SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SEM - US81619Q1058 - Common Stock
13.65 USD
+0.65 (+5%)
13.65 USD
0 (0%)
Overall SEM gets a fundamental rating of 3 out of 10. We evaluated SEM against 100 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. SEM is valued correctly, but it does not seem to be growing.
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.
In the past 5 years SEM has always been profitable.
In the past 5 years SEM always reported a positive cash flow from operatings.
1.2 Ratios
SEM has a better Return On Assets (3.72%) than 69.00% of its industry peers.
With a decent Return On Equity value of 12.53%, SEM is doing good in the industry, outperforming 76.00% of the companies in the same industry.
SEM's Return On Invested Capital of 4.34% is in line compared to the rest of the industry. SEM outperforms 49.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SEM is significantly below the industry average of 9.38%.
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
SEM has a Profit Margin of 4.08%. This is in the better half of the industry: SEM outperforms 75.00% of its industry peers.
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 line with its industry, outperforming 60.00% of the companies in the same industry.
SEM's Operating Margin has declined in the last couple of years.
SEM's Gross Margin of 12.22% is on the low side compared to the rest of the industry. SEM is outperformed by 73.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SEM is destroying value.
SEM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SEM has been reduced compared to 5 years ago.
The debt/assets ratio for SEM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that SEM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SEM (1.53) is worse than 64.00% 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.
Looking at the Debt to FCF ratio, with a value of 10.18, SEM is in line with its industry, outperforming 45.00% of the companies in the same industry.
SEM has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
SEM has a worse Debt to Equity ratio (1.03) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.42
WACC10.21%
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 worse Current ratio (1.09) than 66.00% of its industry peers.
A Quick Ratio of 1.09 indicates that SEM should not have too much problems paying its short term obligations.
SEM has a Quick ratio of 1.09. This is in the lower half of the industry: SEM underperforms 61.00% of its industry peers.
| 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.
SEM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.88% yearly.
Looking at the last year, SEM shows a small growth in Revenue. The Revenue has grown by 7.48% in the last year.
SEM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.00% yearly.
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 decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.12% yearly.
Based on estimates for the next years, SEM will show a decrease in Revenue. The Revenue will decrease by -2.64% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 15.87 indicates a correct valuation of SEM.
80.00% of the companies in the same industry are more expensive than SEM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.45, SEM is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.56, which indicates a very decent valuation of SEM.
Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 87.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.46. SEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEM is valued a bit cheaper than 78.00% of the companies in the same industry.
87.00% 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 | 9.73 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
A cheap valuation may be justified as SEM's earnings are expected to decrease with -4.12% in the coming years.
PEG (NY)N/A
PEG (5Y)2.7
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.92%.
Compared to an average industry Dividend Yield of 2.57, SEM pays a better dividend. On top of this SEM pays more dividend than 89.00% of the companies listed in the same industry.
SEM's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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-11.48%
EPS Next 3Y-4.12%
13.65
+0.65 (+5%)
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-0.21%
Ins Owners10.41%
Ins Owner Change8.08%
Market Cap1.69B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts80
Price Target18.53 (35.75%)
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)3.85%
PT rev (3m)-1.82%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)4.09%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 10.56 | ||
| P/S | 0.33 | ||
| P/FCF | 9.73 | ||
| P/OCF | 4.15 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)0.86
EY6.3%
EPS(NY)1.29
Fwd EY9.47%
FCF(TTM)1.4
FCFY10.28%
OCF(TTM)3.29
OCFY24.08%
SpS41.83
BVpS13.62
TBVpS-6.01
PEG (NY)N/A
PEG (5Y)2.7
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 | 1.53 |
F-Score5
WACC10.21%
ROIC/WACC0.42
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 3 / 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 5 / 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 15.87 and the Price/Book (PB) ratio is 1.
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%.