SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
NYSE:SEM • US81619Q1058
14.97 USD
+0.05 (+0.34%)
At close: Feb 27, 2026
14.9684 USD
0 (-0.01%)
After Hours: 2/27/2026, 8:04:00 PM
Taking everything into account, SEM scores 5 out of 10 in our fundamental rating. SEM was compared to 101 industry peers in the Health Care Providers & Services industry. While SEM is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SEM.
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.
- In the past 5 years SEM has always been profitable.
- SEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.44%, SEM is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
- SEM's Return On Equity of 8.38% is fine compared to the rest of the industry. SEM outperforms 68.32% of its industry peers.
- SEM has a Return On Invested Capital (5.27%) which is comparable to the rest of the industry.
- SEM had an Average Return On Invested Capital over the past 3 years of 4.28%. This is below the industry average of 9.08%.
- The last Return On Invested Capital (5.27%) for SEM is above the 3 year average (4.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 8.38% | ||
| ROIC | 5.27% |
ROA(3y)3.12%
ROA(5y)3.34%
ROE(3y)13.23%
ROE(5y)17.79%
ROIC(3y)4.28%
ROIC(5y)4.69%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.62%, SEM is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
- SEM's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 6.17%, SEM is doing good in the industry, outperforming 69.31% of the companies in the same industry.
- SEM's Operating Margin has declined in the last couple of years.
- SEM has a Gross Margin of 11.54%. This is in the lower half of the industry: SEM underperforms 71.29% of its industry peers.
- In the last couple of years the Gross Margin of SEM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.17% | ||
| PM (TTM) | 2.62% | ||
| GM | 11.54% |
OM growth 3Y25.21%
OM growth 5Y-6.51%
PM growth 3Y-8.86%
PM growth 5Y-10.34%
GM growth 3Y9.83%
GM growth 5Y-4.91%
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 less shares outstanding
- SEM has less shares outstanding than it did 5 years ago.
- SEM has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.60, we must say that SEM is in the distress zone and has some risk of bankruptcy.
- SEM has a Altman-Z score (1.60) which is comparable to the rest of the industry.
- The Debt to FCF ratio of SEM is 15.74, which is on the high side as it means it would take SEM, 15.74 years of fcf income to pay off all of its debts.
- SEM has a Debt to FCF ratio (15.74) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that SEM has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.07, SEM is not doing good in the industry: 61.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.74 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.65
WACC8.16%
2.3 Liquidity
- SEM has a Current Ratio of 1.04. 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 1.04. This is in the lower half of the industry: SEM underperforms 66.34% of its industry peers.
- SEM has a Quick Ratio of 1.04. 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 (1.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- SEM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.30%.
- SEM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.36% yearly.
- The Revenue has been growing slightly by 5.12% in the past year.
- SEM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.29% yearly.
EPS 1Y (TTM)-30.3%
EPS 3Y-2.22%
EPS 5Y-9.36%
EPS Q2Q%223.08%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y5.76%
Revenue growth 5Y-0.29%
Sales Q2Q%6.41%
3.2 Future
- Based on estimates for the next years, SEM will show a very strong growth in Earnings Per Share. The EPS will grow by 21.64% on average per year.
- The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y15.13%
EPS Next 2Y15.26%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue Next Year4.33%
Revenue Next 2Y4.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- SEM is valuated correctly with a Price/Earnings ratio of 13.02.
- Compared to the rest of the industry, the Price/Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 86.14% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.07. SEM is valued rather cheaply when compared to this.
- SEM is valuated reasonably with a Price/Forward Earnings ratio of 11.31.
- Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 87.13% of the companies are valued more expensively.
- SEM is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 11.31 |
4.2 Price Multiples
- SEM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SEM is cheaper than 82.18% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SEM indicates a somewhat cheap valuation: SEM is cheaper than 75.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
- SEM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SEM's earnings are expected to grow with 21.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y15.26%
EPS Next 3Y21.64%
5. Dividend
5.1 Amount
- SEM has a Yearly Dividend Yield of 1.68%.
- Compared to an average industry Dividend Yield of 0.48, SEM pays a better dividend. On top of this SEM pays more dividend than 90.10% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SEM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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
- 21.99% of the earnings are spent on dividend by SEM. This is a low number and sustainable payout ratio.
