SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SEM - US81619Q1058 - Common Stock
13.65 USD
+0.65 (+5%)
13.65 USD
0 (0%)
SEM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of SEM while its profitability can be described as average. SEM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SEM was profitable.
In the past year SEM had a positive cash flow from operations.
Each year in the past 5 years SEM has been profitable.
In the past 5 years SEM always reported a positive cash flow from operatings.
1.2 Ratios
SEM's Return On Assets of 3.72% is fine compared to the rest of the industry. SEM outperforms 69.00% of its industry peers.
SEM's Return On Equity of 12.53% is fine compared to the rest of the industry. SEM outperforms 76.00% of its industry peers.
With a Return On Invested Capital value of 4.34%, SEM perfoms like the industry average, outperforming 49.00% of the companies in the same industry.
SEM had an Average Return On Invested Capital over the past 3 years of 3.10%. This is significantly below the industry average of 9.38%.
The last Return On Invested Capital (4.34%) for SEM is above the 3 year average (3.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 12.53% | ||
| ROIC | 4.34% |
ROA(3y)3%
ROA(5y)3.51%
ROE(3y)15.18%
ROE(5y)20.83%
ROIC(3y)3.1%
ROIC(5y)4.82%
1.3 Margins
Looking at the Profit Margin, with a value of 4.08%, SEM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
SEM's Profit Margin has improved in the last couple of years.
SEM has a Operating Margin (5.17%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SEM has declined.
Looking at the Gross Margin, with a value of 12.22%, SEM is doing worse than 73.00% of the companies in the same industry.
SEM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.17% | ||
| PM (TTM) | 4.08% | ||
| GM | 12.22% |
OM growth 3Y-23.39%
OM growth 5Y-9.78%
PM growth 3Y-13.32%
PM growth 5Y9.18%
GM growth 3Y-6.23%
GM growth 5Y-3.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SEM is destroying value.
Compared to 1 year ago, SEM has more shares outstanding
The number of shares outstanding for SEM has been reduced compared to 5 years ago.
Compared to 1 year ago, SEM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that SEM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.53, SEM is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of SEM is 10.18, which is on the high side as it means it would take SEM, 10.18 years of fcf income to pay off all of its debts.
SEM has a Debt to FCF ratio of 10.18. This is comparable to the rest of the industry: SEM outperforms 45.00% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that SEM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.03, SEM is doing worse than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.42
WACC10.23%
2.3 Liquidity
SEM has a Current Ratio of 1.09. This is a normal value and indicates that SEM is financially healthy and should not expect problems in meeting its short term obligations.
SEM has a Current ratio of 1.09. This is in the lower half of the industry: SEM underperforms 66.00% of its industry peers.
SEM has a Quick Ratio of 1.09. This is a normal value and indicates that SEM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.09, SEM is not doing good in the industry: 61.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for SEM have decreased strongly by -59.81% in the last year.
The Earnings Per Share has been growing slightly by 5.88% on average over the past years.
Looking at the last year, SEM shows a small growth in Revenue. The Revenue has grown by 7.48% in the last year.
SEM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.00% yearly.
EPS 1Y (TTM)-59.81%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-46.51%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-5.8%
Revenue growth 5Y-1%
Sales Q2Q%-22.59%
3.2 Future
SEM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.12% yearly.
The Revenue is expected to decrease by -2.64% on average over the next years.
EPS Next Y-27.26%
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
EPS Next 5YN/A
Revenue Next Year-16.48%
Revenue Next 2Y-6.45%
Revenue Next 3Y-2.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SEM is valuated correctly with a Price/Earnings ratio of 15.87.
Based on the Price/Earnings ratio, SEM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.45, SEM is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.56 indicates a reasonable valuation of SEM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 87.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, SEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
SEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SEM is cheaper than 78.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SEM is valued cheaper than 87.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
A cheap valuation may be justified as SEM's earnings are expected to decrease with -4.12% in the coming years.
PEG (NY)N/A
PEG (5Y)2.7
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, SEM has a reasonable but not impressive dividend return.
SEM's Dividend Yield is rather good when compared to the industry average which is at 2.57. SEM pays more dividend than 89.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, SEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
SEM has paid a dividend for at least 10 years, which is a reliable track record.
SEM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
18.80% of the earnings are spent on dividend by SEM. This is a low number and sustainable payout ratio.
