free Cash Flow | -200.00M | 208.00M | 120.00M | -257.00M | -115.00M | -600.00M |
| Operating Cash Flow | 126.00M | 543.00M | 480.00M | 210.00M | 300.00M | -131.00M |
| Investing Cash Flow | 1.43B | 847.00M | -277.00M | -22.00M | -251.00M | -543.00M |
| Financing Cash Flow | -1.27B | -1.17B | -204.00M | -268.00M | -438.00M | -495.00M |
Community Health Technical Analysis
Neutral
3.16
Price Trends
2.90
Positive
3.05
Negative
3.17
Negative
Market Momentum
0.05
Negative
55.50
Neutral
76.60
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 3.16 is above the 20-day moving average (MA) of 2.87, above the 50-day MA of 2.90, and below the 200-day MA of 3.17, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.60 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 | $3.00B | 24.02 | 11.68% | 1.80% | 11.40% | 13.96% | |
77 Outperform | $1.77B | 17.40 | 9.34% | ― | 19.55% | 21.54% | |
72 Outperform | $9.90B | 15.94 | 25.35% | 0.65% | 10.05% | 23.59% | |
63 Neutral | $1.64B | 6.19 | 241.47% | ― | 20.49% | 4335.46% | |
62 Neutral | $2.06B | 15.31 | 7.83% | 1.69% | -10.76% | -20.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $442.48M | -4.57 | 5.89% | ― | -2.87% | ― |
* Healthcare Sector Average
CYH
Community Health
3.00
-0.31
-9.37%
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SEM
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Community Health Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Community Health finalizes major Arkansas hospital asset sale
Negative
Jun 1, 2026
On June 1, 2026, Community Health Systems completed the previously announced sale of substantially all assets and certain liabilities tied to four Northwest Arkansas hospitals and associated outpatient centers to Freeman Health System for $110 mil...
Executive/Board ChangesShareholder Meetings
Community Health Shareholders Reaffirm Board, Leadership and Governance
Positive
May 13, 2026
At its annual meeting of stockholders held on May 12, 2026, Community Health Systems, Inc. shareholders elected all 14 director nominees, including Chief Executive Officer Kevin J. Hammons and Executive Chairman Wayne T. Smith, to terms expiring a...
Business Operations and StrategyPrivate Placements and Financing
Community Health announces successful $600 million debt tender
Positive
May 6, 2026
On May 6, 2026, Community Health Systems announced early tender results for a previously launched cash tender offer of up to $600 million to repurchase portions of its 4.750% senior secured notes due 2031 and 10.875% senior secured notes due 2032....
Business Operations and StrategyPrivate Placements and Financing
Community Health Systems Launches $600 Million Debt Tender
Positive
Apr 23, 2026
On April 22, 2026, Community Health Systems announced that its wholly owned subsidiary launched a cash tender offer of up to $600 million for portions of its outstanding 4.750% senior secured notes due 2031 and 10.875% senior secured notes due 203...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Community Health Reports Wider Loss Amid Portfolio Rationalization
Negative
Apr 21, 2026
Community Health Systems, Inc. reported first-quarter 2026 results on April 21, 2026, with net operating revenues of $2.965 billion, down 6.1% year on year, and a widened net loss of $58 million, or $0.43 per diluted share, compared with a $13 mil...
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...
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.