📊 CYH Key Takeaways
Is Community Health Systems Inc. (CYH) a Good Investment?
Community Health Systems exhibits deteriorating fundamental health with declining profitability (-24.7% YoY net income), negative stockholders' equity of -$1.4B, and high financial leverage (10.4B long-term debt). While operating margins remain modest at 11.9% and free cash flow generation provides some defensive qualities, the inverted balance sheet and weak interest coverage (2.0x) signal significant financial distress and limited margin for operational challenges.
Community Health Systems shows durable operating profitability, but the fundamental profile remains constrained by declining revenue, falling net income, very high leverage, and negative equity. While the business is still generating positive operating cash flow and free cash flow, coverage and balance-sheet flexibility look weak for a hospital operator facing execution and financing risk.
Why Buy Community Health Systems Inc. Stock? CYH Key Strengths
- Positive operating cash flow of $543M demonstrates ongoing operational capacity
- Free cash flow generation of $208M provides liquidity cushion despite profitability pressure
- Adequate current ratio of 1.46x indicates short-term liquidity sufficiency
- Operating margin of 11.9% remains stable despite revenue headwinds
- Positive operating income with an 11.9% operating margin indicates the core hospital portfolio is still producing earnings
- Operating cash flow of $543.00M and free cash flow of $208.00M show the business remains cash generative after capital spending
- Diluted EPS improved sharply year over year, suggesting some earnings-per-share support despite weaker net income
CYH Stock Risks: Community Health Systems Inc. Investment Risks
- Negative stockholders' equity of -$1.4B indicates technical insolvency and balance sheet distress
- Net income declined 24.7% YoY while revenue contracted 1.2%, signaling operational margin compression
- High debt burden of $10.4B with weak interest coverage of only 2.0x creates refinancing risk
- Low net margin of 4.1% and FCF margin of 1.7% provide minimal error tolerance in healthcare operations
- Negative equity eliminates traditional leverage capacity and increases bankruptcy risk in economic downturns
- Revenue declined 1.2% year over year and net income fell 24.7%, pointing to weakening earnings quality
- Long-term debt of $10.40B, negative stockholders equity of $-1.39B, and only 2.0x interest coverage indicate substantial balance-sheet stress
- Free cash flow margin of just 1.7% leaves limited room for operational setbacks, reimbursement pressure, or higher financing costs
Key Metrics to Watch
- Operating margin trends and ability to stabilize amid healthcare reimbursement pressures
- Debt reduction progress and refinancing ability given negative equity position
- Free cash flow sustainability and cash conversion quality
- Patient volume trends and revenue per admission growth
- Interest coverage and total debt reduction progress
- Revenue growth and free cash flow margin sustainability
Community Health Systems Inc. (CYH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.7% FCF margin may limit capital allocation flexibility.
CYH Profit Margin, ROE & Profitability Analysis
CYH vs Healthcare Sector: How Community Health Systems Inc. Compares
How Community Health Systems Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Community Health Systems Inc. Stock Overvalued? CYH Valuation Analysis 2026
Based on fundamental analysis, Community Health Systems Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Community Health Systems Inc. Balance Sheet: CYH Debt, Cash & Liquidity
CYH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Community Health Systems Inc.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $-1.02 indicates the company is currently unprofitable.
CYH Revenue Growth, EPS Growth & YoY Performance
CYH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.1B | $130.0M | $0.96 |
| Q2 2025 | $3.1B | -$13.0M | $-0.10 |
| Q1 2025 | $3.1B | -$13.0M | $-0.10 |
| Q3 2024 | $3.1B | -$91.0M | $-0.69 |
| Q2 2024 | $3.1B | -$13.0M | $-0.10 |
| Q1 2024 | $3.1B | -$41.0M | $-0.32 |
| Q3 2023 | $3.0B | -$42.0M | $-0.32 |
| Q2 2023 | $2.9B | -$38.0M | $-0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Community Health Systems Inc. Dividends, Buybacks & Capital Allocation
CYH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Community Health Systems Inc. (CIK: 0001108109)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CYH
What is the AI rating for CYH?
Community Health Systems Inc. (CYH) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CYH's key strengths?
Claude: Positive operating cash flow of $543M demonstrates ongoing operational capacity. Free cash flow generation of $208M provides liquidity cushion despite profitability pressure. ChatGPT: Positive operating income with an 11.9% operating margin indicates the core hospital portfolio is still producing earnings. Operating cash flow of $543.00M and free cash flow of $208.00M show the business remains cash generative after capital spending.
What are the risks of investing in CYH?
Claude: Negative stockholders' equity of -$1.4B indicates technical insolvency and balance sheet distress. Net income declined 24.7% YoY while revenue contracted 1.2%, signaling operational margin compression. ChatGPT: Revenue declined 1.2% year over year and net income fell 24.7%, pointing to weakening earnings quality. Long-term debt of $10.40B, negative stockholders equity of $-1.39B, and only 2.0x interest coverage indicate substantial balance-sheet stress.
What is CYH's revenue and growth?
Community Health Systems Inc. reported revenue of $12.5B.
Does CYH pay dividends?
Community Health Systems Inc. pays dividends, with $22.5M distributed to shareholders in the trailing twelve months.
Where can I find CYH SEC filings?
Official SEC filings for Community Health Systems Inc. (CIK: 0001108109) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CYH's EPS?
Community Health Systems Inc. has a diluted EPS of $3.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CYH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Community Health Systems Inc. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CYH stock overvalued or undervalued?
Valuation metrics for CYH: ROE of N/A (sector avg: 15%), net margin of 4.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CYH stock in 2026?
Our dual AI analysis gives Community Health Systems Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CYH's free cash flow?
Community Health Systems Inc.'s operating cash flow is $543.0M, with capital expenditures of $335.0M. FCF margin is 1.7%.
How does CYH compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 4.1% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.46 (avg: 2).