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Community Health
(NYSE:CYH)
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Rating:41Neutral
Price Target:
$2.50
▼(-14.38% Downside)
Action:Reiterated
Date:10/29/26
CYH scores low primarily due to weak financial resilience (negative equity, high leverage, and inconsistent profitability/FCF). Technical indicators reinforce the downside bias with the stock below major moving averages and negative momentum. The earnings call adds further caution via reduced EBITDA guidance and payer-mix/cash-collection pressures, while valuation metrics provide limited support given a negative P/E and no dividend yield data.
Positive Factors
Same-store volume growth
Positive same-store revenue and admission growth indicates underlying demand is improving within the continuing hospital portfolio, despite reported declines affected by divestitures. Sustained volume gains can support better fixed-cost absorption and strengthen operating performance over the next several quarters.
Negative Factors
Stressed balance sheet
Persistent negative equity and substantial debt materially reduce financial flexibility. This capital structure leaves less room to absorb operating volatility, fund needed investments, or respond flexibly to reimbursement and demand pressures while maintaining elevated financial risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Same-store volume growth
Positive same-store revenue and admission growth indicates underlying demand is improving within the continuing hospital portfolio, despite reported declines affected by divestitures. Sustained volume gains can support better fixed-cost absorption and strengthen operating performance over the next several quarters.
Read all positive factors
Community Health Key Performance Indicators (KPIs)
Any
Revenue by Source
Breaks down where the company earns money—Medicare, Medicaid, commercial insurers, self-pay, and services like outpatient or ancillary care. A heavy reliance on lower-paying government programs or one dominant payer raises reimbursement and policy risk, while a diversified mix with higher-margin services supports revenue stability and profit potential.
Breaks down where the company earns money—Medicare, Medicaid, commercial insurers, self-pay, and services like outpatient or ancillary care. A heavy reliance on lower-paying government programs or one dominant payer raises reimbursement and policy risk, while a diversified mix with higher-margin services supports revenue stability and profit potential.
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The Fly
The FlyCommunity Health (CYH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$375.08M
Dividend Yield0.7%
Average Volume (3M)1.15M
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth-5.25%
EPS GrowthN/A
CountryUS
Employees50,500
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-3.86
Shares Outstanding141,009,350
10 Day Avg. Volume1,095,341
30 Day Avg. Volume1,147,516
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.30
Price to Sales (P/S)0.03
P/FCF Ratio2.01
Enterprise Value/Market Cap29.32
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit0.92
Enterprise Value/Ebitda2.44
Forecast
1Y Price Target
$3.50Price Target Upside19.86% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-1.13
Revenue Forecast (FY)$11.45B
Community Health Business Overview & Revenue Model
Company Description
Community Health Systems, Inc. (CYH) operates as a major healthcare provider across the United States, focusing on the ownership, leasing, and management of general acute care hospitals. The organization offers a comprehensive array of medical ser...
How the Company Makes Money
CYH primarily makes money by providing healthcare services and receiving reimbursement from third-party payors and patients. The largest revenue stream is net patient service revenue generated when its hospitals and related facilities deliver inpa...
Community Health Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Negative
The call reflected meaningful operational and clinical progress (quality recognitions, improved employee engagement, same-store volume gains, cost controls, procurement improvements, and beneficial state-directed payment recognition). However, these positives were outweighed by material financial headwinds: a 9.8% decline in net revenue, lower Adjusted EBITDA ($330M vs $380M), softness in elective surgeries and unfavorable payer mix with rising uninsured/self-pay volumes, pre-payment audit-driven AR/cash timing pressure, and a reduction in full-year Adjusted EBITDA guidance. Management has taken balance-sheet actions and sees improving exit trends, but near-term demand and payer-mix challenges drove a cautious outlook.Positive Updates
Quality and Clinical Improvements
Notable progress on quality metrics: 12 hospitals achieved Leapfrog A grades and ~70% of hospitals achieved Leapfrog A or B; Lutheran Hospital received the American College of Cardiology HeartCARE Distinction (one of ~100 nationally); multiple hospitals recognized by CMS for zero hospital-acquired infections; record achievements in risk-adjusted mortality index, sepsis mortality, and HAI rates; improvements in patient experience, physician experience, and employee engagement (record employee survey response rates).
Negative Updates
Significant Year-over-Year Revenue and EBITDA Declines
Net revenue declined 9.8% year-over-year; Adjusted EBITDA fell to $330 million from $380 million (a decline of ~$50M) and margin declined to 11.7% from 12.1% in the prior year period.
Read all updates
Q2-2026 Updates
Positive
Negative
Quality and Clinical Improvements
Notable progress on quality metrics: 12 hospitals achieved Leapfrog A grades and ~70% of hospitals achieved Leapfrog A or B; Lutheran Hospital received the American College of Cardiology HeartCARE Distinction (one of ~100 nationally); multiple hospitals recognized by CMS for zero hospital-acquired infections; record achievements in risk-adjusted mortality index, sepsis mortality, and HAI rates; improvements in patient experience, physician experience, and employee engagement (record employee survey response rates).
