Community Healthcare Trust Incorporated Common Stock (CHCT)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $71 million in annual free cash flow (14.5% yield on market cap)
• Healthy net profit margin of 11.9% showing consistent profitability
• Attractive 11.1% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($5) with negative 229% margin of safety—limited downside protection
• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Community Healthcare Trust Incorporated Common Stock is a micro-cap real estate company valued at $490 million. The business generates $121 million in annual revenue with a 11.9% net margin and $71 million in free cash flow. From a quality standpoint, Community shows distressed Altman Z-Score of 0.4 warrants caution and modest 1% ROE. On valuation, the stock is commanding a steep 213.4x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 5.6% and profit growth of 687.5%. The 11.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $71 million in annual free cash flow (14.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 213x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer