# Community Health Systems (CYH.US)

Canonical: https://gigainvestors.com/s/CYH

Analysis as of: 2026-10-16T07:27:53.091Z. Financial observations: FY1999–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $2.99 per share; close as of 2026-10-15.

Estimated value: low $11.38 per share, central $12.95 per share, high $15.04 per share. Buy at or below the central value $12.95 per share. Valuation as of 2026-10-16T07:27:53.091Z; scenarios are not confidence intervals.

Expected annual return: 35.4% at the stated quote. About 35.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 6

- Operating margin variation: 3.27×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.12×

- FY2018: 0.01×

- FY2019: 0.05×

- FY2020: 0.10×

- FY2021: 0.11×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.04×

- FY2025: -0.79×

- LTM to Jun 2026: -0.39×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.9%

- ROIC, second-lowest year: -126.1%

- Typical minus recent gross margin: -2.3 pp

- Typical gross margin (annual median): 39.4%

- Recent gross margin (lower of latest and 3-year median): 41.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.6%

- ROIC including acquisitions, ten-year median: -2.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -18.9%

- FY2018: 2.2%

- FY2019: 7.1%

- FY2020: 21.0%

- FY2021: 15.4%

- FY2022: 7.9%

- FY2023: 9.2%

- FY2024: 6.7%

- FY2025: -140.1%

- LTM to Jun 2026: -126.1%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 2.26×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $307M

- Net income, five-year total: $136M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.2 pp

- Working capital / revenue, final three-year average: 14.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.74×

- FY2023: 1.00×

- FY2024: 0.91×

- FY2025: 1.18×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -6.7% vs 6.7%

- Per-share earnings: -15.54 to -1.02 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.6%

- Ordinary dilution, 5-year annual growth: 3.0%

- Market cap gain: -$204M

- Cumulative retained earnings: -$3.3B

- Diluted shares, 10-year annual growth: 1.6%

- Diluted shares, 5-year annual growth: 3.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $14.52

- Per-share value, starting three-year median: -$15.54

- Per-share value, ending three-year median: -$1.02

- Buybacks concentrated in cheaper years (correlation): -0.38

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $0

- Cumulative net income, 10 years: -$4.9B

- ROIC, first three-year median: -6.7%

- ROIC, last three-year median: 6.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$15.54

- FY2017: -$22.00

- FY2018: -$6.99

- FY2019: -$5.19

- FY2020: $4.38

- FY2021: $1.76

- FY2022: $0.35

- FY2023: -$1.02

- FY2024: -$3.91

- FY2025: $3.77

### accounting: pass

- Sloan accruals: -0.3%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 2.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.07×

- Accounting red flags: 0

Chart: Sloan accruals; fiscal year observations.

- FY2016: -13.0%

- FY2017: -18.5%

- FY2018: -6.7%

- FY2019: -6.2%

- FY2020: -10.4%

- FY2021: 2.4%

- FY2022: -1.7%

- FY2023: -2.4%

- FY2024: -7.1%

- FY2025: -0.3%

## Holders

## Price story

Down 78% since Dec 2021 · "Same-store net revenue per adjusted admission declined 0.5%, reflecting weaker service and payer mix." (finance.yahoo.com, Sep 2026) · sales +79.5%

Story as of 2026-10-16T09:58:36.282Z; price observation 2026-10-15.

Price needs cash profits to shrink 18.1% a year for ten years

- 2025-07-24: Community Health stock tumbles after guidance cut, CEO retirement ([investing.com](https://www.investing.com/news/stock-market-news/community-health-stock-tumbles-after-guidance-cut-ceo-retirement-93CH-4150437))

- 2025-10-24: Community Health Q3 Earnings Beat on Rising Same-Store Admissions ([finance.yahoo.com](https://finance.yahoo.com/news/community-health-q3-earnings-beat-163400039.html))

- 2026-02-19: Community Health Q4 Earnings Beat Estimates on Lower Expenses ([finance.yahoo.com](https://finance.yahoo.com/news/community-health-q4-earnings-beat-173400517.html))

- 2026-07-23: Community Health Q2 Loss Wider Than Expected, 2026 View Lowered ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/community-health-q2-loss-wider-153600078.html))

### Sales · FY2025–2026

sales +79.5%; source https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm; observed 2026-02-19.

