Community Health (CYH) AI Stock Analysis

• Market Cap: $413.35M
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 0.80%
• EPS Growth: -95.01%
• Country: US
• Employees: 45,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.05
• Shares Outstanding: 140,119,110
• 10 Day Avg. Volume: 1,441,957
• 30 Day Avg. Volume: 1,651,989
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 29.09
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 8.15
• 1Y Price Target: $3.64
• Price Target Upside: 18.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 53 Neutral
• Price Target: $3.00 ▼(-2.60% Downside)

Community Health's overall stock score is driven by mixed financial performance, with strong cash flow but high leverage and negative equity. Technical indicators show short-term strength, but valuation concerns persist due to negative earnings and lack of dividends. The earnings call provided a cautious outlook, reflecting challenges in patient volumes and EBITDA margins.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for services and effective pricing strategies, which can enhance long-term financial stability and market position.

Provider Recruitment and Expansion

Expanding the provider network and opening new access points can increase service capacity and market reach, supporting sustained growth and competitive advantage.

Debt Refinancing and Divestitures

Refinancing debt and strategic divestitures improve the leverage profile and financial flexibility, allowing for better capital allocation and risk management.

Negative Factors

High Leverage and Negative Equity

High leverage and negative equity indicate financial instability, which can limit the company's ability to invest in growth opportunities and weather economic downturns.

Declining EBITDA Margin

A declining EBITDA margin suggests increasing operational costs or pricing pressures, which could erode profitability and affect long-term financial health.

Volume Decline

Decreasing patient volumes and service utilization can impact revenue generation and signal potential challenges in maintaining market share and operational efficiency.

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 through a combination of government funding, private insurance reimbursements, and direct payments from patients. Key revenue streams include capitated payments from managed care organizations, which provide a fixed amount per patient for a defined set of services, and fee-for-service payments for specific medical procedures and consultations. Additionally, the organization engages in partnerships with local health departments and philanthropic organizations, enabling it to secure grants and funding aimed at enhancing community health initiatives. These partnerships not only bolster its financial stability but also expand its reach and impact within the communities it serves.

Community Health Financial Statement Overview

Summary

Community Health exhibits a mixed financial performance. Revenue growth is steady, but profitability remains a problem due to high expenses. The balance sheet is concerning with high leverage and negative equity, which could pose risks. However, the cash flow performance is relatively strong, suggesting operational resilience but highlighting potential liquidity concerns.

Income Statement

The company demonstrates moderate revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 1.0%. However, profitability is a concern with a negative net profit margin of -1.52% and declining EBIT margin of 6.87%. Despite a solid gross profit margin of 49.41%, the company is struggling to translate this into net profitability due to high operating expenses.

Balance Sheet

The balance sheet reveals significant financial instability with negative stockholders' equity of -$1.098 billion, indicating a high level of leverage. The debt-to-equity ratio is unfavorable, reflecting a dependence on debt financing. The equity ratio is negative, underscoring a balance sheet heavily weighted towards liabilities, posing risk during financial downturns.

Cash Flow

Cash flow analysis shows positive free cash flow growth, with a notable increase from the previous annual report. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to net income losses. However, the reliance on financing activities to manage cash flows could indicate potential liquidity issues.

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	6.25B	10.69B	5.08B	4.91B	5.08B	4.42B
EBITDA	1.48B	1.07B	1.54B	1.74B	1.93B	2.02B
Net Income	-192.00M	-516.00M	-133.00M	46.00M	230.00M	511.00M
Balance Sheet
Total Assets	13.64B	14.05B	14.46B	14.67B	15.22B	16.01B
Cash, Cash Equivalents and Short-Term Investments	456.00M	37.00M	38.00M	118.00M	507.00M	1.68B
Total Debt	649.00M	12.10B	12.17B	12.39B	12.82B	12.88B
Total Liabilities	14.74B	15.37B	15.28B	15.40B	16.03B	17.06B
Stockholders Equity	-1.10B	-1.91B	-1.39B	-1.37B	-1.37B	-1.63B
Cash Flow
Free Cash Flow	226.00M	120.00M	-257.00M	-124.00M	-603.00M	1.74B
Operating Cash Flow	490.00M	480.00M	210.00M	300.00M	-131.00M	2.18B
Investing Cash Flow	718.00M	-275.00M	-26.00M	-259.00M	-524.00M	177.00M
Financing Cash Flow	-792.00M	-206.00M	-264.00M	-430.00M	-514.00M	-895.00M

Community Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.08
• 50DMA: Positive
• 100DMA: Negative
• 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 Positive. The current price of 3.08 is above the 20-day moving average (MA) of 2.86, above the 50-day MA of 2.92, and below the 200-day MA of 3.13, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CYH.

Community Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCSG	68 Neutral	1.13B	113.00	2.27%	―	5.17%	-65.33%
INNV	59 Neutral	675.48M	-22.64	-12.90%	―	11.76%	-42.52%
AMN	54 Neutral	728.54M	-2.48	-49.02%	―	-14.33%	-398.68%
CYH	53 Neutral	$413.35M	―	39.18%	―	0.80%	-95.01%
EHAB	52 Neutral	391.33M	-3.03	-24.11%	―	-0.39%	-1408.40%
CCRN	49 Neutral	429.84M	-52.76	-2.02%	―	-24.30%	-210.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Community Health Corporate Events

Community Health Appoints Interim CEO and CFO

On September 10, 2025, Community Health Systems, Inc. announced the appointment of Kevin J. Hammons as Interim Chief Executive Officer, effective October 1, 2025, following the retirement of Tim L. Hingtgen. Concurrently, Jason K. Johnson was appointed as Interim Chief Financial Officer, replacing Hammons. These leadership changes, previously announced in July 2025, are accompanied by revised compensation arrangements for both executives, including increased base salaries and enhanced cash incentive opportunities tied to company performance goals for the remainder of 2025.

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 Completes $1.79 Billion Notes Offering

On August 12, 2025, Community Health Systems, Inc. completed its offering of $1.79 billion in 9.750% Senior Secured Notes due 2034, which are guaranteed by the company and its subsidiaries. The proceeds from this offering, along with cash on hand, were used to repurchase a significant portion of its outstanding 5.625% Senior Secured Notes due 2027, with plans to refinance the remaining balance. This strategic financial maneuver aims to optimize the company’s debt structure and improve its financial flexibility.

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 Prices $1.79 Billion Senior Notes

On July 28, 2025, Community Health Systems, Inc. announced that its subsidiary priced an offering of $1,790 million in Senior Secured Notes due 2034, an increase from the initially proposed $1,500 million. The proceeds will be used to refinance existing notes due in 2027. Additionally, the company launched a cash tender offer for its 2027 Notes, increasing the offer size by $287 million. This financial maneuver aims to strengthen the company’s financial position by managing its debt obligations more effectively.

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.