SELECT MEDICAL HOLDINGS CORP (SEM)
US81619Q1058 - Common Stock
SEM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 118 industry peers in the Health Care Providers & Services industry. SEM has an excellent profitability rating, but there are concerns on its financial health. SEM has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years SEM had a positive operating cash flow.
1.2 Ratios
SEM has a Return On Assets of 3.94%. This is in the better half of the industry: SEM outperforms 74.36% of its industry peers.
With an excellent Return On Equity value of 23.52%, SEM belongs to the best of the industry, outperforming 90.60% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.43%, SEM belongs to the best of the industry, outperforming 82.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SEM is in line with the industry average of 8.48%.
The last Return On Invested Capital (8.43%) for SEM is above the 3 year average (6.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 23.52% | ||
| ROIC | 8.43% |
ROA(3y)3.45%
ROA(5y)3.11%
ROE(3y)22.31%
ROE(5y)21.82%
ROIC(3y)6.79%
ROIC(5y)6.39%
1.3 Margins
Looking at the Profit Margin, with a value of 3.64%, SEM is in the better half of the industry, outperforming 78.63% of the companies in the same industry.
SEM's Profit Margin has improved in the last couple of years.
SEM's Operating Margin of 8.48% is amongst the best of the industry. SEM outperforms 81.20% of its industry peers.
In the last couple of years the Operating Margin of SEM has remained more or less at the same level.
The Gross Margin of SEM (14.15%) is worse than 73.50% of its industry peers.
In the last couple of years the Gross Margin of SEM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.48% | ||
| PM (TTM) | 3.64% | ||
| GM | 14.15% |
OM growth 3Y-1.2%
OM growth 5Y0.28%
PM growth 3Y-7.99%
PM growth 5Y6.07%
GM growth 3Y-1.97%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SEM is creating some 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
An Altman-Z score of 1.92 indicates that SEM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SEM has a Altman-Z score of 1.92. This is comparable to the rest of the industry: SEM outperforms 56.41% of its industry peers.
SEM has a debt to FCF ratio of 10.45. This is a negative value and a sign of low solvency as SEM would need 10.45 years to pay back of all of its debts.
SEM has a Debt to FCF ratio (10.45) which is in line with its industry peers.
SEM has a Debt/Equity ratio of 2.81. This is a high value indicating a heavy dependency on external financing.
SEM has a worse Debt to Equity ratio (2.81) than 71.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.81 | ||
| Debt/FCF | 10.45 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.08
WACC7.81%
2.3 Liquidity
SEM has a Current Ratio of 1.01. 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 1.01, SEM is doing worse than 70.94% of the companies in the same industry.
SEM has a Quick Ratio of 1.01. 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 worse Quick ratio (1.01) than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
SEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.79%, which is quite impressive.
The Earnings Per Share has been growing by 14.08% on average over the past years. This is quite good.
SEM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.99%.
Measured over the past years, SEM shows a small growth in Revenue. The Revenue has been growing by 5.57% on average per year.
EPS 1Y (TTM)61.79%
EPS 3Y1.91%
EPS 5Y14.08%
EPS growth Q2Q63.64%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y6.4%
Revenue growth 5Y5.57%
Revenue growth Q2Q4.89%
3.2 Future
The Earnings Per Share is expected to grow by 5.90% on average over the next years.
Based on estimates for the next years, SEM will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y3.28%
EPS Next 2Y2.99%
EPS Next 3Y5.9%
EPS Next 5YN/A
Revenue Next Year4.86%
Revenue Next 2Y4.72%
Revenue Next 3Y4.68%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.70, the valuation of SEM can be described as correct.
Based on the Price/Earnings ratio, SEM is valued a bit cheaper than 79.49% of the companies in the same industry.
SEM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.17 indicates a correct valuation of SEM.
Based on the Price/Forward Earnings ratio, SEM is valued a bit cheaper than the industry average as 73.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.48, SEM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEM is valued cheaper than 84.62% of the companies in the same industry.
87.18% of the companies in the same industry are more expensive than SEM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.09 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SEM does not grow enough to justify the current Price/Earnings ratio.
SEM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.08
PEG (5Y)1.19
EPS Next 2Y2.99%
EPS Next 3Y5.9%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.78, SEM pays a better dividend. On top of this SEM pays more dividend than 88.03% of the companies listed in the same industry.
SEM's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
On average, the dividend of SEM grows each year by 38.03%, which is quite nice.
SEM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SEM decreased in the last 3 years.
Dividend Growth(5Y)38.03%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
SEM pays out 21.09% of its income as dividend. This is a sustainable payout ratio.
SEM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.09%
EPS Next 2Y2.99%
EPS Next 3Y5.9%
SELECT MEDICAL HOLDINGS CORP
NYSE:SEM (5/9/2024, 7:17:51 PM)
After market: 33.23 0 (0%)33.23
+0.39 (+1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 16.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.08
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 23.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.48% | ||
| PM (TTM) | 3.64% | ||
| GM | 14.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)61.79%
EPS 3Y1.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.99%
Revenue growth 3Y6.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y