- FY2017: $15B 

- FY2018: $14B 

- FY2019: $13B 

- FY2020: $12B 

- FY2021: $12B 

- FY2022: $12B 

- FY2023: $12B 

- FY2024: $13B 

- FY2025: $12B 

- FY2026: $22B 

### Gross margin · FY2026

gross margin 58.1%; source https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm; observed 2026-02-19.

- FY2017: 34.6% 

- FY2018: 38.3% 

- FY2019: 38.7% 

- FY2020: 37.5% 

- FY2021: 41.1% 

- FY2022: 40.2% 

- FY2023: 40.7% 

- FY2024: 41.7% 

- FY2025: 8.7% 

- FY2026: 58.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical care facilities; annual sales are USD 12.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm (filed 2026-02-19); FY2025: revenue 12485000000; grossProfit 1082000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); CYH.US: Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. The company offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. It also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, and direct-to-consumer virtual health visits. Community Health Systems, Inc. was founded in 1985 and is headquartered in Franklin, Tennessee.

### Why customers stay

Margins ranged from 8.7% to 41.7% during 2023–25; it earns 6.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 40.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 41.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 8.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2017,-0.1887557251908397],[2018,0.022491103202846974],[2019,0.07067162124965592],[2020,0.20999627004848936],[2021,0.15376857224264115],[2022,0.07921181534807778],[2023,0.09166666666666666],[2024,0.06730273498899716],[2025,-1.4005524861878451],[2026,-1.2606877528503126]]; median 0.06898717811932654. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 40% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm (filed 2026-02-19); Gross margin observations: [[2021,0.4110608020698577],[2022,0.40176889689624107],[2023,0.4068855084067254]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 7 of 10 years; bought back USD 2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 440000000; owner earnings 506000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 37000000; upkeep 432000000; owner earnings 230000000. Growth capex / owner earnings = 0.1608695652173913.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 415000000; owner earnings 80000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm (filed 2026-02-19); FY2025: growth capex 0; upkeep 335000000; owner earnings 600000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,92000000],[2017,100000000],[2018,96000000],[2019,99000000],[2020,116000000],[2021,121000000],[2022,125000000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 2000000 USD.

### Are managers owners

Insiders own 15.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); CYH.US SharesStats.PercentInsiders = 15.183 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 18.1% yearly over ten years; actual growth was 12.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate -0.26264144057564. Price 2.99; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.3706663044868919 → FY2025 4.444041518013478. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $5.28 per share

