SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - NYSE:SEM - US81619Q1058 - Common Stock
13.33 USD
+0.01 (+0.08%)
13.33 USD
0 (0%)
Taking everything into account, SEM scores 4 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
SEM had positive earnings in the past year.
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 (3.69%) than 69.00% of its industry peers.
SEM's Return On Equity of 12.70% is fine compared to the rest of the industry. SEM outperforms 77.00% of its industry peers.
The Return On Invested Capital of SEM (4.27%) 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 9.40%.
The last Return On Invested Capital (4.27%) for SEM is above the 3 year average (3.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 12.7% | ||
| ROIC | 4.27% |
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 74.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SEM has grown nicely.
SEM's Operating Margin of 5.17% is in line compared to the rest of the industry. SEM outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of SEM has declined.
The Gross Margin of SEM (12.22%) is worse than 72.00% of its industry peers.
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.
Compared to 1 year ago, SEM has an improved debt to assets ratio.
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 65.00% of its industry peers.
SEM has a debt to FCF ratio of 10.30. This is a negative value and a sign of low solvency as SEM would need 10.30 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.30, SEM perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that SEM has dependencies on debt financing.
With a Debt to Equity ratio value of 1.11, SEM is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.3 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.41
WACC10.31%
2.3 Liquidity
A Current Ratio of 1.15 indicates that SEM should not have too much problems paying its short term obligations.
SEM's Current ratio of 1.15 is on the low side compared to the rest of the industry. SEM is outperformed by 63.00% of its industry peers.
A Quick Ratio of 1.15 indicates that SEM should not have too much problems paying its short term obligations.
SEM has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
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.
SEM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.48%.
The Revenue has been decreasing by -1.00% on average over the past years.
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
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
The Price/Earnings ratio is 15.50, which indicates a correct valuation of SEM.
Compared to the rest of the industry, the Price/Earnings ratio of SEM indicates a somewhat cheap valuation: SEM is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. SEM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.31, the valuation of SEM can be described as reasonable.
89.00% of the companies in the same industry are more expensive than SEM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SEM to the average of the S&P500 Index (32.73), we can say SEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than SEM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 88.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
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)2.64
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 2.55. SEM pays more dividend than 89.00% of the companies in the same industry.
SEM's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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 22.80% of its income as dividend. This is a sustainable payout ratio.
DP22.8%
EPS Next 2Y-11.48%
EPS Next 3Y-4.12%
13.33
+0.01 (+0.08%)
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-1.51%
Ins Owners10.41%
Ins Owner Change4.92%
Market Cap1.65B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts80
Price Target18.36 (37.73%)
Short Float %3.41%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP22.8%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.08%
Min EPS beat(2)-4.04%
Max EPS beat(2)30.21%
EPS beat(4)1
Avg EPS beat(4)-33.52%
Min EPS beat(4)-158.51%
Max EPS beat(4)30.21%
EPS beat(8)4
Avg EPS beat(8)-11.86%
EPS beat(12)6
Avg EPS beat(12)-11.29%
EPS beat(16)9
Avg EPS beat(16)-6.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-1.28%
Revenue beat(4)1
Avg Revenue beat(4)-3.89%
Min Revenue beat(4)-11.07%
Max Revenue beat(4)0.41%
Revenue beat(8)4
Avg Revenue beat(8)-1.53%
Revenue beat(12)6
Avg Revenue beat(12)-1.06%
Revenue beat(16)10
Avg Revenue beat(16)5.91%
PT rev (1m)3.85%
PT rev (3m)-1.82%
EPS NQ rev (1m)11.76%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)4.09%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.32 | ||
| P/FCF | 9.08 | ||
| P/OCF | 4 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)0.86
EY6.45%
EPS(NY)1.29
Fwd EY9.7%
FCF(TTM)1.47
FCFY11.02%
OCF(TTM)3.33
OCFY25%
SpS41.83
BVpS13.44
TBVpS-6.18
PEG (NY)N/A
PEG (5Y)2.64
Graham Number16.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 12.7% | ||
| ROCE | 5.59% | ||
| ROIC | 4.27% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 8.82% | ||
| OM | 5.17% | ||
| PM (TTM) | 4.08% | ||
| GM | 12.22% | ||
| FCFM | 3.51% |
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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.3 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 139.62% | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 1.52 | ||
| Cash Conversion | 95.25% | ||
| Profit Quality | 86.01% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 1.53 |
F-Score5
WACC10.31%
ROIC/WACC0.41
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 1Y2.6%
FCF growth 3Y10.24%
FCF growth 5Y0.52%
OCF growth 1Y5.13%
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 15.5 and the Price/Book (PB) ratio is 0.99.
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 22.8%.