SELECT MEDICAL HOLDINGS CORP (SEM) Fundamental Analysis & Valuation
NYSE:SEM • US81619Q1058
Current stock price
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This SEM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SEM Profitability Analysis
1.1 Basic Checks
- In the past year SEM was profitable.
- In the past year SEM had a positive cash flow from operations.
- In the past 5 years SEM has always been profitable.
- SEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SEM has a Return On Assets (2.44%) which is in line with its industry peers.
- The Return On Equity of SEM (8.38%) is better than 64.00% of its industry peers.
- SEM has a Return On Invested Capital (5.27%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for SEM is below the industry average of 8.51%.
- The last Return On Invested Capital (5.27%) for SEM is above the 3 year average (4.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 8.38% | ||
| ROIC | 5.27% |
ROA(3y)3.12%
ROA(5y)3.34%
ROE(3y)13.23%
ROE(5y)17.79%
ROIC(3y)4.28%
ROIC(5y)4.69%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.62%, SEM is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of SEM has declined.
- SEM's Operating Margin of 6.17% is fine compared to the rest of the industry. SEM outperforms 70.00% of its industry peers.
- SEM's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 11.54%, SEM is doing worse than 71.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of SEM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.17% | ||
| PM (TTM) | 2.62% | ||
| GM | 11.54% |
OM growth 3Y25.21%
OM growth 5Y-6.51%
PM growth 3Y-8.86%
PM growth 5Y-10.34%
GM growth 3Y9.83%
GM growth 5Y-4.91%
2. SEM Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SEM is destroying value.
- The number of shares outstanding for SEM has been reduced compared to 1 year ago.
- Compared to 5 years ago, SEM has less shares outstanding
- SEM has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.62, we must say that SEM is in the distress zone and has some risk of bankruptcy.
- SEM has a Altman-Z score of 1.62. This is comparable to the rest of the industry: SEM outperforms 41.00% of its industry peers.
- The Debt to FCF ratio of SEM is 15.74, which is on the high side as it means it would take SEM, 15.74 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 15.74, SEM is doing worse than 63.00% of the companies in the same industry.
- SEM has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.07, SEM is doing worse than 63.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.74 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.6
WACC8.78%
2.3 Liquidity
- A Current Ratio of 1.04 indicates that SEM should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.04, SEM is not doing good in the industry: 69.00% of the companies in the same industry are doing better.
- SEM has a Quick Ratio of 1.04. 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 Quick ratio of 1.04. This is in the lower half of the industry: SEM underperforms 63.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. SEM Growth Analysis
3.1 Past
- The earnings per share for SEM have decreased strongly by -30.30% in the last year.
- Measured over the past years, SEM shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.36% on average per year.
- SEM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.12%.
- SEM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.29% yearly.
EPS 1Y (TTM)-30.3%
EPS 3Y-2.22%
EPS 5Y-9.36%
EPS Q2Q%223.08%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y5.76%
Revenue growth 5Y-0.29%
Sales Q2Q%6.41%
3.2 Future
- The Earnings Per Share is expected to grow by 3.71% on average over the next years.
- SEM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.75% yearly.
EPS Next Y11.25%
EPS Next 2Y9.53%
EPS Next 3Y3.71%
EPS Next 5YN/A
Revenue Next Year5.04%
Revenue Next 2Y4.91%
Revenue Next 3Y4.75%
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 accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. SEM Valuation Analysis
4.1 Price/Earnings Ratio
- SEM is valuated correctly with a Price/Earnings ratio of 14.29.
- SEM's Price/Earnings ratio is rather cheap when compared to the industry. SEM is cheaper than 84.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SEM to the average of the S&P500 Index (27.47), we can say SEM is valued slightly cheaper.
- A Price/Forward Earnings ratio of 12.84 indicates a correct valuation of SEM.
- Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 83.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of SEM to the average of the S&P500 Index (22.62), we can say SEM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.84 |
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 80.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, SEM is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.38 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y9.53%
EPS Next 3Y3.71%
5. SEM Dividend Analysis
5.1 Amount
- SEM has a Yearly Dividend Yield of 1.53%.
- SEM's Dividend Yield is rather good when compared to the industry average which is at 0.47. SEM pays more dividend than 88.00% of the companies 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 | 1.53% |
5.2 History
- SEM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- SEM pays out 21.99% of its income as dividend. This is a sustainable payout ratio.