DP21.99%
EPS Next 2Y15.26%
EPS Next 3Y21.64%
14.97
+0.05 (+0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners82.91%
Inst Owner Change-3.76%
Ins Owners11.06%
Ins Owner Change0.41%
Market Cap1.85B
Revenue(TTM)5.45B
Net Income(TTM)142.92M
Analysts77.78
Price Target17.88 (19.44%)
Short Float %3.94%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP21.99%
Div Incr Years0
Div Non Decr Years3
Ex-Date03-02 2026-03-02 (0.0625)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.41%
Min EPS beat(2)-31%
Max EPS beat(2)49.82%
EPS beat(4)2
Avg EPS beat(4)11.24%
Min EPS beat(4)-31%
Max EPS beat(4)49.82%
EPS beat(8)3
Avg EPS beat(8)-11.03%
EPS beat(12)7
Avg EPS beat(12)-1.92%
EPS beat(16)8
Avg EPS beat(16)-6.67%
Revenue beat(2)2
Avg Revenue beat(2)1.44%
Min Revenue beat(2)1.43%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)1.45%
Revenue beat(8)4
Avg Revenue beat(8)-1.37%
Revenue beat(12)8
Avg Revenue beat(12)-0.69%
Revenue beat(16)10
Avg Revenue beat(16)5.67%
PT rev (1m)-3.49%
PT rev (3m)-3.49%
EPS NQ rev (1m)4.58%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)0%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 11.31 | ||
| P/S | 0.34 | ||
| P/FCF | 15.81 | ||
| P/OCF | 5.35 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.67 |
EPS(TTM)1.15
EY7.68%
EPS(NY)1.32
Fwd EY8.84%
FCF(TTM)0.95
FCFY6.33%
OCF(TTM)2.8
OCFY18.69%
SpS44.04
BVpS13.77
TBVpS-6.11
PEG (NY)0.86
PEG (5Y)N/A
Graham Number18.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 8.38% | ||
| ROCE | 6.91% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 10.74% | ||
| OM | 6.17% | ||
| PM (TTM) | 2.62% | ||
| GM | 11.54% | ||
| FCFM | 2.15% |
ROA(3y)3.12%
ROA(5y)3.34%
ROE(3y)13.23%
ROE(5y)17.79%
ROIC(3y)4.28%
ROIC(5y)4.69%
ROICexc(3y)4.32%
ROICexc(5y)4.74%
ROICexgc(3y)8.45%
ROICexgc(5y)10.81%
ROCE(3y)5.62%
ROCE(5y)6.16%
ROICexgc growth 3Y36.24%
ROICexgc growth 5Y-11.26%
ROICexc growth 3Y45.51%
ROICexc growth 5Y-3.96%
OM growth 3Y25.21%
OM growth 5Y-6.51%
PM growth 3Y-8.86%
PM growth 5Y-10.34%
GM growth 3Y9.83%
GM growth 5Y-4.91%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.74 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 163.38% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 2.79 | ||
| Cash Conversion | 72.71% | ||
| Profit Quality | 82.03% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.6 |
F-Score5
WACC8.16%
ROIC/WACC0.65
Cap/Depr(3y)127.38%
Cap/Depr(5y)112.75%
Cap/Sales(3y)4.41%
Cap/Sales(5y)4.06%
Profit Quality(3y)122.64%
Profit Quality(5y)96.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-30.3%
EPS 3Y-2.22%
EPS 5Y-9.36%
EPS Q2Q%223.08%
EPS Next Y15.13%
EPS Next 2Y15.26%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue 1Y (TTM)5.12%
Revenue growth 3Y5.76%
Revenue growth 5Y-0.29%
Sales Q2Q%6.41%
Revenue Next Year4.33%
Revenue Next 2Y4.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y25.29%
EBIT growth 3Y32.43%
EBIT growth 5Y-6.78%
EBIT Next Year43.55%
EBIT Next 3Y18.69%
EBIT Next 5YN/A
FCF growth 1Y-60.35%
FCF growth 3Y7.47%
FCF growth 5Y-33.2%
OCF growth 1Y-33.1%
OCF growth 3Y6.75%
OCF growth 5Y-19.55%
SELECT MEDICAL HOLDINGS CORP / SEM FAQ
Can you provide the ChartMill fundamental rating for SELECT MEDICAL HOLDINGS CORP?
ChartMill assigns a fundamental rating of 5 / 10 to SEM.
What is the valuation status for SEM stock?
ChartMill assigns a valuation rating of 7 / 10 to SELECT MEDICAL HOLDINGS CORP (SEM). This can be considered as Undervalued.
Can you provide the profitability details for SELECT MEDICAL HOLDINGS CORP?
SELECT MEDICAL HOLDINGS CORP (SEM) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SELECT MEDICAL HOLDINGS CORP (SEM) stock?
The Price/Earnings (PE) ratio for SELECT MEDICAL HOLDINGS CORP (SEM) is 13.02 and the Price/Book (PB) ratio is 1.09.
Can you provide the financial health for SEM stock?
The financial health rating of SELECT MEDICAL HOLDINGS CORP (SEM) is 3 / 10.