Community Health Systems, Inc. (CYH)
Valuation Overview•Is Community Health Systems, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 36/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral with steady expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
CYH struggles with subpar profitability and pressured margins. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth paired with highly explosive earnings growth (120.8% EPS 3Y CAGR). However, profitability remains a major concern with severely compressed operating margins (-39.8%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $12.2B | -1.2% | +0.7% | +1.2% | -4.3% | |
| EBITDA | $2.1B | — | — | — | — | |
| Net Income | -$610.0M | +198.6% | +122.8% | — | +12.4% | |
| EPS (Diluted) | $-4.52 | +196.7% | +120.8% | -3.0% | +10.7% | |
| Free Cash Flow | -$373.0M | +73.3% | — | -34.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 53.7% | 30.4% | 34.5% | 35.8% |
| Operating Margin | -39.8% | -22.5% | -9.9% | -5.0% |
| Net Margin | -0.4% | -0.4% | 0.2% | -3.0% |
| FCF Margin | -0.9% | 0.2% | -1.0% | 1.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.11 | $-0.48 | -323.1% | ||
| Q1'26 | $-0.20 | $-0.01 | +95.1% | ||
| Q4'25 | $-0.28 | $1.27 | +557.4% | ||
| Q3'25 | $0.05 | $-0.05 | -200.0% | ||
| Q2'25 | $-0.10 | $-0.03 | +70.0% | ||
| Q1'25 | $0.09 | $-0.42 | -566.7% | ||
| Q4'24 | $-0.16 | $-0.30 | -87.5% | ||
| Q3'24 | $-0.11 | $-0.17 | -54.5% |
Total return is -8.8% (1Y), lagging the benchmark by -33.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -2.6% | -11.9% | — |
| 1Y | -8.8% | -33.8% | — |
| 3YCAGR | -10.1% | -29.9% | — |
| 5YCAGR | -27.2% | -40.4% | — |
| 10YCAGR | -13.7% | -27.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Community Health Systems, Inc. (CYH) valuation, health, and returns.
Based on peer relative multiples, Community Health Systems, Inc. appears Cheap versus peers compared to industry peers.
Community Health Systems, Inc. has multiple valuation anchors: Peer Relative Fair Value: $28.41 | Wall Street Analyst Target: $2.93 (implying -3.0% upside). A convergence of these signals offers higher conviction.
Community Health Systems, Inc. displays weak financial health with a composite quality score of 36/100, supported by a Altman Z-Score of -2.2 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of -70.1%.
Community Health Systems, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Community Health Systems, Inc.'s current growth trajectory is Stable. The company achieved -1.2% 1Y revenue growth and +196.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +0.7%.
Wall Street consensus is Hold based on 37 analysts, beating EPS expectations in 42% of recent quarters with a -1-quarter streak. The consensus price target represents a -3.0% change from current levels.
Investment risks for Community Health Systems, Inc. include: -43.5% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.30x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.