Community Health (CYH) AI Stock Analysis

• Market Cap: $502.83M
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 1.5
• Beta (1Y): 1.59
• Revenue Growth: 0.74%
• EPS Growth: N/A
• Country: US
• Employees: 45,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.27
• Shares Outstanding: 138,519,600
• 10 Day Avg. Volume: 1,488,503
• 30 Day Avg. Volume: 1,490,809
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.21
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 3.29
• Enterprise Value/Market Cap: 23.91
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 8.59
• 1Y Price Target: $3.93
• Price Target Upside: 21.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $3.50 ▲(8.02% Upside)

Community Health's overall stock score reflects a mix of positive earnings call outcomes and corporate events, offset by financial risks and neutral technical indicators. The stock's undervaluation is a potential opportunity, but high leverage and negative equity require cautious consideration.

Positive Factors

Leadership Changes

The appointment of experienced leaders as CEO and CFO is expected to drive strategic growth and enhance operational efficiency, providing a stable leadership structure for long-term success.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective pricing strategies, supporting long-term financial health and competitive positioning.

Leverage Reduction

Reducing leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities and manage economic uncertainties more effectively.

Negative Factors

Negative Revenue Growth

Negative revenue growth can signal declining demand or competitive pressures, potentially impacting long-term profitability and market share.

High Leverage

High leverage and negative equity pose financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Inflationary Pressures

Inflationary pressures can increase operational costs, squeezing margins and reducing profitability, challenging the company's ability to maintain competitive pricing.

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

Community Health generates revenue primarily through patient services, billing for healthcare services provided to patients in its facilities. This includes payments from private insurance, Medicare, and Medicaid for medical treatments, surgeries, and hospital stays. Additionally, CYH earns income from outpatient services, diagnostic testing, and specialized health programs. The company also benefits from partnerships with government health programs and philanthropic organizations that support community health initiatives, as well as grants and funding for specific health programs aimed at enhancing community wellness. These diverse revenue streams help to stabilize the company's financial health while allowing it to reinvest in its facilities and services.

Community Health Financial Statement Overview

Summary

Community Health's financial performance is mixed. While profitability margins are healthy, the company faces significant financial risks due to high leverage and negative equity. The negative revenue growth trend further complicates the outlook, despite recent improvements in cash flow.

Income Statement

Community Health's income statement shows mixed results. The TTM data indicates a slight decline in revenue growth at -2.4%, which is concerning. However, the company maintains a positive gross profit margin of 53.12% and a modest net profit margin of 2.60%. The EBIT and EBITDA margins are also healthy at 11.36% and 14.89%, respectively. Despite these strengths, the negative revenue growth trend and past losses highlight potential risks.

Balance Sheet

The balance sheet reveals significant challenges, primarily due to negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates high leverage and potential financial instability. The return on equity is also negative, reflecting past losses. The equity ratio is not calculable due to negative equity, further emphasizing the company's financial risk.

Cash Flow

The cash flow statement shows some positive trends, with a 32.30% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.23, indicating some cash flow generation relative to net income. The free cash flow to net income ratio is 0.61, suggesting that the company is generating cash flow despite past net losses. However, the overall cash flow position remains a concern due to historical volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.64B	12.63B	12.49B	12.21B	12.37B	11.79B
Gross Profit	4.29B	5.27B	5.08B	4.91B	5.08B	4.42B
EBITDA	1.40B	1.25B	1.29B	1.17B	1.71B	1.01B
Net Income	329.00M	-516.00M	-133.00M	46.00M	230.00M	511.00M
Balance Sheet
Total Assets	13.24B	14.05B	14.46B	14.67B	15.22B	16.01B
Cash, Cash Equivalents and Short-Term Investments	123.00M	37.00M	38.00M	118.00M	507.00M	1.68B
Total Debt	11.24B	12.10B	12.17B	12.39B	12.82B	12.88B
Total Liabilities	14.19B	15.37B	15.28B	15.40B	16.03B	17.06B
Stockholders Equity	-1.50B	-1.91B	-1.39B	-1.37B	-1.37B	-1.63B
Cash Flow
Free Cash Flow	143.00M	120.00M	-257.00M	-115.00M	-600.00M	1.74B
Operating Cash Flow	493.00M	480.00M	210.00M	300.00M	-131.00M	2.18B
Investing Cash Flow	562.00M	-277.00M	-22.00M	-251.00M	-543.00M	191.00M
Financing Cash Flow	-965.00M	-204.00M	-268.00M	-438.00M	-495.00M	-909.00M

