Community Health Systems Inc. Common Stock (CYH)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages and conservative balance sheets, and Community Health Systems does not fit that mold. It operates acute-care hospitals, a capital-intensive, regulated business with little pricing power and no obvious moat. The Lynch-style turnaround label is fair: after net losses of $516.0M in the year ended 2024-12-31 and $133.0M in the year ended 2023-12-31, it earned $509.0M in the year ended 2025-12-31. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.8B, net income $70.0M, and diluted EPS $0.51. But that was far below fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $282.0M and diluted EPS $2.09; fiscal Q1 2026, the quarter ended 2026-03-31, lost $58.0M. So the profit record is uneven. The supplied FairStock metrics show a P/E of 1.62 at the 2026-10-13 close and EV/EBITDA of 5.95, which look statistically cheap. However, trailing free cash flow is negative $185.0M, a negative 43.9% FCF yield, and the Altman Z-Score of 0.01 signals severe financial distress. ROCE is only 4.63%. A Piotroski F-Score of 8/9 offers some encouragement, but not enough to offset the cash burn. This is not a classic Graham bargain; it is a speculative turnaround where the low multiple reflects real risk. I would want evidence of sustained positive cash generation and stable revenue before trusting headline earnings.

In plain English: Community Health Systems runs acute-care hospitals and related outpatient services in the United States. The business has returned to profit after prior losses, but sales are falling, cash generation is negative, and the financial risk looks high. At $2.99, the stock looks very cheap compared with reported earnings, though those earnings may not be reliable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer