SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
NYSE:SEM - US81619Q1058 - Common Stock
13.1 USD
+0.09 (+0.69%)
13.2498 USD
+0.15 (+1.14%)
Taking everything into account, SEM scores 4 out of 10 in our fundamental rating. SEM was compared to 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 is cheap, 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.
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
With a decent Return On Assets value of 3.69%, SEM is doing good in the industry, outperforming 71.29% of the companies in the same industry.
With a decent Return On Equity value of 12.70%, SEM is doing good in the industry, outperforming 79.21% of the companies in the same industry.
SEM's Return On Invested Capital of 4.27% is in line compared to the rest of the industry. SEM outperforms 52.48% of its industry peers.
SEM had an Average Return On Invested Capital over the past 3 years of 3.10%. This is significantly below the industry average of 9.19%.
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
The Profit Margin of SEM (4.08%) is better than 72.28% of its industry peers.
SEM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.17%, SEM is in the better half of the industry, outperforming 61.39% of the companies in the same industry.
In the last couple of years the Operating Margin of SEM has declined.
With a Gross Margin value of 12.22%, SEM is not doing good in the industry: 69.31% of the companies in the same industry are doing better.
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.
SEM has less shares outstanding than it did 5 years ago.
SEM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that SEM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.52, SEM is doing worse than 62.38% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 10.30, SEM is in line with its industry, outperforming 48.51% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that SEM has dependencies on debt financing.
SEM's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. SEM is outperformed by 63.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.3 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.43
WACC9.95%
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 64.36% 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.
SEM has a worse Quick ratio (1.15) than 60.40% of its industry peers.
| 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%.
SEM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.88% yearly.
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 -1.53% on average per year.
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-1.53%
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.
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 12.36, the valuation of SEM can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 86.14% of the companies listed in the same industry.
SEM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
A Price/Forward Earnings ratio of 10.24 indicates a reasonable valuation of SEM.
84.16% of the companies in the same industry are more expensive than SEM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. SEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEM is valued cheaply inside the industry as 81.19% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 88.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 7.91 |
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)2.1
EPS Next 2Y-11.95%
EPS Next 3Y-1.53%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.92%.
SEM's Dividend Yield is rather good when compared to the industry average which is at 2.48. SEM pays more dividend than 89.11% of the companies in the same industry.
SEM's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
22.80% of the earnings are spent on dividend by SEM. This is a low number and sustainable payout ratio.
DP22.8%
EPS Next 2Y-11.95%
EPS Next 3Y-1.53%
13.1
+0.09 (+0.69%)
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 Change-5.14%
Ins Owners10.1%
Ins Owner Change3.66%
Market Cap1.62B
Analysts80
Price Target18.19 (38.85%)
Short Float %3.48%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)-2.73%
PT rev (3m)-13.01%
EPS NQ rev (1m)-12.82%
EPS NQ rev (3m)-51.08%
EPS NY rev (1m)3.47%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 10.24 | ||
| P/S | 0.31 | ||
| P/FCF | 8.92 | ||
| P/OCF | 3.93 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.91 |
EPS(TTM)1.06
EY8.09%
EPS(NY)1.28
Fwd EY9.77%
FCF(TTM)1.47
FCFY11.21%
OCF(TTM)3.33
OCFY25.44%
SpS41.83
BVpS13.44
TBVpS-6.18
PEG (NY)N/A
PEG (5Y)2.1
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 | 1.52 |
F-Score5
WACC9.95%
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-1.53%
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-15.34%
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%