SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
NYSE:SEM - New York Stock Exchange, Inc. - US81619Q1058 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SEM. SEM was compared to 108 industry peers in the Health Care Providers & Services industry. SEM has an excellent profitability rating, but there are concerns on its financial health. SEM has a valuation in line with the averages, 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.
Of the past 5 years SEM 4 years were profitable.
Of the past 5 years SEM 4 years had a positive operating cash flow.
1.2 Ratios
SEM has a better Return On Assets (4.49%) than 75.70% of its industry peers.
The Return On Equity of SEM (18.76%) is better than 88.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.13%, SEM belongs to the top of the industry, outperforming 83.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SEM is in line with the industry average of 8.14%.
The 3 year average ROIC (6.79%) for SEM is below the current ROIC(9.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 18.76% | ||
| ROIC | 9.13% |
ROA(3y)3.45%
ROA(5y)3.11%
ROE(3y)22.31%
ROE(5y)21.82%
ROIC(3y)6.79%
ROIC(5y)6.39%
1.3 Margins
Looking at the Profit Margin, with a value of 4.10%, SEM is in the better half of the industry, outperforming 78.50% 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 9.15%, SEM belongs to the top of the industry, outperforming 83.18% of the companies in the same industry.
In the last couple of years the Operating Margin of SEM has remained more or less at the same level.
SEM's Gross Margin of 14.83% is on the low side compared to the rest of the industry. SEM is outperformed by 71.96% of its industry peers.
SEM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.15% | ||
| PM (TTM) | 4.1% | ||
| GM | 14.83% |
OM growth 3Y-1.2%
OM growth 5Y0.28%
PM growth 3Y-7.99%
PM growth 5Y6.07%
GM growth 3Y-1.97%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SEM is still creating some value.
SEM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 1.88 indicates that SEM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SEM's Altman-Z score of 1.88 is in line compared to the rest of the industry. SEM outperforms 46.73% of its industry peers.
SEM has a debt to FCF ratio of 8.95. This is a slightly negative value and a sign of low solvency as SEM would need 8.95 years to pay back of all of its debts.
SEM's Debt to FCF ratio of 8.95 is fine compared to the rest of the industry. SEM outperforms 62.62% of its industry peers.
SEM has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
SEM's Debt to Equity ratio of 1.63 is on the low side compared to the rest of the industry. SEM is outperformed by 72.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.05
WACC8.66%
2.3 Liquidity
SEM has a Current Ratio of 1.13. 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 (1.13) is worse than 70.09% of its industry peers.
SEM has a Quick Ratio of 1.13. This is a normal value and indicates that SEM is financially healthy and should not expect problems in meeting its short term obligations.
SEM's Quick ratio of 1.13 is on the low side compared to the rest of the industry. SEM is outperformed by 63.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for SEM have decreased by -1.51% in the last year.
Measured over the past years, SEM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.59% on average per year.
EPS 1Y (TTM)-1.51%
EPS 3Y-13.03%
EPS 5Y9.59%
EPS Q2Q%-50%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-20.88%
3.2 Future
Based on estimates for the next years, SEM will show a decrease in Earnings Per Share. The EPS will decrease by -1.75% on average per year.
SEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.57% yearly.
EPS Next Y-26.52%
EPS Next 2Y-1.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.99%
Revenue Next 2Y-0.57%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
SEM is valuated reasonably with a Price/Earnings ratio of 9.02.
Based on the Price/Earnings ratio, SEM is valued cheaper than 94.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SEM is valued rather cheaply.
A Price/Forward Earnings ratio of 12.28 indicates a correct valuation of SEM.
SEM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SEM is cheaper than 79.44% of the companies in the same industry.
SEM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEM is valued cheaper than 94.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SEM is valued cheaply inside the industry as 96.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.47 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
The decent profitability rating of SEM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-1.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.60%, SEM has a reasonable but not impressive dividend return.
The stock price of SEM dropped by -55.43% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.95, SEM pays a better dividend. On top of this SEM pays more dividend than 92.52% of the companies listed in the same industry.
SEM's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
The dividend of SEM is nicely growing with an annual growth rate of 38.03%!
