SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
NYSE:SEM • US81619Q1058
15.01 USD
-1.07 (-6.65%)
At close: Feb 20, 2026
15.01 USD
0 (0%)
After Hours: 2/20/2026, 8:04:42 PM
SEM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of SEM while its profitability can be described as average. SEM has a bad growth rate and is valued cheaply.
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.
- SEM had positive earnings in 4 of the past 5 years.
- SEM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of SEM (3.72%) is better than 69.31% of its industry peers.
- SEM has a better Return On Equity (12.53%) than 78.22% of its industry peers.
- SEM has a Return On Invested Capital (4.34%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for SEM is significantly below the industry average of 9.04%.
- 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
- With a decent Profit Margin value of 4.08%, SEM is doing good in the industry, outperforming 76.24% of the companies in the same industry.
- SEM's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 5.17%, SEM is doing good in the industry, outperforming 64.36% of the companies in the same industry.
- 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 71.29% 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.
- There is no outstanding debt for SEM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- Based on the Altman-Z score of 1.57, we must say that SEM is in the distress zone and has some risk of bankruptcy.
- SEM has a Altman-Z score of 1.57. This is comparable to the rest of the industry: SEM outperforms 42.57% 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.
- Looking at the Debt to FCF ratio, with a value of 10.18, SEM is in line with its industry, outperforming 43.56% 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 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.45
WACC9.73%
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.
- The Current ratio of SEM (1.09) is worse than 62.38% 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 42.57% 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 -30.30% in the last year.
- SEM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.36% yearly.
EPS 1Y (TTM)-30.3%
EPS 3Y-2.22%
EPS 5Y-9.36%
EPS Q2Q%223.08%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.4%
3.2 Future
- The Earnings Per Share is expected to grow by 21.64% on average over the next years. This is a very strong growth
- Based on estimates for the next years, SEM will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y15.13%
EPS Next 2Y15.26%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue Next Year4.33%
Revenue Next 2Y4.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.05, which indicates a correct valuation of SEM.
- Based on the Price/Earnings ratio, SEM is valued cheaply inside the industry as 86.14% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SEM to the average of the S&P500 Index (26.99), we can say SEM is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.34, the valuation of SEM can be described as reasonable.
- Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 86.14% of the companies are valued more expensively.
- SEM is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SEM is valued a bit cheaper than the industry average as 75.25% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 80.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as SEM's earnings are expected to grow with 21.64% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y15.26%
EPS Next 3Y21.64%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.55%, SEM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.49, SEM pays a better dividend. On top of this SEM pays more dividend than 88.12% of the companies listed 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 | 1.55% |
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
- SEM pays out 18.80% of its income as dividend. This is a sustainable payout ratio.
DP18.8%
EPS Next 2Y15.26%
EPS Next 3Y21.64%
15.01
-1.07 (-6.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners82.91%
Inst Owner Change-3.76%
Ins Owners11.06%
Ins Owner Change0.26%
Market Cap1.86B
Revenue(TTM)N/A
Net Income(TTM)211.72M
Analysts77.78
Price Target18.53 (23.45%)
Short Float %3.94%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP18.8%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 11.34 | ||
| P/S | 0.36 | ||
| P/FCF | 10.68 | ||
| P/OCF | 4.56 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.54 |
EPS(TTM)1.15
EY7.66%
EPS(NY)1.32
Fwd EY8.82%
FCF(TTM)1.41
FCFY9.36%
OCF(TTM)3.29
OCFY21.93%
SpS41.89
BVpS13.64
TBVpS-6.02
PEG (NY)0.86
PEG (5Y)N/A
Graham Number18.79
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 | 1.57 |
F-Score5
WACC9.73%
ROIC/WACC0.45
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)-30.3%
EPS 3Y-2.22%
EPS 5Y-9.36%
EPS Q2Q%223.08%
EPS Next Y15.13%
EPS Next 2Y15.26%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.4%
Revenue Next Year4.33%
Revenue Next 2Y4.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y-27.83%
EBIT growth 5Y-10.68%
EBIT Next Year-15.98%
EBIT Next 3Y-1.14%
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.
What is the valuation status for SEM stock?
ChartMill assigns a valuation rating of 8 / 10 to SELECT MEDICAL HOLDINGS CORP (SEM). This can be considered as Undervalued.
Can you provide the profitability details for SELECT MEDICAL HOLDINGS CORP?
SELECT MEDICAL HOLDINGS CORP (SEM) has a profitability rating of 5 / 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 13.05 and the Price/Book (PB) ratio is 1.1.
Can you provide the financial health for SEM stock?
The financial health rating of SELECT MEDICAL HOLDINGS CORP (SEM) is 2 / 10.