SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
USA - NYSE:SEM - US81619Q1058 - Common Stock
12.64 USD
+0.23 (+1.85%)
12.64 USD
0 (0%)
Overall SEM gets a fundamental rating of 4 out of 10. We evaluated SEM against 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.
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 3.69%, SEM is in the better half of 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.
The Return On Invested Capital of SEM (4.27%) 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 9.19%.
The 3 year average ROIC (3.10%) for SEM is below the current ROIC(4.27%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 4.08%, SEM is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
SEM's Profit Margin has improved in the last couple of years.
SEM has a Operating Margin of 5.17%. This is in the better half of the industry: SEM outperforms 61.39% of its industry peers.
SEM's Operating Margin has declined in the last couple of years.
The Gross Margin of SEM (12.22%) is worse than 69.31% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SEM is destroying value.
The number of shares outstanding for SEM has been increased compared to 1 year ago.
The number of shares outstanding for SEM has been reduced compared to 5 years ago.
The debt/assets ratio for SEM has been reduced compared to a year ago.
2.2 Solvency
SEM has an Altman-Z score of 1.51. This is a bad value and indicates that SEM is not financially healthy and even has some risk of bankruptcy.
SEM has a Altman-Z score of 1.51. This is in the lower half of the industry: SEM underperforms 63.37% of its industry peers.
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.
The Debt to FCF ratio of SEM (10.30) is comparable to the rest of the 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 | 1.51 |
ROIC/WACC0.43
WACC10.03%
2.3 Liquidity
A Current Ratio of 1.15 indicates that SEM should not have too much problems paying 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.
A Quick Ratio of 1.15 indicates that SEM should not have too much problems paying its short term obligations.
SEM's Quick ratio of 1.15 is on the low side compared to the rest of the industry. SEM is outperformed by 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.
Looking at the last year, SEM shows a small growth in Revenue. The Revenue has grown by 7.48% in the last year.
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 -5.01% on average per year.
SEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.82% yearly.
EPS Next Y-30.12%
EPS Next 2Y-11.95%
EPS Next 3Y-5.01%
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 11.92, the valuation of SEM can be described as reasonable.
Based on the Price/Earnings ratio, SEM is valued cheaply inside the industry as 88.12% of the companies are valued more expensively.
SEM is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of SEM.
Based on the Price/Forward Earnings ratio, SEM is valued cheaply inside the industry as 89.11% of the companies are valued more expensively.
SEM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
81.19% of the companies in the same industry are more expensive than SEM, based on the Enterprise Value to EBITDA ratio.
88.12% 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 | 8.61 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
SEM has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SEM's earnings are expected to decrease with -5.01% in the coming years.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y-11.95%
EPS Next 3Y-5.01%
5. Dividend
5.1 Amount
SEM has a Yearly Dividend Yield of 1.97%. 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 2.41. SEM pays more dividend than 89.11% of the companies in the same industry.
SEM's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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
SEM pays out 22.80% of its income as dividend. This is a sustainable payout ratio.
DP22.8%
EPS Next 2Y-11.95%
EPS Next 3Y-5.01%
12.64
+0.23 (+1.85%)
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-5.11%
Ins Owners10.41%
Ins Owner Change3.66%
Market Cap1.57B
Analysts80
Price Target17.68 (39.87%)
Short Float %3.41%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)-2.8%
PT rev (3m)-15.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.47%
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 | 11.92 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.3 | ||
| P/FCF | 8.61 | ||
| P/OCF | 3.79 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.78 |
EPS(TTM)1.06
EY8.39%
EPS(NY)1.28
Fwd EY10.12%
FCF(TTM)1.47
FCFY11.62%
OCF(TTM)3.33
OCFY26.37%
SpS41.83
BVpS13.44
TBVpS-6.18
PEG (NY)N/A
PEG (5Y)2.03
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
WACC10.03%
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-5.01%
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%