Community Health Systems Inc

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CYH : NYSE : Health Care
$9.33 | %
Today's Range: 9.15 - 9.4173
Avg. Daily Volume: 3120800.0
06/23/17 - 4:01 PM ET

Financial Analysis


COMMUNITY HEALTH SYSTEMS INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. COMMUNITY HEALTH SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 64.30% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)4486.04999.0
EBITDA ($mil)516.0611.0
EBIT ($mil)280.0313.0
Net Income ($mil)-199.011.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)247.0181.0
Total Assets ($mil)21660.026724.0
Total Debt ($mil)15245.016914.0
Equity ($mil)1429.04003.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin12.6613.42
EBITDA Margin11.512.22
Operating Margin6.246.26
Sales Turnover0.830.73
Return on Assets-8.910.33
Return on Equity-134.072.84
Debt Q1 FY17 Q1 FY16
Current Ratio1.591.72
Debt/Capital0.910.81
Interest Expense229.0251.0
Interest Coverage1.221.25


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)114.69113.76
Div / share0.00.0
EPS-1.780.11
Book value / share12.4635.19
Institutional Own % n/a n/a
Avg Daily Volume3300956.03865167.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.72 indicates a significant discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 3.48. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, COMMUNITY HEALTH SYSTEMS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CYH NM Peers 23.93   CYH 0.94 Peers 13.60

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CYH's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CYH is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CYH 10.01 Peers 16.86   CYH NA Peers 1.29

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CYH is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CYH 0.72 Peers 3.48   CYH -1881.44 Peers 17.14

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CYH is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CYH is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CYH 0.06 Peers 0.91   CYH -8.20 Peers 10.24

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CYH is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CYH significantly trails its peers on the basis of sales growth

 

 

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