Loading...
Back to narrative

CYH: Leadership Transitions And Margin Outlook Will Shape A Cautious Earnings Path

Rural Decline And Deteriorating Payer Mix Will Erode Profitability

CYH logo
CYH
AnalystLowTarget
Not Invested
Published 05 Sep 2025

Update shared on 12 Dec 2025

Fair value Increased 20%
n/a
n/a
AnalystLowTarget's Fair Value
n/a
Loading
1Y
-4.9%
7D
-9.6%

Analysts have raised their price target for Community Health Systems by 0.5, citing a modestly higher fair value estimate of 3.0, a slightly increased discount rate, and expectations for improved profit margins despite reduced revenue growth assumptions.

What's in the News

  • Board appoints Jason Johnson as permanent chief financial officer, effective December 10, 2025, following his interim tenure since October 1, 2025 (Key Developments)
  • Jason Johnson, age 51, moves up from chief accounting officer, where he oversaw SEC reporting and broader accounting and financial reporting functions (Key Developments)
  • Board names Kevin Hammons as chief executive officer, effective December 10, 2025, after serving as interim CEO since October 1, 2025 (Key Developments)
  • Kevin Hammons, age 60, transitions from his prior role as CFO, bringing deep experience in accounting, capital markets, treasury management, and leading the company’s recent ERP implementation (Key Developments)
  • Company updates 2025 guidance, with projected net operating revenues of 12,400 million to 12,600 million dollars and diluted EPS of 0.80 to 0.90 (Key Developments)

Valuation Changes

  • The fair value estimate has risen from 2.5 to 3.0, reflecting a modest upward revision in the company’s intrinsic value assessment.
  • The discount rate has increased slightly from 12.32 percent to 12.50 percent, implying a marginally higher required return for investors.
  • The revenue growth outlook has shifted significantly from a projected 1.36 percent increase to a 1.04 percent decline, indicating a more cautious view on top line expansion.
  • The net profit margin expectation has edged up from 5.27 percent to approximately 5.45 percent, signaling modestly improved profitability assumptions.
  • The future P/E multiple has moved higher from roughly 0.70x to 0.84x, suggesting a slightly richer valuation on expected earnings.

Have other thoughts on Community Health Systems?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.