Community Health (CYH) AI Stock Analysis

• Market Cap: $381.12M
• Dividend Yield: N/A
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: 0.80%
• EPS Growth: -95.01%
• Country: US
• Employees: 45,000
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Care Facilities
• EPS (TTM): -0.05
• Shares Outstanding: 140,119,110
• 10 Day Avg. Volume: 1,728,177
• 30 Day Avg. Volume: 3,437,252
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 31.55
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 8.15
• 1Y Price Target: $3.64
• Price Target Upside: 30.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 51 Neutral
• Price Target: $2.50 ▼(-10.39% Downside)

Community Health's overall stock score reflects a challenging financial position with high leverage and negative equity, offset by strong cash flow performance. The technical indicators suggest a bearish trend, while valuation metrics highlight unprofitability. Positive corporate events and strategic initiatives provide some optimism, but the cautious outlook from the earnings call tempers expectations.

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.

Balance Sheet Improvement

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

Negative Factors

CEO Transition

The CEO transition adds uncertainty at a time when the hospital industry is facing new regulatory challenges.

EBITDA and Financial Performance

The company's Q2 trends resulted in an EBITDA miss, contributing to a less favorable outlook.

Regulatory and Legislative Risks

There is uncertainty in future earnings due to legislative impacts and scheduled subsidy expirations, which may increase the company's leverage ratio.

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 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 positive operating cash flows provide a foundation for improvement, but strategic financial restructuring is necessary.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.63B	12.49B	12.21B	12.37B	11.79B
Gross Profit	10.69B	5.08B	4.91B	5.08B	4.42B
EBITDA	1.07B	1.54B	1.74B	1.93B	2.02B
Net Income	-516.00M	-133.00M	46.00M	230.00M	511.00M
Balance Sheet
Total Assets	14.05B	14.46B	14.67B	15.22B	16.01B
Cash, Cash Equivalents and Short-Term Investments	37.00M	38.00M	118.00M	507.00M	1.68B
Total Debt	12.10B	12.17B	12.39B	12.82B	12.88B
Total Liabilities	15.37B	15.28B	15.40B	16.03B	17.06B
Stockholders Equity	-1.91B	-1.39B	-1.37B	-1.37B	-1.63B
Cash Flow
Free Cash Flow	120.00M	-257.00M	-124.00M	-603.00M	1.74B
Operating Cash Flow	480.00M	210.00M	300.00M	-131.00M	2.18B
Investing Cash Flow	-275.00M	-26.00M	-259.00M	-524.00M	177.00M
Financing Cash Flow	-206.00M	-264.00M	-430.00M	-514.00M	-895.00M

Community Health Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.79
• 50DMA: Negative
• 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 Neutral. The current price of 2.79 is above the 20-day moving average (MA) of 2.62, below the 50-day MA of 3.07, and below the 200-day MA of 3.20, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 60.58 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	68 Neutral	$1.12B	109.33	2.28%	―	5.17%	-65.33%
AMN	56 Neutral	$779.90M	18.62	-40.13%	―	-14.33%	-398.68%
EHAB	53 Neutral	$402.48M	―	-21.72%	―	-0.39%	-1408.40%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
CYH	51 Neutral	$381.12M	―	39.18%	―	0.80%	-95.01%
INNV	47 Neutral	$523.85M	―	-12.03%	―	12.19%	-1.59%
CCRN	45 Neutral	$433.44M	―	-1.96%	―	-24.30%	-210.27%

Community Health Corporate Events

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.

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.

Community Health Reports Strong Q2 2025 Financial Results

Community Health Systems, Inc. reported its financial results for the second quarter ending June 30, 2025, showing a significant turnaround with a net income of $282 million compared to a net loss in the same period of 2024. The company completed significant financial transactions, including the offering of $700 million in senior secured notes and the redemption of existing notes, which resulted in a net pre-tax gain from early debt extinguishment. Additionally, the company divested several hospital interests and entered into an agreement with Labcorp to sell select assets of its ambulatory outreach laboratory services for $195 million. These actions reflect the company’s strategic initiatives to strengthen its financial position and focus on core operations.

Community Health Announces CEO Retirement and Leadership Changes

On July 23, 2025, Community Health Systems announced the retirement of Tim L. Hingtgen as CEO and board member, effective September 30, 2025. Hingtgen’s departure is amicable, and he will continue to advise the company as a consultant. Kevin J. Hammons, currently President and CFO, will become Interim CEO, and Jason K. Johnson will step in as Interim CFO. These leadership changes are expected to ensure a seamless transition and continued focus on enhancing patient care and company performance.

Community Health Sells Lab Assets to Labcorp

On July 22, 2025, Community Health Systems, Inc. announced a definitive agreement to sell select assets of its ambulatory outreach laboratory services to Labcorp for $195 million. This transaction, expected to close in the fourth quarter of 2025, aims to enhance patient and provider access to Labcorp’s comprehensive testing services while allowing CHS to focus on its core healthcare services. The agreement includes a non-competition clause and plans for a smooth transition to maintain service continuity.

Community Health Sells Cedar Park Stake for $436M

On June 30, 2025, Community Health Systems, Inc. completed the sale of its 80% ownership interest in the Cedar Park Health System joint venture to Ascension Health for $436 million in cash. This transaction, which was initially agreed upon in April 2025, marks a significant disposition for CHS, potentially impacting its financial structure and market positioning.