SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - NYSE:SEM - US81619Q1058 - Common Stock
13 USD
+0.19 (+1.48%)
13 USD
0 (0%)
Taking everything into account, SEM scores 3 out of 10 in our fundamental rating. SEM was compared to 100 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
The Return On Assets of SEM (3.72%) is better 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.
Looking at the Return On Invested Capital, with a value of 4.34%, SEM is in line with its industry, outperforming 49.00% 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 9.38%.
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
Looking at the Profit Margin, with a value of 4.08%, SEM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
SEM's Profit Margin has improved in the last couple of years.
The Operating Margin of SEM (5.17%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SEM has declined.
The Gross Margin of SEM (12.22%) is worse than 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.
Compared to 5 years ago, SEM has less shares outstanding
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.
SEM has a Altman-Z score of 1.53. This is in the lower half of the industry: SEM underperforms 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.
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.
SEM has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: SEM underperforms 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
WACC10.28%
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.
Looking at the Current ratio, with a value of 1.09, SEM is doing worse than 66.00% of the companies in the same industry.
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 doing worse than 61.00% 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.
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.
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
The Earnings Per Share is expected to decrease by -4.12% 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 -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.
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
A Price/Earnings ratio of 15.12 indicates a correct valuation of SEM.
Based on the Price/Earnings ratio, SEM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SEM to the average of the S&P500 Index (25.07), we can say SEM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 10.06, the valuation of SEM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 89.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, SEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEM is valued a bit cheaper than the industry average as 79.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SEM is valued cheaper than 86.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.26 | ||
| EV/EBITDA | 7.89 |
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)2.57
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.88%.
SEM's Dividend Yield is rather good when compared to the industry average which is at 2.57. SEM pays more dividend than 89.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, SEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
+0.19 (+1.48%)
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 Cap1.61B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts80
Price Target18.36 (41.23%)
Short Float %3.34%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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 | 15.12 | ||
| Fwd PE | 10.06 | ||
| P/S | 0.31 | ||
| P/FCF | 9.26 | ||
| P/OCF | 3.95 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)0.86
EY6.62%
EPS(NY)1.29
Fwd EY9.94%
FCF(TTM)1.4
FCFY10.8%
OCF(TTM)3.29
OCFY25.29%
SpS41.83
BVpS13.62
TBVpS-6.01
PEG (NY)N/A
PEG (5Y)2.57
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
WACC10.28%
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 15.12 and the Price/Book (PB) ratio is 0.95.
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%.