Community Health Systems (NYSE:$CYH) is a medical company that specializes in operating general acute care hospitals and outpatient facilities across the country, but is it a sound investment? Let’s take a look at what analysts are saying.
What is Community Health Systems?
Community Health Systems is a medical company that focuses on acquiring and operating outpatient facilities and acute care hospitals countrywide. The services provided by their hospitals include emergency rooms, general and specialty surgery, internal medicine, obstetrics, diagnostic, rehabilitation, psychiatric services, and general acute care.
Valuation
Community Health Systems currently has a sizeable gross revenue of $17.48 billion. Their Price/Earnings Ratio sits at -1.27 with an EBITDA of $1.78 billion. The EPS according to their last report is -$5.71, representing a company that is high in the negative for EPS. However, despite trading at a lower Price/Earnings ratio, the stock is not very competitive with similar stocks as far as price goes.
Profitability
Community Health Systems has a Return on Equity of 0.07% and a Return on Assets of 0.01%. More importantly, they have Net Margins of -3.63%, indicating negative growth.
What are Analysts Rating?
Community Health Systems currently has 12 ‘Hold’ ratings, 4 ‘Sell’ ratings, and 1 ‘Buy’ rating from analysts. This gives the company an aggregate score of 1.82 or a consensus, indicating an overall ‘Hold’ rating.
They currently have a consensus target price of $7.52. This suggests a potential upside of 3.54%.
Insiders and Institutions
Institutional investors currently hold 94.7% of the company, while 4.7% of the company is held by insiders. This would indicate that while the institutions have relative faith in the company, insiders have been feeling more bearish towards their own company.
Volatility
Community Health Systems has a beta of 1.59. The beta system remains neutral at 1 and indicates the amount of volatility the particular stock experiences compared the market average. If a number dips below 1, it is considered very safe from potential market volatility, and if it goes above one, it indicates a more irritable stock. At 1.59, Community Health Systems represents an above average risk, at 50% more risky than the S&P 500.
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