SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SEM - US81619Q1058 - Common Stock
15.01 USD
-0.02 (-0.13%)
15.01 USD
0 (0%)
Taking everything into account, SEM scores 4 out of 10 in our fundamental rating. SEM was compared to 102 industry peers in the Health Care Providers & Services industry. SEM has a medium profitability rating, but doesn't score so well on its financial health evaluation. SEM has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SEM had positive earnings in the past year.
In the past year SEM had a positive cash flow from operations.
Each year in the past 5 years SEM has been profitable.
Each year in the past 5 years SEM had a positive operating cash flow.
1.2 Ratios
SEM's Return On Assets of 3.72% is fine compared to the rest of the industry. SEM outperforms 67.65% of its industry peers.
SEM has a better Return On Equity (12.53%) than 76.47% of its industry peers.
SEM has a Return On Invested Capital of 4.34%. This is comparable to the rest of the industry: SEM outperforms 50.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SEM is significantly below the industry average of 9.61%.
The 3 year average ROIC (3.10%) for SEM is below the current ROIC(4.34%), indicating increased profibility in the last year.
| 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 75.49% of the companies in the same industry.
In the last couple of years the Profit Margin of SEM has grown nicely.
Looking at the Operating Margin, with a value of 5.17%, SEM is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
In the last couple of years the Operating Margin of SEM has declined.
SEM has a Gross Margin of 12.22%. This is in the lower half of the industry: SEM underperforms 72.55% of its industry peers.
In the last couple of years the Gross Margin of SEM has declined.
| 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
SEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SEM has been increased compared to 1 year ago.
SEM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SEM has been reduced compared to a year ago.
2.2 Solvency
SEM has an Altman-Z score of 1.57. This is a bad value and indicates that SEM is not financially healthy and even has some risk of bankruptcy.
SEM's Altman-Z score of 1.57 is on the low side compared to the rest of the industry. SEM is outperformed by 62.75% of its industry peers.
SEM has a debt to FCF ratio of 10.18. This is a negative value and a sign of low solvency as SEM would need 10.18 years to pay back of all of its debts.
SEM has a Debt to FCF ratio (10.18) which is comparable to the rest of the industry.
SEM has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
SEM has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: SEM underperforms 63.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.44
WACC9.95%
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.
The Current ratio of SEM (1.09) is worse than 64.71% of its industry peers.
A Quick Ratio of 1.09 indicates that SEM should not have too much problems paying its short term obligations.
The Quick ratio of SEM (1.09) is comparable to the rest of the industry.
| 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.
SEM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.88% yearly.
SEM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.48%.
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 -2.53% yearly.
The Revenue is expected to decrease by -2.85% on average over the next years.
EPS Next Y-24.41%
EPS Next 2Y-10.2%
EPS Next 3Y-2.53%
EPS Next 5YN/A
Revenue Next Year-16.41%
Revenue Next 2Y-6.62%
Revenue Next 3Y-2.85%
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 rather expensively with a Price/Earnings ratio of 17.45.
Based on the Price/Earnings ratio, SEM is valued a bit cheaper than 77.45% of the companies in the same industry.
SEM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.28, which indicates a very decent valuation of SEM.
SEM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SEM is cheaper than 87.25% of the companies in the same industry.
SEM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
77.45% of the companies in the same industry are more expensive than SEM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SEM is valued cheaper than 84.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
The decent profitability rating of SEM may justify a higher PE ratio.
A cheap valuation may be justified as SEM's earnings are expected to decrease with -2.53% in the coming years.
PEG (NY)N/A
PEG (5Y)2.97
EPS Next 2Y-10.2%
EPS Next 3Y-2.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, SEM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.58, SEM pays a better dividend. On top of this SEM pays more dividend than 89.22% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SEM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
SEM has been paying a dividend for at least 10 years, so it has 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
SEM pays out 18.80% of its income as dividend. This is a sustainable payout ratio.
DP18.8%
EPS Next 2Y-10.2%
EPS Next 3Y-2.53%
15.01
-0.02 (-0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.89%
Inst Owner Change-0.2%
Ins Owners11.06%
Ins Owner Change4.92%
Market Cap1.86B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts77.78
Price Target18.53 (23.45%)
Short Float %4.51%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)0.93%
PT rev (3m)4.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)3.91%
EPS NY rev (3m)8.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 11.28 | ||
| P/S | 0.36 | ||
| P/FCF | 10.68 | ||
| P/OCF | 4.56 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.54 |
EPS(TTM)0.86
EY5.73%
EPS(NY)1.33
Fwd EY8.87%
FCF(TTM)1.41
FCFY9.36%
OCF(TTM)3.29
OCFY21.93%
SpS41.89
BVpS13.64
TBVpS-6.02
PEG (NY)N/A
PEG (5Y)2.97
Graham Number16.25
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 | 1.57 |
F-Score5
WACC9.95%
ROIC/WACC0.44
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-24.41%
EPS Next 2Y-10.2%
EPS Next 3Y-2.53%
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-16.41%
Revenue Next 2Y-6.62%
Revenue Next 3Y-2.85%
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y-27.83%
EBIT growth 5Y-10.68%
EBIT Next Year-15.94%
EBIT Next 3Y-1.02%
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 4 / 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 6 / 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 17.45 and the Price/Book (PB) ratio is 1.1.
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%.