Community Health Systems, Inc. CYH

Competitive advantage analysis · healthcare

Corporate Default
Overall moat score
64/100
Moderate

About Community Health Systems, Inc.

Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. The company offers 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. It also provides outpatient services at primary care practices, urgent care centers, free-standing … Full CYH analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 85.1% (top 10%) and operating margin at 11.9% (top 16%) indicate strong pricing power.
  • ROIC Sustainably Above Peers ROIC at 80.8th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.39), raising refinancing risk.
  • Weak or Negative Cash Flow Cash generation is weak (score 0.35), limiting financial flexibility.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
76

Where CYH ranks in Medical Care Facilities

Community Health Systems, Inc. ranks #15 of 58 scored companies in Medical Care Facilities by moat score — the top 26%. The widest moat in the group is Encompass Health Corporation (EHC) at 77/100.

Moat scores for companies ranked near CYH in Medical Care Facilities
# Company Moat score Rating
11 The Ensign Group, Inc. ENSG 69/100 Moderate
12 Addus HomeCare Corporation ADUS 68/100 Moderate
13 Pediatrix Medical Group, Inc. MD 65/100 Moderate
14 Healthcare Services Group, Inc. HCSG 65/100 Moderate
15 Community Health Systems, Inc. CYH 64/100 Moderate
16 Fresenius Medical Care AG FMS 64/100 Moderate
17 Option Care Health, Inc. OPCH 62/100 Moderate
18 Ardent Health Partners, Inc. ARDT 62/100 Moderate
19 Auna SA AUNA 62/100 Moderate

See every General Corporate company ranked by moat score →

How CYH scores on the Corporate Default defenses

Pricing Power

Score 76 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 55 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 59 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 72 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 44 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 75 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding CYH's moat

What is Community Health Systems, Inc.'s moat score?

Community Health Systems, Inc. (CYH) scores 64 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #15 of 58 scored companies in Medical Care Facilities, the top 26%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 57 companies in Medical Care Facilities. Its strongest defense is Pricing Power (76/100) and its weakest is Resilience (44/100).

How does Community Health Systems, Inc. compare with other Medical Care Facilities companies?

Community Health Systems, Inc. ranks #15 of 58 scored companies in Medical Care Facilities by moat score. The widest moat in Medical Care Facilities is Encompass Health Corporation (EHC) at 77/100. The companies ranked closest are Healthcare Services Group, Inc. (HCSG) at 65 just above it and Fresenius Medical Care AG (FMS) at 64 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 57 companies in Medical Care Facilities. The defenses are then weighted to produce the overall score out of 100.

Why is Community Health Systems, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Community Health Systems, Inc.?

The Corporate Default template measures 6 defenses, and CYH scores: Pricing Power (76), Cost Advantage (55), Customer Stickiness (59), Capital Efficiency (72), Resilience (44), Scale & Market Position (75). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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