SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SEM - US81619Q1058 - Common Stock
15.15 USD
-0.13 (-0.85%)
15.15 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SEM. SEM was compared to 103 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 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.
- Each year in the past 5 years SEM had a positive operating cash flow.
1.2 Ratios
- SEM has a Return On Assets of 3.72%. This is in the better half of the industry: SEM outperforms 67.96% of its industry peers.
- SEM has a Return On Equity of 12.53%. This is in the better half of the industry: SEM outperforms 76.70% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.34%, SEM is in line with its industry, outperforming 51.46% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SEM is significantly below the industry average of 9.21%.
- 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
- SEM has a Profit Margin of 4.08%. This is in the better half of the industry: SEM outperforms 75.73% of its industry peers.
- In the last couple of years the Profit Margin of SEM has grown nicely.
- SEM has a better Operating Margin (5.17%) than 64.08% of its industry peers.
- In the last couple of years the Operating Margin of SEM has declined.
- SEM's Gross Margin of 12.22% is on the low side compared to the rest of the industry. SEM is outperformed by 70.87% 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.
- Compared to 1 year ago, SEM has more shares outstanding
- SEM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SEM has an improved debt to assets ratio.
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 62.14% 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 of 10.18. This is comparable to the rest of the industry: SEM outperforms 45.63% 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.
- With a Debt to Equity ratio value of 1.03, SEM is not doing good in the industry: 62.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.43
WACC10.03%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that SEM should not have too much problems paying its short term obligations.
- The Current ratio of SEM (1.09) is worse than 63.11% 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.
- Looking at the Quick ratio, with a value of 1.09, SEM is in line with its industry, outperforming 42.72% of the companies in the same 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.
- 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.
- The Revenue has been decreasing by -1.00% on average over the past years.
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.83% yearly.
- SEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.85% yearly.
EPS Next Y-24.52%
EPS Next 2Y-10.42%
EPS Next 3Y-2.53%
EPS Next 5Y5.83%
Revenue Next Year-16.41%
Revenue Next 2Y-6.62%
Revenue Next 3Y-2.85%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 17.62.
- SEM's Price/Earnings ratio is a bit cheaper when compared to the industry. SEM is cheaper than 78.64% of the companies in the same industry.
- SEM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- SEM is valuated reasonably with a Price/Forward Earnings ratio of 11.44.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 86.41% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SEM to the average of the S&P500 Index (25.98), we can say SEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEM indicates a somewhat cheap valuation: SEM is cheaper than 76.70% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, SEM is valued cheaper than 84.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.78 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
- SEM has a very decent profitability rating, which may justify a higher PE ratio.
- SEM's earnings are expected to decrease with -2.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3
EPS Next 2Y-10.42%
EPS Next 3Y-2.53%
5. Dividend
5.1 Amount
- SEM has a Yearly Dividend Yield of 1.64%.
- SEM's Dividend Yield is rather good when compared to the industry average which is at 0.45. SEM pays more dividend than 89.32% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, SEM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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-10.42%
EPS Next 3Y-2.53%
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.
What is the valuation status for SEM stock?
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 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 17.62 and the Price/Book (PB) ratio is 1.11.
Can you provide the financial health for SEM stock?
The financial health rating of SELECT MEDICAL HOLDINGS CORP (SEM) is 3 / 10.