Community Health (CYH) AI Stock Analysis

• Market Cap: $514.92M
• Dividend Yield: N/A
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: 1.05%
• EPS Growth: -288.07%
• Country: US
• Employees: 45,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): -0.03
• Shares Outstanding: 140,306,440
• 10 Day Avg. Volume: 3,823,909
• 30 Day Avg. Volume: 3,589,644
• PEG Ratio: -0.18
• Price to Book (P/B): -0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.23
• Enterprise Value/Market Cap: 23.38
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $3.83
• Price Target Upside: 4.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 57 Neutral
• Price Target: $4.50 ▲( 22.62% Upside)

Community Health's overall stock score reflects financial challenges with negative net income and high leverage. Technical indicators suggest short-term bullish momentum, but valuation remains a concern. Earnings call insights and corporate events show positive strategic steps but ongoing operational challenges require addressing for long-term improvement.

Positive Factors

Asset Divestitures

CYH announced an agreement to sell 80% of its ownership interest in Cedar Park Regional Medical Center to Ascension Health for proceeds of $460MM, which is viewed as a positive deal as it was able to sell these assets at a solid valuation.

Financial Health

The divestitures will slightly reduce leverage, which is beneficial for the company's financial health.

Negative Factors

Legislative Risks

The overall risk/reward is seen as unfavorable due to legislative risks and potential for slowing fundamentals.

Medicaid Funding

Analyst perceives increased risk that new Medicaid funding will not be approved, reflecting a 50% probability of approval in their model.

Community Health Business Overview & Revenue Model

Company Description

Community Health Systems, Inc. (CYH) is a leading operator of general acute care hospitals in the United States. The company provides healthcare services through a network of hospitals and affiliated outpatient facilities and physicians. Focused on offering a comprehensive range of medical services, Community Health Systems operates in both urban and rural markets, aiming to deliver quality healthcare solutions to various communities across the nation.

How the Company Makes Money

Community Health Systems generates revenue primarily through the operation of its hospitals and associated healthcare facilities. The company's key revenue streams include patient services provided in inpatient and outpatient settings, which are reimbursed through government programs such as Medicare and Medicaid, as well as private health insurance companies. Additionally, CYH earns income from its network of employed physicians and ancillary services like laboratory testing, imaging, and rehabilitation. Strategic partnerships with local healthcare providers and continuous efforts to optimize operational efficiencies also contribute to the company's financial performance.

Community Health Financial Statement Overview

Summary

Community Health is experiencing financial challenges, particularly highlighted by its negative net income and equity. While revenue shows modest growth, profitability and leverage are areas of concern. The company needs to address its high debt levels and improve operational efficiency to return to profitability. Positive operating cash flows provide a foundation for improvement, but strategic financial restructuring is necessary to ensure long-term stability and growth.

Income Statement

The company's revenue has shown marginal growth over the years, with a TTM revenue of $12.654 billion. However, the net income has turned negative in recent years, resulting in a net loss. This is concerning as it indicates declining profitability, despite the gross profit margin of 37.08% and EBITDA margin of 8.32% in the TTM period. The EBIT margin stands at 4.78%, showing operational challenges. While revenue growth is a positive sign, the company's profitability metrics need improvement to enhance financial stability.

Balance Sheet

The balance sheet reveals significant financial distress, marked by negative stockholders' equity, which indicates insolvency. The debt-to-equity ratio is not calculable due to the negative equity, but the high total debt of $12.1 billion in the TTM period reflects leverage concerns. Return on equity is negative due to the net loss, and the equity ratio is also skewed by negative equity. Overall, the company's balance sheet highlights substantial financial risk with a need for restructuring.

