CYH

Community Health Systems Inc.

Healthcare


Presented:03/19/2013
Price:$44.34
Cap:$4.00B
Current Price:$5.63
Cap:$0.78B

Presented

Date03/19/2013
Price$44.34
Market Cap$4.00B
Ent Value$13.77B
P/E Ratio62.48x
Book Value$35.13
Div YieldN/A
Shares O/S90.21M
Ave Daily Vol1,200,000
Short Int3.13%

Current

Price$5.63
Market Cap$0.78B
Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. The company operates general acute care hospitals that offer a range of inpatient and outpatient medical and surgical services, such as general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services based on individual community needs. It also provides outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies. In addition, the company offers management and consulting services to non-affiliated general acute care hospitals. As of January 27, 2014, it owned, leased, or operated 206 affiliated hospitals in 29 states with approximately 31,000 licensed beds. Community Health Systems, Inc. was founded in 1985 and is headquartered in Franklin, Tennessee.

Highlights

The presenter is bullish on the for-profit hospital group, and believes CYH has the most upside potential. Despite the hospitals’ recent outperformance and CYH being up 40%+ year-to-date (and, up ~100% over the past 12 months), he believes it is still early enough to benefit from the mix shift and impact broader insurance coverage (as a result of healthcare reform) should have on the group. CYH’s operating and financial leverage are attractive, and he offered the following points supporting his bullish stance:

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Idea Discussion

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