SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - NYSE:SEM - US81619Q1058 - Common Stock
14.2 USD
-0.08 (-0.56%)
14.2 USD
0 (0%)
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 valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SEM had positive earnings in the past year.
In the past year SEM had a positive cash flow from operations.
SEM had positive earnings in each of the past 5 years.
Each year in the past 5 years SEM had a positive operating cash flow.
1.2 Ratios
SEM's Return On Assets of 3.69% is fine compared to the rest of the industry. SEM outperforms 70.30% of its industry peers.
SEM has a Return On Equity of 12.70%. This is in the better half of the industry: SEM outperforms 78.22% of its industry peers.
With a Return On Invested Capital value of 4.27%, SEM perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SEM is significantly below the industry average of 9.34%.
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 73.27% of its industry peers.
SEM's Profit Margin has improved in the last couple of years.
SEM's Operating Margin of 5.17% is fine compared to the rest of the industry. SEM outperforms 60.40% of its industry peers.
In the last couple of years the Operating Margin of SEM has declined.
SEM has a worse Gross Margin (12.22%) than 70.30% 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
SEM has an Altman-Z score of 1.54. This is a bad value and indicates that SEM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SEM (1.54) is worse than 66.34% of its industry peers.
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 (10.30) which is in line with its industry peers.
SEM has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.11, SEM is not doing good in the industry: 63.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 10.3 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.41
WACC10.43%
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.
The Current ratio of SEM (1.15) is worse than 64.36% of its industry peers.
A Quick Ratio of 1.15 indicates that SEM should not have too much problems paying 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
The earnings per share for SEM have decreased strongly by -51.15% in the last year.
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%.
Measured over the past years, SEM shows a decrease in Revenue. The Revenue has been decreasing by -1.00% on average per year.
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
The Earnings Per Share is expected to decrease by -4.68% on average over the next years.
SEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.82% yearly.
EPS Next Y-29.2%
EPS Next 2Y-11.77%
EPS Next 3Y-4.68%
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
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
Based on the Price/Earnings ratio of 13.40, 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 82.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. SEM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.06, the valuation of SEM can be described as very reasonable.
SEM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SEM is cheaper than 86.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. SEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
80.20% 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 88.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
SEM has a very decent profitability rating, which may justify a higher PE ratio.
SEM's earnings are expected to decrease with -4.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.28
EPS Next 2Y-11.77%
EPS Next 3Y-4.68%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.75%.
SEM's Dividend Yield is rather good when compared to the industry average which is at 2.42. SEM pays more dividend than 88.12% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, SEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
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-11.77%
EPS Next 3Y-4.68%
14.2
-0.08 (-0.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.75%
Inst Owner Change-0.62%
Ins Owners10.41%
Ins Owner Change3.66%
Market Cap1.76B
Revenue(TTM)5.19B
Net Income(TTM)211.72M
Analysts80
Price Target17.68 (24.51%)
Short Float %3.41%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)0%
PT rev (3m)-15.45%
EPS NQ rev (1m)11.76%
EPS NQ rev (3m)-7.88%
EPS NY rev (1m)1.31%
EPS NY rev (3m)4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 11.06 | ||
| P/S | 0.34 | ||
| P/FCF | 9.67 | ||
| P/OCF | 4.26 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.25 |
EPS(TTM)1.06
EY7.46%
EPS(NY)1.28
Fwd EY9.04%
FCF(TTM)1.47
FCFY10.34%
OCF(TTM)3.33
OCFY23.47%
SpS41.83
BVpS13.44
TBVpS-6.18
PEG (NY)N/A
PEG (5Y)2.28
Graham Number17.91
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%
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 Turnover0.9
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 | 1.54 |
F-Score5
WACC10.43%
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-29.2%
EPS Next 2Y-11.77%
EPS Next 3Y-4.68%
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-15.89%
EBIT Next 3Y-0.87%
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%
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 7 / 10 to SELECT MEDICAL HOLDINGS CORP (SEM). This can be considered as Undervalued.
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 13.4 and the Price/Book (PB) ratio is 1.06.
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 22.8%.