SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - NYSE:SEM - US81619Q1058 - Common Stock
13.1 USD
-0.2 (-1.5%)
13.1 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to SEM. 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SEM had positive earnings in the past year.
In the past year SEM had a positive cash flow from operations.
In the past 5 years SEM has always been profitable.
Each year in the past 5 years SEM had a positive operating cash flow.
1.2 Ratios
SEM's Return On Assets of 3.72% is fine compared to the rest of the industry. SEM outperforms 69.00% of its industry peers.
SEM's Return On Equity of 12.53% is fine compared to the rest of the industry. SEM outperforms 76.00% 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 49.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SEM is significantly below the industry average of 9.40%.
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 74.00% of its industry peers.
In the last couple of years the Profit Margin of SEM has grown nicely.
The Operating Margin of SEM (5.17%) is comparable to the rest of the industry.
SEM's Operating Margin has declined in the last couple of years.
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
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 more shares outstanding
Compared to 5 years ago, SEM has less shares outstanding
Compared to 1 year ago, SEM has an improved debt to assets ratio.
2.2 Solvency
SEM has an Altman-Z score of 1.53. This is a bad value and indicates that SEM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.53, SEM is doing worse than 63.00% of the companies in the same industry.
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.
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
WACC10.35%
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 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 worse Quick ratio (1.09) than 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.
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.
The Revenue has been growing slightly by 7.48% in the past 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
SEM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.12% yearly.
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.
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
With a Price/Earnings ratio of 15.23, SEM is valued correctly.
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 (25.89), we can say SEM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.13, the valuation of SEM can be described as very reasonable.
SEM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SEM is cheaper than 88.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SEM to the average of the S&P500 Index (34.59), we can say SEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 10.13 |
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 79.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 87.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.33 | ||
| EV/EBITDA | 7.98 |
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)2.59
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, 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 2.57. 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
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%
13.1
-0.2 (-1.5%)
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 Cap1.62B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts80
Price Target18.36 (40.15%)
Short Float %3.41%
Short Ratio3.33
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 | 15.23 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.31 | ||
| P/FCF | 9.33 | ||
| P/OCF | 3.99 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)0.86
EY6.56%
EPS(NY)1.29
Fwd EY9.87%
FCF(TTM)1.4
FCFY10.71%
OCF(TTM)3.29
OCFY25.09%
SpS41.83
BVpS13.62
TBVpS-6.01
PEG (NY)N/A
PEG (5Y)2.59
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
WACC10.35%
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 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 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 15.23 and the Price/Book (PB) ratio is 0.96.
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%.