Community Healthcare (CHCT) AI Stock Analysis

• Market Cap: $426.07M
• Dividend Yield: 12.48%
• Average Volume (3M): 189.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 2.96%
• EPS Growth: -877.53%
• Country: US
• Employees: 36
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.50
• Shares Outstanding: 28,366,743
• 10 Day Avg. Volume: 185,538
• 30 Day Avg. Volume: 189,191
• 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: 2.22
• Enterprise Value/Revenue: 7.95
• Enterprise Value/Gross Profit: 11.13
• Enterprise Value/Ebitda: 15.41
• 1Y Price Target: $19.50
• Price Target Upside: 29.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: $15.00 ▼(-0.13% Downside)

Community Healthcare's overall stock score reflects a mix of strengths and challenges. The high dividend yield and strategic acquisitions are positive, but profitability issues and tenant challenges weigh heavily. The technical indicators suggest a bearish trend, and the financial performance indicates operational inefficiencies that need addressing.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective service delivery, supporting long-term financial sustainability.

Strategic Acquisitions

The acquisition of high-return facilities enhances asset base and income potential, strengthening long-term competitive positioning.

Dividend Growth

Consistent dividend increases reflect strong cash flow management and commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Profitability Concerns

Negative net income despite revenue growth indicates operational inefficiencies, which could hinder long-term financial health if not addressed.

Tenant Issues

Tenant payment issues can lead to revenue instability and increased credit risk, potentially impacting cash flows and financial stability.

Increased Leverage

Higher leverage increases financial risk, potentially limiting flexibility in capital allocation and increasing vulnerability to economic downturns.

Community Healthcare Business Overview & Revenue Model

Company Description

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.

How the Company Makes Money

Community Healthcare generates revenue primarily through a multi-faceted approach that includes reimbursement from government programs, such as Medicare and Medicaid, for the services rendered to eligible patients. A significant portion of the company's earnings also comes from private insurance reimbursements, which are negotiated to ensure fair compensation for the services provided. Additionally, CHCT may receive funding through grants and partnerships with nonprofit organizations, which help support specific health initiatives and programs. The company also engages in community outreach programs that may attract donations or sponsorships, further enhancing its revenue streams. By focusing on a diverse range of funding sources, CHCT ensures financial sustainability while fulfilling its mission to serve the community.

Community Healthcare Financial Statement Overview

Summary

Community Healthcare is experiencing growth in revenue and free cash flow, but profitability remains a concern with negative net income. The increase in leverage could be risky if not managed carefully. While cash flow generation is improving, the company needs to address operational inefficiencies to enhance profitability.

Income Statement

Community Healthcare has shown modest revenue growth with a 2.24% increase in TTM. However, the company is struggling with profitability, as indicated by a negative net profit margin of -6.20% in TTM. The gross profit margin remains strong at 71.40%, but the decline in EBIT and EBITDA margins over time suggests operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.16 in TTM, indicating higher leverage, which could pose risks if not managed properly. The return on equity is negative, reflecting recent net losses. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Community Healthcare's free cash flow has grown by 7.1% in TTM, which is a positive sign. The operating cash flow to net income ratio is low at 0.23, indicating potential cash flow challenges relative to earnings. The free cash flow to net income ratio is relatively healthy at 0.63, suggesting decent cash generation despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.14M	115.79M	112.84M	97.68M	90.58M	75.68M
Gross Profit	85.06M	92.95M	92.13M	81.04M	75.42M	62.07M
EBITDA	61.45M	74.82M	64.79M	67.13M	64.43M	53.29M
Net Income	-7.38M	-3.18M	7.71M	22.02M	22.49M	19.08M
Balance Sheet
Total Assets	966.29M	992.56M	945.41M	876.42M	754.23M	668.40M
Cash, Cash Equivalents and Short-Term Investments	4.86M	4.38M	3.49M	11.23M	2.35M	2.48M
Total Debt	509.05M	489.98M	407.31M	357.06M	274.72M	213.17M
Total Liabilities	528.47M	516.60M	432.16M	379.61M	292.12M	238.49M
Stockholders Equity	437.82M	475.96M	513.26M	496.81M	462.11M	429.92M
Cash Flow
Free Cash Flow	36.46M	34.24M	42.40M	49.90M	49.13M	41.38M
Operating Cash Flow	57.72M	58.88M	61.38M	60.28M	56.35M	48.37M
Investing Cash Flow	-36.90M	-92.66M	-113.67M	-113.77M	-104.43M	-125.06M
Financing Cash Flow	-16.69M	33.53M	44.86M	62.69M	48.05M	77.56M

Community Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCT, the sentiment is Negative. The current price of 15.02 is below the 20-day moving average (MA) of 15.30, below the 50-day MA of 15.15, and below the 200-day MA of 16.31, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHCT.

Community Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRW	73 Outperform	$154.35M	19.75	51.91%	4.88%	24.72%	30.05%
SILA	71 Outperform	$1.34B	34.37	2.71%	6.56%	0.43%	58.57%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UHT	63 Neutral	$533.88M	29.73	10.08%	7.67%	0.14%	-0.76%
GMRE	60 Neutral	$632.05M	97.38	1.94%	8.42%	0.90%	―
DHC	59 Neutral	$1.06B	―	-14.32%	0.91%	4.29%	18.89%
CHCT	52 Neutral	$426.07M	―	-2.22%	12.48%	2.96%	-877.53%