Community Health (CYH) AI Stock Analysis

• Market Cap: $572.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 1.7
• Beta (1Y): 1.70
• 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: 21.02
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 8.59
• 1Y Price Target: $3.93
• Price Target Upside: -4.84% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $5.00 ▲(21.07% Upside)

Community Health's stock score is primarily driven by its strong technical indicators and attractive valuation, suggesting potential upside. However, financial performance concerns, particularly high leverage and negative equity, pose significant risks. The positive sentiment from the earnings call is encouraging but not factored into the score due to its exclusion from the weighted calculation.

Positive Factors

Revenue Growth

The 6% year-over-year growth in same-store net revenue indicates strong operational performance and effective pricing strategies, which can drive long-term revenue stability and growth.

Leverage Reduction

Reducing leverage enhances financial stability and reduces risk, providing the company with greater flexibility to invest in growth opportunities and manage economic uncertainties.

Physician Recruitment

Expanding the workforce of physicians and advanced practice providers strengthens service capacity and supports long-term growth by meeting increasing healthcare demands.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, limiting the company's ability to withstand economic downturns and potentially impacting future investment capabilities.

Declining Revenue Growth

A decline in revenue growth can signal challenges in maintaining market share and competitiveness, potentially affecting long-term profitability and strategic positioning.

Inflationary Pressures

Inflationary pressures on costs can erode profit margins and increase operational expenses, challenging the company's ability to sustain profitability over time.

Community Health Business Overview & Revenue Model

Company Description

Community Health (CYH) is a leading provider of integrated healthcare services focused on delivering quality care to underserved populations. Operating primarily in the health services sector, CYH offers a range of products and services, including primary care, behavioral health, and preventive health services, with an emphasis on community engagement and accessibility. The organization aims to improve health outcomes through innovative care models and partnerships with local organizations.

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 faces a challenging financial landscape with mixed performance across its financial statements. While there are strengths in profitability margins and recent cash flow improvements, the company struggles with high leverage and negative equity, posing significant financial risks. The negative revenue growth trend further complicates the outlook, necessitating careful management and strategic adjustments to improve financial stability.

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: Positive
• Last Price: 4.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 4.13 is above the 20-day moving average (MA) of 3.37, above the 50-day MA of 3.12, and above the 200-day MA of 3.14, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 70.21 is Negative, neither overbought nor oversold. The STOCH value of 80.04 is Negative, 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	―	$1.29B	33.88	8.07%	―	6.26%	-19.33%
CYH	―	$572.09M	1.70	―	―	0.74%	―
AMN	―	$743.87M	―	-40.13%	―	-14.33%	-398.68%
EHAB	―	$414.65M	―	-21.72%	―	-0.39%	-1408.40%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INNV	―	$714.81M	-23.54	-12.02%	―	11.76%	-42.52%
CCRN	―	$396.40M	-46.74	-1.96%	―	-24.30%	-210.27%

Community Health Corporate Events

Community Health Systems Reports Mixed Q3 Earnings

Community Health Systems (CHS) recently held its third-quarter earnings call, which revealed a mix of positive developments and ongoing challenges. The company reported revenue growth and a reduction in leverage, alongside an increase in employed physicians. However, it also faced challenges in outpatient surgeries, emergency department visits, and inflationary pressures. Despite these hurdles, CHS remains optimistic about achieving positive cash flow and continued growth.

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.

The most recent analyst rating on (CYH) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.

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.

The most recent analyst rating on (CYH) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Community Health stock, see the CYH Stock Forecast page.

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.