Cash Flow

Operating cash flow has been positive, with a TTM figure of $504 million, indicating some level of cash generation. However, the free cash flow, although positive at $152 million, has seen fluctuations, with a notable improvement from previous negative periods. The free cash flow to net income ratio is not favorable due to the net loss, but the operating cash flow to net income ratio is positive, showing the company can generate cash despite net losses. Cash flow management needs to focus on consistent positive free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.65B	12.63B	12.49B	12.21B	12.37B	11.79B
	Gross Profit
4.69B	10.69B	5.08B	4.91B	5.08B	4.42B
	EBIT
605.00M	542.00M	957.00M	821.00M	1.40B	1.13B
	EBITDA
1.09B	1.07B	1.54B	1.74B	1.93B	2.02B
	Net Income Common Stockholders
-487.00M	-516.00M	-133.00M	179.00M	368.00M	511.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
431.00M	37.00M	38.00M	118.00M	507.00M	1.68B
	Total Assets
13.89B	14.05B	14.46B	14.67B	15.22B	16.01B
	Total Debt
11.98B	12.10B	12.17B	12.39B	12.82B	12.88B
	Net Debt
11.55B	12.06B	12.14B	12.27B	12.31B	11.21B
	Total Liabilities
15.22B	15.37B	15.28B	15.40B	16.03B	17.06B
	Stockholders Equity
-1.92B	-1.91B	-1.39B	-1.37B	-1.37B	-1.63B
Cash Flow		Free Cash Flow
152.00M	120.00M	-257.00M	-124.00M	-603.00M	1.74B
	Operating Cash Flow
504.00M	480.00M	210.00M	300.00M	-131.00M	2.18B
	Investing Cash Flow
267.00M	-275.00M	-26.00M	-259.00M	-524.00M	177.00M
	Financing Cash Flow
-388.00M	-206.00M	-264.00M	-430.00M	-514.00M	-895.00M

Community Health Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.67 is above the 20-day moving average (MA) of 3.47, above the 50-day MA of 2.96, and below the 200-day MA of 3.88, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 26.17 is Neutral, 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
HCSG	73 Outperform	$1.04B	25.37	8.37%	―	3.71%	1.32%
CYH	57 Neutral	$514.92M	―	39.18%	―	1.05%	-288.07%
AMN	53 Neutral	$795.17M	18.62	-21.08%	―	-18.13%	-215.78%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
INNV	52 Neutral	$530.60M	―	-12.03%	―	12.19%	-1.59%
EHAB	49 Neutral	$517.51M	―	-22.81%	―	-1.08%	-65.84%
CCRN	47 Neutral	$443.23M	―	-4.00%	―	-29.16%	-140.16%

Community Health Corporate Events

Community Health Stockholders Approve Key Proposals at Meeting

At the Annual Meeting on May 13, 2025, Community Health Systems, Inc. stockholders approved several key proposals, including the amendment and restatement of the 2009 Stock Option and Award Plan and a Certificate of Amendment for officer exculpation under Delaware law. The meeting also saw the election of directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent auditor for 2025, reflecting shareholder support for the company’s strategic and governance initiatives.

The most recent analyst rating on (CYH) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.

Community Health Completes $700M Senior Secured Notes Sale

On May 9, 2025, Community Health Systems, Inc. completed the sale and issuance of $700 million in 10.750% Senior Secured Notes due 2033, using the proceeds to redeem its outstanding 8.000% Senior Secured Notes due 2027. The company also amended the indenture governing its 6.875% Senior Unsecured Notes due 2028, removing several restrictive covenants and provisions, which could impact its financial flexibility and operations.

Community Health Announces Early Tender Results for Notes

On May 7, 2025, Community Health Systems, Inc. announced the early tender results of its cash tender offer for its 6.875% Senior Unsecured Notes due 2028. By the early tender deadline on May 6, 2025, approximately 93.32% of the outstanding notes were validly tendered and accepted for purchase, with payment expected on May 8, 2025. The company also received the necessary consent from note holders to adopt proposed amendments to the notes’ indenture, which will be enacted through a supplemental indenture on the early settlement date.

Community Health Reports Q1 2025 Financial Results

On April 23, 2025, Community Health Systems, Inc. reported its financial results for the first quarter ending March 31, 2025, showing net operating revenues of $3.159 billion and a reduced net loss of $13 million compared to the same period in 2024. The company experienced growth in same-store admissions and adjusted admissions, attributed to strong demand for services, and completed several divestitures to reduce debt. Despite challenges in the healthcare sector, the company remains optimistic about its strategic positioning for long-term success.