DP18.8%
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
13.65
+0.65 (+5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.75%
Inst Owner Change-0.21%
Ins Owners10.41%
Ins Owner Change8.08%
Market Cap1.69B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts80
Price Target18.36 (34.51%)
Short Float %3.34%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP18.8%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.01%
Min EPS beat(2)30.21%
Max EPS beat(2)49.82%
EPS beat(4)2
Avg EPS beat(4)-20.63%
Min EPS beat(4)-158.51%
Max EPS beat(4)49.82%
EPS beat(8)4
Avg EPS beat(8)-7.1%
EPS beat(12)7
Avg EPS beat(12)-2.62%
EPS beat(16)9
Avg EPS beat(16)-3.49%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)1.45%
Revenue beat(4)1
Avg Revenue beat(4)-3.63%
Min Revenue beat(4)-11.07%
Max Revenue beat(4)1.45%
Revenue beat(8)4
Avg Revenue beat(8)-1.53%
Revenue beat(12)7
Avg Revenue beat(12)-0.91%
Revenue beat(16)10
Avg Revenue beat(16)5.68%
PT rev (1m)3.85%
PT rev (3m)-1.82%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)4.09%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 10.56 | ||
| P/S | 0.33 | ||
| P/FCF | 9.73 | ||
| P/OCF | 4.15 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)0.86
EY6.3%
EPS(NY)1.29
Fwd EY9.47%
FCF(TTM)1.4
FCFY10.28%
OCF(TTM)3.29
OCFY24.08%
SpS41.83
BVpS13.62
TBVpS-6.01
PEG (NY)N/A
PEG (5Y)2.7
Graham Number16.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 12.53% | ||
| ROCE | 5.65% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 9.14% | ||
| OM | 5.17% | ||
| PM (TTM) | 4.08% | ||
| GM | 12.22% | ||
| FCFM | 3.35% |
ROA(3y)3%
ROA(5y)3.51%
ROE(3y)15.18%
ROE(5y)20.83%
ROIC(3y)3.1%
ROIC(5y)4.82%
ROICexc(3y)3.14%
ROICexc(5y)4.99%
ROICexgc(3y)6.3%
ROICexgc(5y)12.6%
ROCE(3y)4.06%
ROCE(5y)6.32%
ROICexgc growth 3Y-27.06%
ROICexgc growth 5Y-9.65%
ROICexc growth 3Y-20.88%
ROICexc growth 5Y-5.51%
OM growth 3Y-23.39%
OM growth 5Y-9.78%
PM growth 3Y-13.32%
PM growth 5Y9.18%
GM growth 3Y-6.23%
GM growth 5Y-3.9%
F-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 155.87% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 97.47% | ||
| Profit Quality | 82.19% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.53 |
F-Score5
WACC10.23%
ROIC/WACC0.42
Cap/Depr(3y)103.75%
Cap/Depr(5y)94.3%
Cap/Sales(3y)4.39%
Cap/Sales(5y)3.74%
Profit Quality(3y)115.02%
Profit Quality(5y)150.87%
High Growth Momentum
Growth
EPS 1Y (TTM)-59.81%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-46.51%
EPS Next Y-27.26%
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
EPS Next 5YN/A
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-5.8%
Revenue growth 5Y-1%
Sales Q2Q%-22.59%
Revenue Next Year-16.48%
Revenue Next 2Y-6.45%
Revenue Next 3Y-2.64%
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y-27.83%
EBIT growth 5Y-10.68%
EBIT Next Year-15.89%
EBIT Next 3Y-0.87%
EBIT Next 5YN/A
FCF growth 1Y-9.04%
FCF growth 3Y10.24%
FCF growth 5Y0.52%
OCF growth 1Y-1.83%
OCF growth 3Y8.88%
OCF growth 5Y3.07%
SELECT MEDICAL HOLDINGS CORP / SEM FAQ
Can you provide the ChartMill fundamental rating for SELECT MEDICAL HOLDINGS CORP?
ChartMill assigns a fundamental rating of 3 / 10 to SEM.
Can you provide the valuation status for SELECT MEDICAL HOLDINGS CORP?
ChartMill assigns a valuation rating of 6 / 10 to SELECT MEDICAL HOLDINGS CORP (SEM). This can be considered as Fairly Valued.
Can you provide the profitability details for SELECT MEDICAL HOLDINGS CORP?
SELECT MEDICAL HOLDINGS CORP (SEM) has a profitability rating of 5 / 10.
What is the valuation of SELECT MEDICAL HOLDINGS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SELECT MEDICAL HOLDINGS CORP (SEM) is 15.87 and the Price/Book (PB) ratio is 1.
Is the dividend of SELECT MEDICAL HOLDINGS CORP sustainable?
The dividend rating of SELECT MEDICAL HOLDINGS CORP (SEM) is 5 / 10 and the dividend payout ratio is 18.8%.