SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
NYSE:SEM - New York Stock Exchange, Inc. - US81619Q1058 - Common Stock - Currency: USD
SEM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a bad growth rate and is valued cheaply.
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.
In the past 5 years SEM has always been profitable.
Each year in the past 5 years SEM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SEM (3.69%) is better than 70.87% of its industry peers.
SEM has a Return On Equity of 12.70%. This is in the better half of the industry: SEM outperforms 79.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.27%, SEM is in line with its industry, outperforming 52.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SEM is significantly below the industry average of 9.38%.
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
With a decent Profit Margin value of 4.08%, SEM is doing good in the industry, outperforming 72.82% of the companies in the same industry.
SEM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 5.17%, SEM is doing good in 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 has a worse Gross Margin (12.22%) than 70.87% 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.
The number of shares outstanding for SEM has been increased compared to 1 year ago.
Compared to 5 years ago, SEM has less shares outstanding
SEM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that SEM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.51, SEM is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
The Debt to FCF ratio of SEM is 10.30, which is on the high side as it means it would take SEM, 10.30 years of fcf income to pay off all of its debts.
SEM has a Debt to FCF ratio of 10.30. This is comparable to the rest of the industry: SEM outperforms 48.54% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that SEM has dependencies on debt financing.
The Debt to Equity ratio of SEM (1.11) is worse than 65.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.3 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.41
WACC10.32%
2.3 Liquidity
SEM has a Current 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 Current ratio, with a value of 1.15, SEM is doing worse than 64.08% of the companies in the same industry.
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.
The Quick ratio of SEM (1.15) is comparable to the rest of the 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%.
The Earnings Per Share has been growing slightly by 5.88% on average over the past years.
SEM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.48%.
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
Based on estimates for the next years, SEM will show a decrease in Earnings Per Share. The EPS will decrease by -1.39% on average per year.
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-11.08%
EPS Next 3Y-1.39%
EPS Next 5YN/A
Revenue Next Year-16.63%
Revenue Next 2Y-6.31%
Revenue Next 3Y-2.66%
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.
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
SEM is valuated reasonably with a Price/Earnings ratio of 11.39.
Compared to the rest of the industry, the Price/Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 84.47% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. SEM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.25 indicates a reasonable valuation of SEM.
Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 85.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.04. SEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 80.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SEM is valued cheaply inside the industry as 87.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.52 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
SEM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y-11.08%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, SEM pays a better dividend. On top of this SEM pays more dividend than 88.35% of the companies listed in the same industry.
SEM's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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
SEM pays out 22.80% of its income as dividend. This is a sustainable payout ratio.
DP22.8%
EPS Next 2Y-11.08%
EPS Next 3Y-1.39%
12.07
+0.17 (+1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.64%
Inst Owner Change0.76%
Ins Owners10.1%
Ins Owner Change3.69%
Market Cap1.55B
Analysts80
Price Target18.7 (54.93%)
Short Float %2.69%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)-10.57%
PT rev (3m)-13.39%
EPS NQ rev (1m)-5.45%
EPS NQ rev (3m)-43.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.25 | ||
| P/S | 0.3 | ||
| P/FCF | 8.52 | ||
| P/OCF | 3.75 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.74 |
EPS(TTM)1.06
EY8.78%
EPS(NY)1.3
Fwd EY10.81%
FCF(TTM)1.42
FCFY11.74%
OCF(TTM)3.21
OCFY26.63%
SpS40.35
BVpS12.97
TBVpS-5.97
PEG (NY)N/A
PEG (5Y)1.94
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 | 1.51 |
F-Score5
WACC10.32%
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)-51.15%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-46.67%
EPS Next Y-32.46%
EPS Next 2Y-11.08%
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%-23.87%
Revenue Next Year-16.63%
Revenue Next 2Y-6.31%
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-15.34%
EBIT Next 3Y-0.5%
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%