SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
NYSE:SEM - New York Stock Exchange, Inc. - US81619Q1058 - Common Stock - Currency: USD
Overall SEM gets a fundamental rating of 4 out of 10. We evaluated SEM against 103 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 quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SEM was profitable.
SEM had a positive operating cash flow in the past year.
Each year in the past 5 years SEM has been profitable.
SEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.72%, SEM is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
The Return On Equity of SEM (12.31%) is better than 77.67% of its industry peers.
The Return On Invested Capital of SEM (4.31%) 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 9.71%.
The last Return On Invested Capital (4.31%) 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 | 12.31% | ||
| ROIC | 4.31% |
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
SEM's Profit Margin of 4.08% is fine compared to the rest of the industry. SEM outperforms 72.82% of its industry peers.
In the last couple of years the Profit Margin of SEM has grown nicely.
Looking at the Operating Margin, with a value of 5.17%, SEM is in the better half of the industry, outperforming 61.16% 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 71.84% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SEM is destroying value.
SEM has more shares outstanding than it did 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 1.59, we must say that SEM is in the distress zone and has some risk of bankruptcy.
SEM has a Altman-Z score of 1.59. This is in the lower half of the industry: SEM underperforms 63.11% of its industry peers.
SEM has a debt to FCF ratio of 5.06. This is a neutral value as SEM would need 5.06 years to pay back of all of its debts.
SEM's Debt to FCF ratio of 5.06 is fine compared to the rest of the industry. SEM outperforms 66.02% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that SEM has dependencies on debt financing.
SEM has a worse Debt to Equity ratio (1.04) than 64.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.45
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.16 indicates that SEM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, SEM is doing worse than 66.02% of the companies in the same industry.
SEM has a Quick Ratio of 1.16. 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 1.16, SEM is doing worse than 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
SEM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.53%.
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.
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)-38.53%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-41.33%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-5.8%
Revenue growth 5Y-1%
Sales Q2Q%-24.35%
3.2 Future
The Earnings Per Share is expected to decrease by -1.39% on average over the next years.
SEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.66% yearly.
EPS Next Y-32.46%
EPS Next 2Y-9.43%
EPS Next 3Y-1.39%
EPS Next 5YN/A
Revenue Next Year-16.63%
Revenue Next 2Y-6.23%
Revenue Next 3Y-2.66%
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.
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
Based on the Price/Earnings ratio of 11.33, the valuation of SEM can be described as reasonable.
Based on the Price/Earnings ratio, SEM is valued cheaply inside the industry as 87.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.15, SEM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.22, the valuation of SEM can be described as reasonable.
SEM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SEM is cheaper than 85.44% of the companies in the same industry.
SEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEM is valued a bit cheaper than the industry average as 78.64% of the companies are valued more expensively.
SEM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SEM is cheaper than 93.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.45 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
The decent profitability rating of SEM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.93
EPS Next 2Y-9.43%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.67%. 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 2.37. SEM pays more dividend than 88.35% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, SEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
SEM has been paying a dividend for at least 10 years, so it has 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
26.75% of the earnings are spent on dividend by SEM. This is a low number and sustainable payout ratio.
DP26.75%
EPS Next 2Y-9.43%
EPS Next 3Y-1.39%
15.18
-0.09 (-0.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.24%
Inst Owner Change3.33%
Ins Owners9.63%
Ins Owner Change-1.04%
Market Cap1.96B
Analysts80
Price Target20.91 (37.75%)
Short Float %3.94%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP26.75%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.27%
Min EPS beat(2)-158.51%
Max EPS beat(2)-4.04%
EPS beat(4)0
Avg EPS beat(4)-41.59%
Min EPS beat(4)-158.51%
Max EPS beat(4)-1.75%
EPS beat(8)4
Avg EPS beat(8)-12.37%
EPS beat(12)5
Avg EPS beat(12)-15.72%
EPS beat(16)9
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-7.35%
Min Revenue beat(2)-11.07%
Max Revenue beat(2)-3.62%
Revenue beat(4)1
Avg Revenue beat(4)-3.6%
Min Revenue beat(4)-11.07%
Max Revenue beat(4)0.41%
Revenue beat(8)5
Avg Revenue beat(8)-1.26%
Revenue beat(12)7
Avg Revenue beat(12)7.31%
Revenue beat(16)11
Avg Revenue beat(16)13.14%
PT rev (1m)-3.15%
PT rev (3m)-10.09%
EPS NQ rev (1m)-4.2%
EPS NQ rev (3m)-3.63%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 11.22 | ||
| P/S | 0.38 | ||
| P/FCF | 5.45 | ||
| P/OCF | 3.37 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.19 |
EPS(TTM)1.34
EY8.83%
EPS(NY)1.35
Fwd EY8.92%
FCF(TTM)2.78
FCFY18.34%
OCF(TTM)4.51
OCFY29.68%
SpS40.22
BVpS13.33
TBVpS-5.54
PEG (NY)N/A
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 12.31% | ||
| ROCE | 5.65% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 9.01% | ||
| OM | 5.17% | ||
| PM (TTM) | 4.08% | ||
| GM | 12.22% | ||
| FCFM | 6.92% |
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-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 3.95 | ||
| Cap/Depr | 120.24% | ||
| Cap/Sales | 4.28% | ||
| Interest Coverage | 1.4 | ||
| Cash Conversion | 128.29% | ||
| Profit Quality | 169.61% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.59 |
F-Score4
WACC9.54%
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)-38.53%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-41.33%
EPS Next Y-32.46%
EPS Next 2Y-9.43%
EPS Next 3Y-1.39%
EPS Next 5YN/A
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-5.8%
Revenue growth 5Y-1%
Sales Q2Q%-24.35%
Revenue Next Year-16.63%
Revenue Next 2Y-6.23%
Revenue Next 3Y-2.66%
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y-27.83%
EBIT growth 5Y-10.68%
EBIT Next Year-15.36%
EBIT Next 3Y-0.34%
EBIT Next 5YN/A
FCF growth 1Y181.61%
FCF growth 3Y10.24%
FCF growth 5Y0.52%
OCF growth 1Y76.13%
OCF growth 3Y8.88%
OCF growth 5Y3.07%