Community Health Systems ($CYH) Possible Buy to $51 Confident Investor Rating: Good

Company name Community Health Systems
Stock ticker CYH
Live stock price [stckqut]CYH[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $61.87
Target stock price (averages with growth) $75.55
Target stock price (averages with no growth) $55.15
Target stock price (manual assumptions) $39.9

The following company description is from Google Finance: http://www.google.com/finance?q=cyh

Community Health Systems, Inc. is an operator of hospitals in the United States. The Company provides healthcare services through the hospitals that it owns and operates in non-urban and selected urban markets throughout the United States. As of December 31, 2011, the Company owned or leased 131 hospitals, including four stand-alone rehabilitation or psychiatric hospitals. These hospitals are located across 29 states, with an aggregate of 19,695 licensed beds. The Company generates revenues by providing a range of general and specialized hospital healthcare services to patients in the communities in which it is located. Services provided by the Company's hospitals include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. In July 2012, the Company's subsidiaries acquired all of the assets of Memorial Health Systems in York, Pennsylvania.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock. My only concern is that sales growth is starting to slow and if the company doesn't reverse this trend, it could be in trouble. When sales drops, it is much harder to keep the other metrics growing.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.