SELECT MEDICAL HOLDINGS CORP (SEM) Stock Fundamental Analysis
NYSE:SEM - New York Stock Exchange, Inc. - US81619Q1058 - Common Stock - Currency: USD
Taking everything into account, SEM scores 4 out of 10 in our fundamental rating. SEM was compared to 102 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 is cheap, but on the other hand it scores bad on growth.
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.
SEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SEM has a Return On Assets of 3.72%. This is in the better half of the industry: SEM outperforms 70.59% of its industry peers.
SEM has a better Return On Equity (12.31%) than 77.45% of its industry peers.
SEM has a Return On Invested Capital of 4.31%. This is comparable to the rest of the industry: SEM outperforms 49.02% 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 9.53%.
The 3 year average ROIC (3.10%) for SEM is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 12.31% | ||
| ROIC | 4.31% |
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
SEM has a Profit Margin of 4.08%. This is in the better half of the industry: SEM outperforms 72.55% of its industry peers.
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 60.78% of its industry peers.
In the last couple of years the Operating Margin of SEM has declined.
Looking at the Gross Margin, with a value of 12.22%, SEM is doing worse than 72.55% of the companies in the same industry.
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.
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.
SEM has a better debt/assets ratio than last year.
2.2 Solvency
SEM has an Altman-Z score of 1.59. 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 1.59. This is in the lower half of the industry: SEM underperforms 61.76% of its industry peers.
The Debt to FCF ratio of SEM is 5.06, which is a neutral value as it means it would take SEM, 5.06 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.06, SEM is doing good in the industry, outperforming 64.71% of the companies in the same industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that SEM has dependencies on debt financing.
The Debt to Equity ratio of SEM (1.04) is worse than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.46
WACC9.32%
2.3 Liquidity
SEM has a Current Ratio of 1.16. This is a normal value and indicates that SEM is financially healthy and should not expect problems in meeting its short term obligations.
SEM's Current ratio of 1.16 is on the low side compared to the rest of the industry. SEM is outperformed by 67.65% of its industry peers.
SEM has a Quick Ratio of 1.16. This is a normal value and indicates that SEM is financially healthy and should not expect problems in meeting its short term obligations.
SEM's Quick ratio of 1.16 is on the low side compared to the rest of the industry. SEM is outperformed by 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for SEM have decreased strongly by -38.53% 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%.
The Revenue has been decreasing by -1.00% on average over the past years.
EPS 1Y (TTM)-38.53%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-41.33%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-5.8%
Revenue growth 5Y-1%
Sales Q2Q%-24.35%
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-32.3%
EPS Next 2Y-8.49%
EPS Next 3Y-1.39%
EPS Next 5YN/A
Revenue Next Year-16.63%
Revenue Next 2Y-6.23%
Revenue Next 3Y-2.66%
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.
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
A Price/Earnings ratio of 11.28 indicates a reasonable valuation of SEM.
SEM's Price/Earnings ratio is rather cheap when compared to the industry. SEM is cheaper than 89.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. SEM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.94, the valuation of SEM can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SEM indicates a rather cheap valuation: SEM is cheaper than 86.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. SEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 10.94 |
4.2 Price Multiples
80.39% of the companies in the same industry are more expensive than SEM, based on the Enterprise Value to EBITDA ratio.
94.12% 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 | 5.43 | ||
| EV/EBITDA | 8.15 |
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)1.92
EPS Next 2Y-8.49%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, SEM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.46, SEM pays a better dividend. On top of this SEM pays more dividend than 88.24% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, SEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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
26.75% of the earnings are spent on dividend by SEM. This is a low number and sustainable payout ratio.
DP26.75%
EPS Next 2Y-8.49%
EPS Next 3Y-1.39%
15.12
-0.08 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners83.64%
Inst Owner Change3.28%
Ins Owners9.78%
Ins Owner Change-1.2%
Market Cap1.95B
Analysts80
Price Target21.59 (42.79%)
Short Float %3.48%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP26.75%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.27%
Min EPS beat(2)-158.51%
Max EPS beat(2)-4.04%
EPS beat(4)0
Avg EPS beat(4)-41.59%
Min EPS beat(4)-158.51%
Max EPS beat(4)-1.75%
EPS beat(8)4
Avg EPS beat(8)-12.37%
EPS beat(12)5
Avg EPS beat(12)-15.72%
EPS beat(16)9
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-7.35%
Min Revenue beat(2)-11.07%
Max Revenue beat(2)-3.62%
Revenue beat(4)1
Avg Revenue beat(4)-3.6%
Min Revenue beat(4)-11.07%
Max Revenue beat(4)0.41%
Revenue beat(8)5
Avg Revenue beat(8)-1.26%
Revenue beat(12)7
Avg Revenue beat(12)7.31%
Revenue beat(16)11
Avg Revenue beat(16)13.14%
PT rev (1m)-7.16%
PT rev (3m)-28.25%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)-29.83%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-22.44%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-6.67%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-6.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 10.94 | ||
| P/S | 0.38 | ||
| P/FCF | 5.43 | ||
| P/OCF | 3.36 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.15 |
EPS(TTM)1.34
EY8.86%
EPS(NY)1.38
Fwd EY9.14%
FCF(TTM)2.78
FCFY18.42%
OCF(TTM)4.51
OCFY29.8%
SpS40.22
BVpS13.33
TBVpS-5.54
PEG (NY)N/A
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 12.31% | ||
| ROCE | 5.65% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 9.01% | ||
| OM | 5.17% | ||
| PM (TTM) | 4.08% | ||
| GM | 12.22% | ||
| FCFM | 6.92% |
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-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 3.95 | ||
| Cap/Depr | 120.24% | ||
| Cap/Sales | 4.28% | ||
| Interest Coverage | 1.4 | ||
| Cash Conversion | 128.29% | ||
| Profit Quality | 169.61% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.59 |
F-Score4
WACC9.32%
ROIC/WACC0.46
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)-38.53%
EPS 3Y-17.89%
EPS 5Y5.88%
EPS Q2Q%-41.33%
EPS Next Y-32.3%
EPS Next 2Y-8.49%
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%-24.35%
Revenue Next Year-16.63%
Revenue Next 2Y-6.23%
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-13.4%
EBIT Next 3Y1.38%
EBIT Next 5YN/A
FCF growth 1Y181.61%
FCF growth 3Y10.24%
FCF growth 5Y0.52%
OCF growth 1Y76.13%
OCF growth 3Y8.88%
OCF growth 5Y3.07%