Community Health Systems Inc

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CYH : NYSE : Health Care
$12.79 -0.21 | -1.60%
Today's Range: 12.46 - 13.00
Avg. Daily Volume: 4,037,400
07/27/16 - 3:59 PM ET

Financial Analysis


COMMUNITY HEALTH SYSTEMS INC's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. COMMUNITY HEALTH SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.28 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.91% 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 FY16 Q1 FY15
Net Sales ($mil)4999.04911.0
EBITDA ($mil)611.0702.0
EBIT ($mil)313.0406.0
Net Income ($mil)11.079.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)181.0222.0
Total Assets ($mil)26724.027119.0
Total Debt ($mil)16914.016969.0
Equity ($mil)4003.04081.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin13.4215.86
EBITDA Margin12.2214.29
Operating Margin6.268.27
Sales Turnover0.730.71
Return on Assets0.331.04
Return on Equity2.848.11
Debt Q1 FY16 Q1 FY15
Current Ratio1.721.72
Debt/Capital0.810.81
Interest Expense251.0241.0
Interest Coverage1.251.68


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)113.76118.03
Div / share0.00.0
EPS0.110.79
Book value / share35.1934.58
Institutional Own % n/a n/a
Avg Daily Volume3967505.03861756.0

Valuation


SELL. This stock's P/E ratio indicates a discount compared to an average of 21.90 for the Health Care Providers & Services industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 0.38 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.34. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of 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 13.65 Peers 21.90   CYH 1.17 Peers 12.23

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CYH is trading at a significant discount to its peers.

 

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 5.09 Peers 16.46   CYH 0.42 Peers 0.95

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CYH is trading at a significant discount to its peers.

 

Discount. 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.

CYH trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CYH 0.38 Peers 3.34   CYH -66.21 Peers 22.01

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 0.08 Peers 0.81   CYH 0.77 Peers 14.30

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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