NYSE:CYH

Stock Analysis Report

Community Health Systems

Executive Summary

Community Health Systems, Inc., together with its subsidiaries, owns, leases, and operates general acute care hospitals in the United States.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Community Health Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.7%

CYH

5.8%

US Healthcare

1.8%

US Market


1 Year Return

46.6%

CYH

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: CYH exceeded the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: CYH exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

CYHIndustryMarket
7 Day9.7%5.8%1.8%
30 Day19.1%2.5%-0.7%
90 Day96.8%-1.8%0.06%
1 Year46.6%46.6%-5.0%-6.5%9.7%7.3%
3 Year-58.8%-58.8%33.9%28.6%46.3%36.9%
5 Year-90.8%-92.4%65.6%55.8%64.5%46.5%

Price Volatility Vs. Market

How volatile is Community Health Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Community Health Systems undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Community Health Systems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Community Health Systems has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of CYH’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Community Health Systems regulatory filings.
  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

How is Community Health Systems forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

62.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CYH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CYH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CYH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CYH's revenue (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CYH's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if CYH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Community Health Systems performed over the past 5 years?

-43.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CYH is unprofitable, and losses have increased over the past 5 years at a rate of -43.4% per year.

Accelerating Growth: Unable to compare CYH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CYH is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (5.3%).


Return on Equity

High ROE: CYH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: CYH is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CYH is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Community Health Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CYH has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CYH has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CYH has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CYH's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: CYH has a high level of physical assets or inventory.

Debt Coverage by Assets: CYH has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CYH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CYH has less than a year of cash runway if free cash flow continues to reduce at historical rates of -83.3% each year


Next Steps

Dividend

What is Community Health Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CYH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CYH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CYH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CYH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CYH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Community Health Systems's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Wayne Smith (73yo)

22.5yrs

Tenure

US$7,024,719

Compensation

Mr. Wayne T. Smith serves as the Chief Executive Officer at CHSPSC, LLC. Mr. Smith has been the Chairman and Chief Executive Officer at Community Health Systems, Inc. since February 2001 and April 1997 res ...


CEO Compensation Analysis

Compensation vs. Market: Wayne's total compensation ($USD7.02M) is about average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Wayne's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.1yrs

Average Tenure

55yo

Average Age

Experienced Management: CYH's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

10.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CYH's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: CYH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$2,382,48529 Aug 19
Wayne Smith
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,200,000
Max PriceUS$2.18
BuyUS$46,30027 Aug 19
Benjamin Fordham
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares25,000
Max PriceUS$1.85
BuyUS$57,25008 Aug 19
Benjamin Fordham
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares25,000
Max PriceUS$2.29
BuyUS$12,67229 May 19
Michael Dinkins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$3.17
BuyUS$320,00020 May 19
James Ely
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$3.25
BuyUS$22,71908 May 19
Wayne Smith
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares6,551
Max PriceUS$3.47
BuyUS$3,345,19207 May 19
Wayne Smith
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares993,449
Max PriceUS$3.43

Ownership Breakdown


Management Team

  • Wayne Smith (73yo)

    Chairman & CEO

    • Tenure: 22.5yrs
    • Compensation: US$7.02m
  • Tim Hingtgen (51yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$2.98m
  • Ben Fordham (66yo)

    Executive VP

    • Tenure: 2.5yrs
    • Compensation: US$1.79m
  • Andi Bosshart

    Senior VP

    • Tenure: 0yrs
  • Ross Comeaux

    Vice President of Investor Relation

    • Tenure: 0yrs
  • Tom Aaron (57yo)

    Executive VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$1.90m
  • Matt Hayes (48yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.1yrs
  • Tomi Galin

    Senior Vice President of Corporate Communications

    • Tenure: 0yrs
  • Kevin Hammons (53yo)

    Senior VP

    • Tenure: 7.6yrs
  • Manish Shah

    Chief Information Officer and Senior Vice President

    • Tenure: 3.8yrs

Board Members

  • Wayne Smith (73yo)

    Chairman & CEO

    • Tenure: 22.5yrs
    • Compensation: US$7.02m
  • Mike Dinkins (65yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$290.00k
  • Judi North (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$337.25k
  • John Fry (59yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$290.00k
  • John Clerico (77yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$305.00k
  • K. Ranga Krishnan (63yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$290.00k
  • William Jennings (75yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$290.00k
  • Tim Hingtgen (51yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$2.98m
  • James Ely (61yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$310.00k
  • H. Williams (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$290.00k

Company Information

Community Health Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Community Health Systems, Inc.
  • Ticker: CYH
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$490.873m
  • Shares outstanding: 113.89m
  • Website: https://www.chs.net

Number of Employees


Location

  • Community Health Systems, Inc.
  • 4000 Meridian Boulevard
  • Franklin
  • Tennessee
  • 37067
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CYHNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2000
CG5DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000

Biography

Community Health Systems, Inc., together with its subsidiaries, owns, leases, and operates general acute care hospitals in the United States. The company offers general acute care, emergency room, general  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:33
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.