DP21.99%
EPS Next 2Y9.53%
EPS Next 3Y3.71%
SEM Fundamentals: All Metrics, Ratios and Statistics
16.43
0 (0%)
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)04-30 2026-04-30/amc
Inst Owners83.08%
Inst Owner Change-0.05%
Ins Owners10.75%
Ins Owner Change0.41%
Market Cap2.04B
Revenue(TTM)5.45B
Net Income(TTM)142.92M
Analysts71.11
Price Target17.03 (3.65%)
Short Float %2.63%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP21.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-02 2026-03-02 (0.0625)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.41%
Min EPS beat(2)-31%
Max EPS beat(2)49.82%
EPS beat(4)2
Avg EPS beat(4)11.24%
Min EPS beat(4)-31%
Max EPS beat(4)49.82%
EPS beat(8)3
Avg EPS beat(8)-11.03%
EPS beat(12)7
Avg EPS beat(12)-1.92%
EPS beat(16)8
Avg EPS beat(16)-6.67%
Revenue beat(2)2
Avg Revenue beat(2)1.44%
Min Revenue beat(2)1.43%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)1.45%
Revenue beat(8)4
Avg Revenue beat(8)-1.37%
Revenue beat(12)8
Avg Revenue beat(12)-0.69%
Revenue beat(16)10
Avg Revenue beat(16)5.67%
PT rev (1m)-4.75%
PT rev (3m)-8.07%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)5.51%
EPS NY rev (1m)-2%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.84 | ||
| P/S | 0.37 | ||
| P/FCF | 17.38 | ||
| P/OCF | 5.88 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.06 |
EPS(TTM)1.15
EY7%
EPS(NY)1.28
Fwd EY7.79%
FCF(TTM)0.95
FCFY5.75%
OCF(TTM)2.79
OCFY17%
SpS43.97
BVpS13.75
TBVpS-6.1
PEG (NY)1.27
PEG (5Y)N/A
Graham Number18.8639 (14.81%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 8.38% | ||
| ROCE | 6.91% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 10.74% | ||
| OM | 6.17% | ||
| PM (TTM) | 2.62% | ||
| GM | 11.54% | ||
| FCFM | 2.15% |
ROA(3y)3.12%
ROA(5y)3.34%
ROE(3y)13.23%
ROE(5y)17.79%
ROIC(3y)4.28%
ROIC(5y)4.69%
ROICexc(3y)4.32%
ROICexc(5y)4.74%
ROICexgc(3y)8.45%
ROICexgc(5y)10.81%
ROCE(3y)5.62%
ROCE(5y)6.16%
ROICexgc growth 3Y36.24%
ROICexgc growth 5Y-11.26%
ROICexc growth 3Y45.51%
ROICexc growth 5Y-3.96%
OM growth 3Y25.21%
OM growth 5Y-6.51%
PM growth 3Y-8.86%
PM growth 5Y-10.34%
GM growth 3Y9.83%
GM growth 5Y-4.91%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.74 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 163.38% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 2.79 | ||
| Cash Conversion | 72.71% | ||
| Profit Quality | 82.03% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.62 |
F-Score5
WACC8.78%
ROIC/WACC0.6
Cap/Depr(3y)127.38%
Cap/Depr(5y)112.75%
Cap/Sales(3y)4.41%
Cap/Sales(5y)4.06%
Profit Quality(3y)122.64%
Profit Quality(5y)96.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-30.3%
EPS 3Y-2.22%
EPS 5Y-9.36%
EPS Q2Q%223.08%
EPS Next Y11.25%
EPS Next 2Y9.53%
EPS Next 3Y3.71%
EPS Next 5YN/A
Revenue 1Y (TTM)5.12%
Revenue growth 3Y5.76%
Revenue growth 5Y-0.29%
Sales Q2Q%6.41%
Revenue Next Year5.04%
Revenue Next 2Y4.91%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
EBIT growth 1Y25.29%
EBIT growth 3Y32.43%
EBIT growth 5Y-6.78%
EBIT Next Year40.13%
EBIT Next 3Y15.67%
EBIT Next 5YN/A
FCF growth 1Y-60.35%
FCF growth 3Y7.47%
FCF growth 5Y-33.2%
OCF growth 1Y-33.1%
OCF growth 3Y6.75%
OCF growth 5Y-19.55%
SELECT MEDICAL HOLDINGS CORP / SEM Fundamental Analysis 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 6 / 10 to SELECT MEDICAL HOLDINGS CORP (SEM). This can be considered as Fairly Valued.
What is the profitability of SEM stock?
SELECT MEDICAL HOLDINGS CORP (SEM) has a profitability rating of 5 / 10.
What is the earnings growth outlook for SELECT MEDICAL HOLDINGS CORP?
The Earnings per Share (EPS) of SELECT MEDICAL HOLDINGS CORP (SEM) is expected to grow by 11.25% in the next year.
Can you provide the dividend sustainability for SEM stock?
The dividend rating of SELECT MEDICAL HOLDINGS CORP (SEM) is 5 / 10 and the dividend payout ratio is 21.99%.