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SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis

NYSE:SEM - New York Stock Exchange, Inc. - US81619Q1058 - Common Stock

19.33  +0.26 (+1.36%)

After market: 19.33 0 (0%)

Fundamental Rating

5

SEM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 industry peers in the Health Care Providers & Services industry. SEM scores excellent on profitability, but there are some minor concerns on its financial health. SEM is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

SEM had positive earnings in the past year.
SEM had a positive operating cash flow in the past year.
SEM had positive earnings in each of the past 5 years.
In the past 5 years SEM always reported a positive cash flow from operatings.
SEM Yearly Net Income VS EBIT VS OCF VS FCFSEM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

1.2 Ratios

With a decent Return On Assets value of 4.49%, SEM is doing good in the industry, outperforming 76.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.76%, SEM belongs to the top of the industry, outperforming 89.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.13%, SEM belongs to the top of the industry, outperforming 84.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SEM is in line with the industry average of 8.27%.
The last Return On Invested Capital (9.13%) for SEM is above the 3 year average (6.79%), which is a sign of increasing profitability.
Industry RankSector 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%
SEM Yearly ROA, ROE, ROICSEM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

With a decent Profit Margin value of 4.10%, SEM is doing good in the industry, outperforming 79.44% of the companies in the same industry.
SEM's Profit Margin has improved in the last couple of years.
SEM's Operating Margin of 9.15% is amongst the best of the industry. SEM outperforms 83.18% of its industry peers.
In the last couple of years the Operating Margin of SEM has remained more or less at the same level.
SEM has a Gross Margin of 14.83%. This is in the lower half of the industry: SEM underperforms 71.03% of its industry peers.
SEM's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SEM Yearly Profit, Operating, Gross MarginsSEM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

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4

2. Health

2.1 Basic Checks

SEM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SEM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SEM has less shares outstanding
The debt/assets ratio for SEM has been reduced compared to a year ago.
SEM Yearly Shares OutstandingSEM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
SEM Yearly Total Debt VS Total AssetsSEM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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.
The Altman-Z score of SEM (1.88) is comparable to the rest of the industry.
The Debt to FCF ratio of SEM is 8.95, which is on the high side as it means it would take SEM, 8.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SEM (8.95) is better than 63.55% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that SEM has dependencies on debt financing.
The Debt to Equity ratio of SEM (1.63) is worse than 72.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.63
Debt/FCF 8.95
Altman-Z 1.88
ROIC/WACC1.14
WACC8%
SEM Yearly LT Debt VS Equity VS FCFSEM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.13 indicates that SEM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, SEM is doing worse than 69.16% of the companies in the same industry.
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 has a Quick ratio of 1.13. This is in the lower half of the industry: SEM underperforms 63.55% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.13
SEM Yearly Current Assets VS Current LiabilitesSEM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.68% over the past year.
The Earnings Per Share has been growing by 14.08% on average over the past years. This is quite good.
Looking at the last year, SEM shows a small growth in Revenue. The Revenue has grown by 6.13% in the last year.
The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)15.68%
EPS 3Y1.91%
EPS 5Y14.08%
EPS Q2Q%-6.52%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y6.4%
Revenue growth 5Y5.57%
Sales Q2Q%5.73%

3.2 Future

The Earnings Per Share is expected to grow by 4.01% on average over the next years.
Based on estimates for the next years, SEM will show a decrease in Revenue. The Revenue will decrease by -1.19% on average per year.
EPS Next Y3.03%
EPS Next 2Y-9.38%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue Next Year-2.41%
Revenue Next 2Y-6.8%
Revenue Next 3Y-1.19%
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.
SEM Yearly Revenue VS EstimatesSEM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
SEM Yearly EPS VS EstimatesSEM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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7

4. Valuation

4.1 Price/Earnings Ratio

SEM is valuated reasonably with a Price/Earnings ratio of 9.03.
Compared to the rest of the industry, the Price/Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 94.39% of the companies listed in the same industry.
SEM is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.83, which indicates a very decent valuation of SEM.
Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 85.05% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SEM to the average of the S&P500 Index (24.44), we can say SEM is valued rather cheaply.
Industry RankSector Rank
PE 9.03
Fwd PE 11.83
SEM Price Earnings VS Forward Price EarningsSEM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 94.39% of the companies listed in the same industry.
95.33% of the companies in the same industry are more expensive than SEM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.07
EV/EBITDA 5.34
SEM Per share dataSEM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SEM does not grow enough to justify the current Price/Earnings ratio.
SEM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)0.64
EPS Next 2Y-9.38%
EPS Next 3Y4.01%

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6

5. Dividend

5.1 Amount

SEM has a Yearly Dividend Yield of 2.61%.
The stock price of SEM dropped by -39.10% 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.
SEM's Dividend Yield is rather good when compared to the industry average which is at 2.87. SEM pays more dividend than 92.52% of the companies in the same industry.
SEM's Dividend Yield is comparable with the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 2.61%

5.2 History

The dividend of SEM is nicely growing with an annual growth rate of 38.03%!
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)38.03%
Div Incr Years0
Div Non Decr Years3
SEM Yearly Dividends per shareSEM Yearly Dividends per shareYearly Dividends per share 2015 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

SEM pays out 17.97% of its income as dividend. This is a sustainable payout ratio.
SEM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.97%
EPS Next 2Y-9.38%
EPS Next 3Y4.01%
SEM Yearly Income VS Free CF VS DividendSEM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
SEM Dividend Payout.SEM Dividend Payout, showing the Payout Ratio.SEM Dividend Payout.PayoutRetained Earnings

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SELECT MEDICAL HOLDINGS CORP

NYSE:SEM (1/21/2025, 6:40:00 PM)

After market: 19.33 0 (0%)

19.33

+0.26 (+1.36%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-31 2024-10-31/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners78.38%
Inst Owner Change-0.01%
Ins Owners9.92%
Ins Owner Change-4.6%
Market Cap2.49B
Analysts77.78
Price Target34.94 (80.76%)
Short Float %3.08%
Short Ratio2.74
Dividend
Industry RankSector Rank
Dividend Yield 2.61%
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)-11.61%
PT rev (3m)-21.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0%
EPS NY rev (3m)11.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-7.71%
Valuation
Industry RankSector Rank
PE 9.03
Fwd PE 11.83
P/S 0.28
P/FCF 7.07
P/OCF 4.36
P/B 1.3
P/tB N/A
EV/EBITDA 5.34
EPS(TTM)2.14
EY11.07%
EPS(NY)1.63
Fwd EY8.45%
FCF(TTM)2.73
FCFY14.14%
OCF(TTM)4.43
OCFY22.94%
SpS67.89
BVpS14.85
TBVpS-15.14
PEG (NY)2.98
PEG (5Y)0.64
Profitability
Industry RankSector 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 RankSector 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%
ROIC/WACC1.14
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)15.68%
EPS 3Y1.91%
EPS 5Y14.08%
EPS Q2Q%-6.52%
EPS Next Y3.03%
EPS Next 2Y-9.38%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue 1Y (TTM)6.13%
Revenue growth 3Y6.4%
Revenue growth 5Y5.57%
Sales Q2Q%5.73%
Revenue Next Year-2.41%
Revenue Next 2Y-6.8%
Revenue Next 3Y-1.19%
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%