Read all positive updates
Company Guidance
Management updated 2026 guidance to net revenue of $11.4–$11.6 billion and Adjusted EBITDA of $1.30–$1.375 billion (down from an initial midpoint of $1.415 billion after a ~$60–$70 million reduction tied to H1 results and similar assumed H2 weakness); Q2 Adjusted EBITDA was $330 million (11.7% margin vs 12.1% prior year) on a reported 9.8% decline in net revenue while same‑store net revenue rose 2.4%, same‑store adjusted admissions increased 2.9% (inpatient +1.9%), and same‑store net revenue per adjusted admission fell 0.5%. The company attributes the revision to exchange disenrollment/self‑pay pressure (initially modeled as $90–$110 million net revenue and $20–$30 million EBITDA impact; Q1 ~ $25M and Q2 ~ $20M EBITDA hits, now implying roughly $50–$75M of annual EBITDA headwind), partially offset by $40–$45 million of combined Q2 EBITDA from approved Florida and Indiana state‑directed payment programs (about $20–$25M of which related to prior periods and partly offset by an approximate $15M reduction in Arizona). Cash from operations was $87M in Q2 ($143M adjusted for divestiture tax timing), the company repurchased ~$368M of 4.75% 2031 notes and ~$231M of 10.875% 2032 notes, ended the quarter at 6.7x leverage (6.6x YE2025) with no ABL drawn, and expects DPP benefits from Georgia, Indiana and potentially Florida to affect full‑year results.Community Health Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.08B | 12.48B | 12.63B | 12.49B | 12.21B | 12.37B |
| Gross Profit | 11.93B | 1.08B | 5.27B | 5.08B | 4.91B | 5.08B |
| EBITDA | 4.51B | 2.02B | 1.33B | 1.38B | 1.25B | 1.82B |
| Net Income | -516.00M | 509.00M | -516.00M | -133.00M | 46.00M | 230.00M |
Balance Sheet | ||||||
| Total Assets | 12.11B | 13.20B | 14.05B | 14.46B | 14.67B | 15.22B |
| Cash, Cash Equivalents and Short-Term Investments | 155.00M | 260.00M | 37.00M | 38.00M | 118.00M | 507.00M |
| Total Debt | 641.00M | 11.58B | 12.10B | 12.17B | 12.39B | 12.82B |
| Total Liabilities | 13.04B | 14.04B | 15.37B | 15.28B | 15.40B | 16.03B |
| Stockholders Equity | -937.00M | -1.39B | -1.91B | -1.39B | -1.37B | -1.37B |
Cash Flow | ||||||
| Free Cash Flow | -34.00M | 208.00M | 120.00M | -257.00M | -115.00M | -600.00M |
| Operating Cash Flow | 212.00M | 543.00M | 480.00M | 210.00M | 300.00M | -131.00M |
| Investing Cash Flow | 1.14B | 847.00M | -277.00M | -22.00M | -251.00M | -543.00M |
| Financing Cash Flow | -1.17B | -1.17B | -204.00M | -268.00M | -438.00M | -495.00M |
Community Health Technical Analysis
Negative
2.92
Price Trends
2.89
Negative
3.01
Negative
3.04
Negative
Market Momentum
-0.02
Positive
38.10
Neutral
33.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYH, the sentiment is Negative. The current price of 2.92 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.89, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 33.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYH.
Community Health Risk Analysis
Community Health disclosed 37 risk factors in its most recent earnings report. Community Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Community Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.32B | 23.45 | 12.94% | 1.24% | 7.19% | 32.91% | |
82 Outperform | $2.28B | 21.51 | 9.57% | ― | 15.88% | 25.01% | |
75 Outperform | $12.04B | 18.81 | 23.31% | 0.64% | 9.47% | 19.85% | |
70 Outperform | $2.85B | 9.84 | 150.20% | ― | 19.52% | 1337.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $375.08M | -0.69 | 39.88% | 0.70% | -5.25% | ― |
* Healthcare Sector Average
CYH
Community Health
2.66
-1.55
-36.82%
ADUS
Addus Homecare
122.18
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-0.46%
EHC
Encompass Health
122.09
-2.62
-2.10%
NHC
National Healthcare
211.79
92.72
77.87%
AVAH
Aveanna Healthcare Holdings
13.06
3.20
32.45%
Community Health Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Community Health Systems Reports Third-Quarter Loss, Portfolio Shifts
Negative
Oct 28, 2026
Community Health Systems, Inc. is a U.S. hospital operator that owns and manages acute care facilities and related healthcare services, with a focus on same-store performance across its portfolio. The company has been actively reshaping its footpr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.