Community Health Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.24
• 50DMA: Negative
• 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 CYH, the sentiment is Neutral. The current price of 3.24 is below the 20-day moving average (MA) of 3.32, below the 50-day MA of 3.41, and above the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 7.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CYH.

Community Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	74 Outperform	$2.09B	24.23	8.58%	―	18.77%	6.88%
NHC	74 Outperform	$2.09B	20.83	9.94%	1.80%	23.74%	-18.99%
SEM	70 Outperform	$1.66B	15.35	5.57%	1.62%	-22.96%	-59.35%
EHC	64 Neutral	$10.75B	20.19	24.94%	0.65%	11.13%	27.53%
CYH	61 Neutral	$502.83M	1.50	―	―	0.74%	―
AVAH	58 Neutral	$1.90B	25.06	―	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Community Health Corporate Events

Community Health Appoints New CEO and CFO

On December 10, 2025, Community Health Systems, Inc. announced the appointment of Kevin J. Hammons as Chief Executive Officer and Jason K. Johnson as Chief Financial Officer, both effective immediately. Hammons, who has been with the company since 1997, previously served as CFO and interim CEO, while Johnson, with the company since 2012, served as interim CFO. These leadership changes are expected to drive the company’s growth and strategic priorities, as both executives bring extensive experience and understanding of the healthcare industry.

Community Health Completes Asset Sale to LabCorp

On December 1, 2025, Community Health Systems, Inc. completed the sale of select assets and leases of its ambulatory outreach business across 13 states to Laboratory Corporation of America Holdings for approximately $194 million in cash. This transaction, which was initially agreed upon in July 2025, represents a significant disposition for the company, impacting its financial statements and operations. The divestiture does not qualify as discontinued operations according to accounting standards, and the pro forma financial statements illustrate the transaction’s impact on the company’s financials as of September 30, 2025.

Community Health Sells Stake in Joint Ventures

On October 30, 2025, Community Health Systems, Inc. announced a definitive agreement to sell its 80% ownership interests in two joint ventures, which own and operate Tennova Healthcare – Clarksville and ancillary businesses, to Vanderbilt University Medical Center for $600 million. This transaction, expected to close in early 2026, is part of the company’s strategic divestitures and involves Vanderbilt purchasing the remaining ownership interests in these ventures. The deal is subject to regulatory approvals and closing conditions, and it highlights Community Health Systems’ ongoing efforts to streamline its operations and focus on core assets.

Community Health Reports Strong Q3 2025 Financial Results

Community Health Systems, Inc. announced its financial results for the third quarter ending September 30, 2025, reporting net operating revenues of $3.087 billion and a net income of $130 million, a significant improvement from the net loss in the same period in 2024. The company completed a refinancing initiative in August 2025, enhancing liquidity and supporting strategic initiatives, and announced divestitures and a definitive agreement with Labcorp to sell select assets, which are expected to impact its financial positioning and operations positively.

Community Health CEO Transitions to Consultancy Role

On September 30, 2025, Community Health Systems, Inc. announced that its retiring CEO, Tim L. Hingtgen, has entered into a consultancy agreement with the company. Effective October 1, 2025, Mr. Hingtgen will advise on healthcare operations and strategy until September 30, 2026, receiving a monthly fee while adhering to non-compete and conflict of interest restrictions.