SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - NYSE:SEM - US81619Q1058 - Common Stock
13.39 USD
+0.03 (+0.22%)
13.39 USD
0 (0%)
SEM gets a fundamental rating of 3 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years SEM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SEM (3.69%) is better than 70.00% of its industry peers.
SEM has a Return On Equity of 12.70%. This is in the better half of the industry: SEM outperforms 78.00% of its industry peers.
SEM has a Return On Invested Capital of 4.27%. This is comparable to the rest of the industry: SEM outperforms 51.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SEM is significantly below the industry average of 9.33%.
The 3 year average ROIC (3.10%) for SEM is below the current ROIC(4.27%), indicating increased profibility in the last year.
| 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 72.00% 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.
SEM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.22%, 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 | 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.
The number of shares outstanding for SEM has been increased compared to 1 year ago.
The number of shares outstanding for SEM has been reduced compared to 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's Altman-Z score of 1.53 is on the low side compared to the rest of the industry. SEM is outperformed by 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 47.00% of the companies in the same industry.
SEM has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.11, SEM is not doing good in the industry: 64.00% 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/WACC0.43
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.15 indicates that SEM should not have too much problems paying its short term obligations.
SEM has a worse Current ratio (1.15) than 65.00% of its industry peers.
SEM has a Quick Ratio of 1.15. 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 1.15, SEM is doing worse than 61.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
SEM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.15%.
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.
SEM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.00% yearly.
EPS 1Y (TTM)-51.15%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-5.8%
Revenue growth 5Y-1%
Sales Q2Q%-23.87%
3.2 Future
The Earnings Per Share is expected to decrease by -5.01% 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 -2.82% on average per year.
EPS Next Y-30.12%
EPS Next 2Y-11.95%
EPS Next 3Y-5.01%
EPS Next 5YN/A
Revenue Next Year-16.84%
Revenue Next 2Y-6.53%
Revenue Next 3Y-2.82%
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
With a Price/Earnings ratio of 12.63, SEM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 88.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. SEM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.47, the valuation of SEM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.94. SEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEM is valued cheaper than 81.00% of the companies 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 88.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
SEM's earnings are expected to decrease with -5.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.15
EPS Next 2Y-11.95%
EPS Next 3Y-5.01%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
SEM's Dividend Yield is rather good when compared to the industry average which is at 2.44. SEM pays more dividend than 89.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, SEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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-11.95%
EPS Next 3Y-5.01%
13.39
+0.03 (+0.22%)
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-0.14%
Ins Owners10.41%
Ins Owner Change3.66%
Market Cap1.66B
Analysts80
Price Target17.68 (32.04%)
Short Float %3.74%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)-2.8%
PT rev (3m)-15.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 10.47 | ||
| P/S | 0.32 | ||
| P/FCF | 9.12 | ||
| P/OCF | 4.02 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)1.06
EY7.92%
EPS(NY)1.28
Fwd EY9.55%
FCF(TTM)1.47
FCFY10.97%
OCF(TTM)3.33
OCFY24.89%
SpS41.83
BVpS13.44
TBVpS-6.18
PEG (NY)N/A
PEG (5Y)2.15
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%
ROICexcg growth 3Y-27.06%
ROICexcg 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
WACC9.96%
ROIC/WACC0.43
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)-51.15%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-46.67%
EPS Next Y-30.12%
EPS Next 2Y-11.95%
EPS Next 3Y-5.01%
EPS Next 5YN/A
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-5.8%
Revenue growth 5Y-1%
Sales Q2Q%-23.87%
Revenue Next Year-16.84%
Revenue Next 2Y-6.53%
Revenue Next 3Y-2.82%
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%