SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SEM - US81619Q1058 - Common Stock
15.57 USD
+1.56 (+11.13%)
15.58 USD
+0.01 (+0.06%)
Overall SEM gets a fundamental rating of 4 out of 10. We evaluated SEM against 101 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.
SEM had a positive operating cash flow in the past year.
SEM had positive earnings in each of the past 5 years.
SEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SEM has a better Return On Assets (3.72%) than 69.31% of its industry peers.
The Return On Equity of SEM (12.53%) is better than 76.24% 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 49.51% of the companies in the same industry.
SEM had an Average Return On Invested Capital over the past 3 years of 3.10%. This is significantly below the industry average of 9.27%.
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 75.25% of the companies in the same industry.
SEM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.17%, SEM is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
SEM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.22%, SEM is not doing good in the industry: 72.28% of the companies in the same industry are doing better.
SEM's Gross Margin has declined in the last couple of years.
| 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.
SEM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that SEM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SEM (1.55) is worse than 63.37% of its industry peers.
The Debt to FCF ratio of SEM is 10.18, which is on the high side as it means it would take SEM, 10.18 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 1.03, SEM is doing worse than 62.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.43
WACC10.03%
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.
SEM has a Current ratio of 1.09. This is in the lower half of the industry: SEM underperforms 65.35% of its industry peers.
A Quick Ratio of 1.09 indicates that SEM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, SEM is in line with its industry, outperforming 40.59% 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.
Measured over the past 5 years, SEM shows a small growth in Earnings Per Share. The EPS has been growing by 5.88% on average per year.
SEM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.48%.
Measured over the past years, SEM shows a decrease in Revenue. The Revenue has been decreasing by -1.00% on average per year.
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
Based on estimates for the next years, SEM will show a decrease in Earnings Per Share. The EPS will decrease by -4.12% on average per year.
The Revenue is expected to decrease by -2.64% on average over the next years.
EPS Next Y-27.26%
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
EPS Next 5YN/A
Revenue Next Year-16.48%
Revenue Next 2Y-6.45%
Revenue Next 3Y-2.64%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.10, SEM is valued on the expensive side.
Based on the Price/Earnings ratio, SEM is valued cheaper than 80.20% of the companies in the same industry.
SEM is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.04, the valuation of SEM can be described as correct.
Based on the Price/Forward Earnings ratio, SEM is valued cheaper than 87.13% 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 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 12.04 |
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 78.22% of the companies listed in the same industry.
85.15% of the companies in the same industry are more expensive than SEM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 8.25 |
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 -4.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.08
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, SEM has a reasonable but not impressive dividend return.
SEM's Dividend Yield is rather good when compared to the industry average which is at 2.60. SEM pays more dividend than 89.11% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, SEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
18.80% of the earnings are spent on dividend by SEM. This is a low number and sustainable payout ratio.
DP18.8%
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
15.57
+1.56 (+11.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.75%
Inst Owner Change-0.2%
Ins Owners10.41%
Ins Owner Change4.92%
Market Cap1.93B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts80
Price Target18.53 (19.01%)
Short Float %3.34%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)4.81%
PT rev (3m)1.87%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)2.74%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 12.04 | ||
| P/S | 0.37 | ||
| P/FCF | 11.09 | ||
| P/OCF | 4.74 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.25 |
EPS(TTM)0.86
EY5.52%
EPS(NY)1.29
Fwd EY8.3%
FCF(TTM)1.4
FCFY9.01%
OCF(TTM)3.29
OCFY21.11%
SpS41.83
BVpS13.62
TBVpS-6.01
PEG (NY)N/A
PEG (5Y)3.08
Graham Number16.24
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 | 1.55 |
F-Score5
WACC10.03%
ROIC/WACC0.43
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-27.26%
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
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-16.48%
Revenue Next 2Y-6.45%
Revenue Next 3Y-2.64%
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y-27.83%
EBIT growth 5Y-10.68%
EBIT Next Year-15.89%
EBIT Next 3Y-0.87%
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 18.1 and the Price/Book (PB) ratio is 1.14.
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%.