CYH

Community Health Systems, Inc.

$3.22BuyTarget $28.46Report: Jan 14, 2026Healthcare • Medical - Care Facilities • Turnaround Candidate

Price History

Pelican View

Current$3.22+783.8%

Rec: BuyConviction: Medium

Entry Target

$3.22

(0% above current)

Fair Value

$28.46

(784% above current)

Stop Loss

$2.01

(38% below current)

Position Size

Half

Time Horizon

Transitional

Key Metrics

Market Data

52 Week High$4.47

52 Week Low$2.24

Avg. 3 Month Volume1.70M

Efficiency

LTM Gross Margin84.8%

LTM EBITDA Margin13.6%

LTM EBIT Margin10.1%

LTM Operating Margin8.6%

LTM ROA2.4%

LTM ROE-18.9%

LTM ROIC6.6%

LTM ROCE11.1%

Capital Structure

Market Cap (MM)$473.7M

Enterprise Value (MM)$11.6B

Shares Outstanding133.79M

Total Debt (MM)$11.24B

Cash & Equivalents (MM)$123.00M

LTM Net Debt (MM)$11.12B

LTM Net Debt/EBITDA6.5x

Growth

TTM Rev. Growth0.7%

Last 3-Yr Rev. CAGR0.9%

Last 3-Yr EBITDA CAGR4.6%

Last 3-Yr EPS CAGRN/A

Valuation

Street Target Price$3.37

LTM EV/Revenue0.9x

LTM EV/Gross Profit1.1x

LTM EV/EBIT9.1x

LTM EV/EBITDA6.7x

LTM P/E1.4x

LTM EV/FCF76.8x

LTM P/FCF3.1x

LTM P/TB0.0x

LTM P/B-0.3x

Dividend YieldN/A

Payout Ratio0.0%

About the Company

Community Health Systems, Inc. is one of the nation's largest healthcare companies. Through its subsidiaries, it develops and operates healthcare delivery systems in 39 distinct markets across 15 states. As of December 31, 2024, the company owned or leased 76 affiliated hospitals with over 11,000 beds and operated more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, ambulatory surgery centers, and imaging centers. The company provides a broad range of general and specialized hospital healthcare services and outpatient services to patients in the communities it serves.

Revenue Generation

The company generates revenues by providing a broad range of general and specialized hospital healthcare services and outpatient services to patients in the communities in which it is located. Revenues are primarily derived from inpatient and outpatient services. The company's revenues are concentrated in a small number of states, with Indiana, Alabama, Texas, and Florida representing significant geographic concentrations. For the year ended December 31, 2024, net operating revenues were approximately $12.6 billion.

Investment Thesis

Executive SummaryCommunity Health Systems is a distressed hospital operator executing a binary survival pivot through a 1 billion dollar divestiture program to service an 11.2 billion dollar debt load. While the market is pricing in near-term insolvency, our analysis suggests a bridge to safety exists via the monetization of a 76-hospital asset base and a de-risked maturity wall until 2027. The thesis is complicated by a leadership transition following the retirement of CEO Tim Hingtgen, but the 11.7% insider ownership and accumulation by distressed specialists like Apollo provide a significant floor for this high-asymmetry turnaround bet.

Recent Activity

2025-11-15-7.67%

CastleKnight Master Fund reported 8.8% ownership in CHS Class A common stock.

2025-10-31-6.05%

Community Health Systems agreed to sell its 80% ownership in Tennova Healthcare-Clarksville to Vanderbilt University Medical Center for $600 million.

2025-10-25+7.56%

Community Health Systems Announces Definitive Agreement To Sell Three Pennsylvania Hospitals To Tenor Health Foundation

Valuation Table

Method	Implied Value	Weight	Weighted Value
DCF	$11.37	50%	$5.69
Comps	$25.34	10%	$2.53
NLV	$118.23	40%	$47.29
Total Weighted			$55.51