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)38.03%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
17.97% of the earnings are spent on dividend by SEM. This is a low number and sustainable payout ratio.
DP17.97%
EPS Next 2Y-1.75%
EPS Next 3YN/A
17.68
-1.38 (-7.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners78.38%
Inst Owner Change6.56%
Ins Owners9.92%
Ins Owner Change-2.5%
Market Cap2.28B
Analysts77.78
Price Target30.09 (70.19%)
Short Float %3.27%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend0.5
Dividend Growth(5Y)38.03%
DP17.97%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.91%
Min EPS beat(2)-2.08%
Max EPS beat(2)-1.75%
EPS beat(4)2
Avg EPS beat(4)6.43%
Min EPS beat(4)-2.08%
Max EPS beat(4)29.14%
EPS beat(8)5
Avg EPS beat(8)6.38%
EPS beat(12)7
Avg EPS beat(12)2.23%
EPS beat(16)11
Avg EPS beat(16)16.79%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.13%
Max Revenue beat(2)0.41%
Revenue beat(4)3
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.13%
Max Revenue beat(4)1.87%
Revenue beat(8)6
Avg Revenue beat(8)0.46%
Revenue beat(12)9
Avg Revenue beat(12)8.78%
Revenue beat(16)13
Avg Revenue beat(16)14.6%
PT rev (1m)-13.87%
PT rev (3m)-32.03%
EPS NQ rev (1m)-23.08%
EPS NQ rev (3m)-23.08%
EPS NY rev (1m)-1.31%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)-16.14%
Revenue NQ rev (3m)-16.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.26 | ||
| P/FCF | 6.47 | ||
| P/OCF | 3.99 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.34 |
EPS(TTM)1.96
EY11.09%
EPS(NY)1.44
Fwd EY8.15%
FCF(TTM)2.73
FCFY15.46%
OCF(TTM)4.43
OCFY25.08%
SpS67.89
BVpS14.85
TBVpS-15.14
PEG (NY)N/A
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 18.76% | ||
| ROCE | 11.86% | ||
| ROIC | 9.13% | ||
| ROICexc | 9.4% | ||
| ROICexgc | 22.8% | ||
| OM | 9.15% | ||
| PM (TTM) | 4.1% | ||
| GM | 14.83% | ||
| FCFM | 4.03% |
ROA(3y)3.45%
ROA(5y)3.11%
ROE(3y)22.31%
ROE(5y)21.82%
ROIC(3y)6.79%
ROIC(5y)6.39%
ROICexc(3y)6.88%
ROICexc(5y)6.63%
ROICexgc(3y)17.82%
ROICexgc(5y)17.81%
ROCE(3y)8.85%
ROCE(5y)8.31%
ROICexcg growth 3Y-5.07%
ROICexcg growth 5Y-6.73%
ROICexc growth 3Y0.85%
ROICexc growth 5Y1.24%
OM growth 3Y-1.2%
OM growth 5Y0.28%
PM growth 3Y-7.99%
PM growth 5Y6.07%
GM growth 3Y-1.97%
GM growth 5Y-0.81%
F-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 8.95 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 103.4% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 56.44% | ||
| Profit Quality | 98.13% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.88 |
F-Score8
WACC8.66%
ROIC/WACC1.05
Cap/Depr(3y)97.13%
Cap/Depr(5y)87.29%
Cap/Sales(3y)3.12%
Cap/Sales(5y)2.98%
Profit Quality(3y)89.56%
Profit Quality(5y)164.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.51%
EPS 3Y-13.03%
EPS 5Y9.59%
EPS Q2Q%-50%
EPS Next Y-26.52%
EPS Next 2Y-1.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-20.88%
Revenue Next Year-10.99%
Revenue Next 2Y-0.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18%
EBIT growth 3Y5.13%
EBIT growth 5Y5.87%
EBIT Next Year35.43%
EBIT Next 3Y8.87%
EBIT Next 5YN/A
FCF growth 1Y1558.23%
FCF growth 3Y-26.31%
FCF growth 5Y1.54%
OCF growth 1Y170.35%
OCF growth 3Y-17.27%
OCF growth 5Y3.33%