- 2016-11: $5.44 per share

- 2016-12: $5.59 per share

- 2017-01: $6.40 per share

- 2017-02: $9.75 per share

- 2017-03: $8.87 per share

- 2017-04: $8.61 per share

- 2017-05: $8.85 per share

- 2017-06: $9.96 per share

- 2017-07: $7.15 per share

- 2017-08: $7.64 per share

- 2017-09: $7.68 per share

- 2017-10: $5.90 per share

- 2017-11: $4.55 per share

- 2017-12: $4.26 per share

- 2018-01: $5.65 per share

- 2018-02: $5.12 per share

- 2018-03: $3.96 per share

- 2018-04: $3.78 per share

- 2018-05: $4.09 per share

- 2018-06: $3.32 per share

- 2018-07: $3.34 per share

- 2018-08: $3.88 per share

- 2018-09: $3.46 per share

- 2018-10: $3.16 per share

- 2018-11: $4.75 per share

- 2018-12: $2.82 per share

- 2019-01: $3.94 per share

- 2019-02: $4.95 per share

- 2019-03: $3.73 per share

- 2019-04: $3.44 per share

- 2019-05: $2.66 per share

- 2019-06: $2.67 per share

- 2019-07: $2.05 per share

- 2019-08: $2.49 per share

- 2019-09: $3.60 per share

- 2019-10: $3.54 per share

- 2019-11: $3.20 per share

- 2019-12: $2.90 per share

- 2020-01: $4.29 per share

- 2020-02: $4.93 per share

- 2020-03: $3.34 per share

- 2020-04: $3.03 per share

- 2020-05: $3.15 per share

- 2020-06: $3.01 per share

- 2020-07: $4.98 per share

- 2020-08: $5.17 per share

- 2020-09: $4.22 per share

- 2020-10: $6.24 per share

- 2020-11: $8.18 per share

- 2020-12: $7.43 per share

- 2021-01: $9.32 per share

- 2021-02: $8.56 per share

- 2021-03: $13.52 per share

- 2021-04: $11.15 per share

- 2021-05: $14.27 per share

- 2021-06: $15.44 per share

- 2021-07: $13.32 per share

- 2021-08: $12.31 per share

- 2021-09: $11.70 per share

- 2021-10: $13.10 per share

- 2021-11: $12.03 per share

- 2021-12: $13.31 per share

- 2022-01: $12.69 per share

- 2022-02: $10.51 per share

- 2022-03: $11.87 per share

- 2022-04: $7.67 per share

- 2022-05: $5.24 per share

- 2022-06: $3.75 per share

- 2022-07: $2.98 per share

- 2022-08: $2.66 per share

- 2022-09: $2.15 per share

- 2022-10: $2.87 per share

- 2022-11: $3.43 per share

- 2022-12: $4.32 per share

- 2023-01: $5.22 per share

- 2023-02: $6.06 per share

- 2023-03: $4.90 per share

- 2023-04: $6.34 per share

- 2023-05: $3.27 per share

- 2023-06: $4.40 per share

- 2023-07: $4.39 per share

- 2023-08: $3.38 per share

- 2023-09: $2.90 per share

- 2023-10: $2.14 per share

- 2023-11: $2.57 per share

- 2023-12: $3.13 per share

- 2024-01: $3.67 per share

- 2024-02: $2.79 per share

- 2024-03: $3.50 per share

- 2024-04: $3.30 per share

- 2024-05: $3.96 per share

- 2024-06: $3.36 per share

- 2024-07: $5.26 per share

- 2024-08: $5.45 per share

- 2024-09: $6.07 per share

- 2024-10: $4.05 per share

- 2024-11: $3.44 per share

- 2024-12: $2.99 per share

- 2025-01: $3.20 per share

- 2025-02: $3.01 per share

- 2025-03: $2.70 per share

- 2025-04: $2.73 per share

- 2025-05: $3.88 per share

- 2025-06: $3.40 per share

- 2025-07: $2.60 per share

- 2025-08: $2.76 per share

- 2025-09: $3.21 per share

- 2025-10: $3.88 per share

- 2025-11: $3.46 per share

- 2025-12: $3.12 per share

- 2026-01: $3.21 per share

- 2026-02: $3.46 per share

- 2026-03: $2.94 per share

- 2026-04: $2.84 per share

- 2026-05: $2.72 per share

- 2026-06: $3.34 per share

- 2026-07: $2.79 per share

- 2026-08: $2.92 per share

- 2026-09: $2.86 per share

- 2026-10: $2.99 per share

## Annual estimated value (USD per share)

- FY2016: low $14.79 per share, central $16.83 per share, high $19.55 per share

- FY2017: low $9.70 per share, central $10.72 per share, high $12.08 per share

- FY2022: low $6.72 per share, central $7.65 per share, high $8.88 per share

- FY2023: low $6.86 per share, central $7.80 per share, high $9.06 per share

- FY2024: low $6.85 per share, central $7.79 per share, high $9.05 per share

- FY2025: low $6.70 per share, central $7.61 per share, high $8.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1108109/000119312526059509/cyh-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.