SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SEM - US81619Q1058 - Common Stock
15.42 USD
-0.02 (-0.13%)
15.42 USD
0 (0%)
SEM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SEM was profitable.
SEM had a positive operating cash flow in the past year.
SEM had positive earnings in each of the past 5 years.
In the past 5 years SEM always reported a positive cash flow from operatings.
1.2 Ratios
SEM has a better Return On Assets (3.72%) than 68.00% of its industry peers.
SEM has a better Return On Equity (12.53%) than 77.00% 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 51.00% of the companies in the same industry.
SEM had an Average Return On Invested Capital over the past 3 years of 3.10%. This is significantly below the industry average of 9.44%.
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
Looking at the Profit Margin, with a value of 4.08%, SEM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SEM has grown nicely.
The Operating Margin of SEM (5.17%) is better than 62.00% of its industry peers.
SEM's Operating Margin has declined in the last couple of years.
The Gross Margin of SEM (12.22%) is worse than 72.00% 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
SEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SEM has been increased compared to 1 year ago.
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 1.58, we must say that SEM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.58, SEM is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of SEM (10.18) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.03 is on the high side and indicates that SEM has dependencies on debt financing.
SEM has a worse Debt to Equity ratio (1.03) than 63.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.44
WACC9.94%
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 64.00% of its industry peers.
A Quick Ratio of 1.09 indicates that SEM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, SEM perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
SEM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.81%.
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.
Looking at the last year, SEM shows a small growth in Revenue. The Revenue has grown by 7.48% in the last year.
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
The Earnings Per Share is expected to decrease by -2.53% on average over the next years.
The Revenue is expected to decrease by -2.85% on average over the next years.
EPS Next Y-24.41%
EPS Next 2Y-10.2%
EPS Next 3Y-2.53%
EPS Next 5YN/A
Revenue Next Year-16.41%
Revenue Next 2Y-6.62%
Revenue Next 3Y-2.85%
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
A Price/Earnings ratio of 17.93 indicates a rather expensive valuation of SEM.
Based on the Price/Earnings ratio, SEM is valued a bit cheaper than the industry average as 77.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SEM to the average of the S&P500 Index (26.54), we can say SEM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.59, the valuation of SEM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 87.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. SEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
77.00% 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 83.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.97 | ||
| EV/EBITDA | 8.67 |
4.3 Compensation for Growth
The decent profitability rating of SEM may justify a higher PE ratio.
SEM's earnings are expected to decrease with -2.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.05
EPS Next 2Y-10.2%
EPS Next 3Y-2.53%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.44, SEM pays a better dividend. On top of this SEM pays more dividend than 89.00% of the companies listed in the same industry.
SEM's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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 2Y-10.2%
EPS Next 3Y-2.53%
15.42
-0.02 (-0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.89%
Inst Owner Change-0.2%
Ins Owners11.06%
Ins Owner Change4.92%
Market Cap1.91B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts77.78
Price Target18.53 (20.17%)
Short Float %4.55%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)0.93%
PT rev (3m)1.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)3.91%
EPS NY rev (3m)8.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 11.59 | ||
| P/S | 0.37 | ||
| P/FCF | 10.97 | ||
| P/OCF | 4.68 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.67 |
EPS(TTM)0.86
EY5.58%
EPS(NY)1.33
Fwd EY8.63%
FCF(TTM)1.41
FCFY9.11%
OCF(TTM)3.29
OCFY21.35%
SpS41.89
BVpS13.64
TBVpS-6.02
PEG (NY)N/A
PEG (5Y)3.05
Graham Number16.25
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 | 1.58 |
F-Score5
WACC9.94%
ROIC/WACC0.44
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-24.41%
EPS Next 2Y-10.2%
EPS Next 3Y-2.53%
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-16.41%
Revenue Next 2Y-6.62%
Revenue Next 3Y-2.85%
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y-27.83%
EBIT growth 5Y-10.68%
EBIT Next Year-15.94%
EBIT Next 3Y-1.02%
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 6 / 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 17.93 and the Price/Book (PB) ratio is 1.13.
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%.