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Select Medical Holdings

NYSE:SEM
Snowflake Description

Solid track record and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SEM
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates acute care hospitals (LTCHs), inpatient rehabilitation facilities (IRFs), outpatient rehabilitation clinics, and occupational medicine centers in the United States. The last earnings update was 113 days ago. More info.


Add to Portfolio Compare Print
  • Select Medical Holdings has significant price volatility in the past 3 months.
SEM Share Price and Events
7 Day Returns
-1.7%
NYSE:SEM
0.7%
US Healthcare
1.4%
US Market
1 Year Returns
-17%
NYSE:SEM
11.3%
US Healthcare
2.3%
US Market
SEM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Select Medical Holdings (SEM) -1.7% 2% -17.1% -17% 60.1% 38.1%
US Healthcare 0.7% 3.5% 0.1% 11.3% 38.7% 88%
US Market 1.4% 5.6% 5.7% 2.3% 44.2% 40.9%
1 Year Return vs Industry and Market
  • SEM underperformed the Healthcare industry which returned 11.3% over the past year.
  • SEM underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
SEM
Industry
5yr Volatility vs Market

Value

 Is Select Medical Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Select Medical Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Select Medical Holdings.

NYSE:SEM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SEM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.77 (1 + (1- 21%) (160.05%))
1.743
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.74
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.743 * 7.27%)
15.4%

Discounted Cash Flow Calculation for NYSE:SEM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Select Medical Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SEM DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 245.00 236.00 262.78 292.59 325.79
Source Analyst x1 Analyst x1 Est @ 11.35% Est @ 11.35% Est @ 11.35%
Present Value
Discounted (@ 15.4%)
212.30 177.20 170.97 164.96 159.16
Present value of next 5 years cash flows $884.58
NYSE:SEM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $325.79 × (1 + 2.73%) ÷ (15.4% – 2.73%)
$2,640.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $2,640.64 ÷ (1 + 15.4%)5
$1,290.04
NYSE:SEM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $884.58 + $1,290.04
$2,174.62
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,174.62 / 135.33
$16.07
NYSE:SEM Discount to Share Price
Calculation Result
Value per share (USD) From above. $16.07
Current discount Discount to share price of $15.48
= -1 x ($15.48 - $16.07) / $16.07
3.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Select Medical Holdings is available for.
Intrinsic value
4%
Share price is $15.48 vs Future cash flow value of $16.07
Current Discount Checks
For Select Medical Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Select Medical Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Select Medical Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Select Medical Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Select Medical Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SEM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $1.59
NYSE:SEM Share Price ** NYSE (2019-02-21) in USD $15.48
United States of America Healthcare Industry PE Ratio Median Figure of 52 Publicly-Listed Healthcare Companies 21.37x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 17.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Select Medical Holdings.

NYSE:SEM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SEM Share Price ÷ EPS (both in USD)

= 15.48 ÷ 1.59

9.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Medical Holdings is good value based on earnings compared to the US Healthcare industry average.
  • Select Medical Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Select Medical Holdings's expected growth come at a high price?
Raw Data
NYSE:SEM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-1.6%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 39 Publicly-Listed Healthcare Companies 1.62x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NYSE:SEM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.72x ÷ -1.6%

-5.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Medical Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Select Medical Holdings's assets?
Raw Data
NYSE:SEM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $5.73
NYSE:SEM Share Price * NYSE (2019-02-21) in USD $15.48
United States of America Healthcare Industry PB Ratio Median Figure of 91 Publicly-Listed Healthcare Companies 2.53x
United States of America Market PB Ratio Median Figure of 5,129 Publicly-Listed Companies 1.87x
NYSE:SEM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SEM Share Price ÷ Book Value per Share (both in USD)

= 15.48 ÷ 5.73

2.7x

* Primary Listing of Select Medical Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Medical Holdings is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Select Medical Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Select Medical Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Select Medical Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Select Medical Holdings expected to grow at an attractive rate?
  • Select Medical Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Select Medical Holdings's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Select Medical Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SEM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SEM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -1.6%
NYSE:SEM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.4%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SEM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SEM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 5,520 433 153 4
2019-12-31 5,314 430 169 6
2018-12-31 5,082 412 141 6
NYSE:SEM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 4,910 489 207
2018-06-30 4,719 415 193
2018-03-31 4,526 345 189
2017-12-31 4,364 238 171
2017-09-30 4,300 196 93
2017-06-30 4,259 209 82
2017-03-31 4,237 180 74
2016-12-31 4,217 347 112
2016-09-30 4,211 286 121
2016-06-30 4,178 312 143
2016-03-31 3,973 282 146
2015-12-31 3,683 208 127

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Select Medical Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Select Medical Holdings's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SEM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Select Medical Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SEM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.12 1.28 0.93 3.00
2019-12-31 1.04 1.10 0.96 5.00
2018-12-31 1.06 1.08 1.03 5.00
NYSE:SEM Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 1.59
2018-06-30 1.49
2018-03-31 1.46
2017-12-31 1.33
2017-09-30 0.73
2017-06-30 0.64
2017-03-31 0.58
2016-12-31 0.88
2016-09-30 0.95
2016-06-30 1.12
2016-03-31 1.15
2015-12-31 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Select Medical Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Select Medical Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Select Medical Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Select Medical Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Select Medical Holdings's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Select Medical Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Select Medical Holdings's 1-year earnings growth exceeds its 5-year average (121.5% vs 8.2%)
  • Select Medical Holdings's earnings growth has exceeded the US Healthcare industry average in the past year (121.5% vs 17.5%).
Earnings and Revenue History
Select Medical Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Select Medical Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SEM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 4,909.69 206.94 374.77
2018-06-30 4,719.30 192.97 361.36
2018-03-31 4,525.56 188.69 350.00
2017-12-31 4,364.11 171.43 341.33
2017-09-30 4,299.76 93.43 338.92
2017-06-30 4,258.86 81.75 339.54
2017-03-31 4,236.51 74.00 336.83
2016-12-31 4,216.93 111.89 329.29
2016-09-30 4,211.24 120.81 321.23
2016-06-30 4,177.96 143.10 304.94
2016-03-31 3,972.62 146.07 279.09
2015-12-31 3,683.36 126.91 257.14
2015-09-30 3,419.79 123.38 242.03
2015-06-30 3,164.66 120.61 204.75
2015-03-31 3,051.53 119.11 219.40
2014-12-31 3,020.42 117.29 213.95
2014-09-30 2,997.10 120.67 208.38
2014-06-30 2,962.97 117.75 225.30
2014-03-31 2,949.15 110.50 202.45
2013-12-31 2,938.23 111.94 200.62
2013-09-30 2,935.68 122.32 192.75
2013-06-30 2,924.57 123.23 192.54
2013-03-31 2,916.90 138.52 193.67
2012-12-31 2,909.91 145.72 190.39
2012-09-30 2,883.38 143.48 276.31
2012-06-30 2,863.33 145.11 182.95
2012-03-31 2,807.97 114.24 178.71

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Select Medical Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Select Medical Holdings used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Select Medical Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Select Medical Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Select Medical Holdings has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Select Medical Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Select Medical Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Select Medical Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Select Medical Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Select Medical Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Select Medical Holdings Company Filings, last reported 4 months ago.

NYSE:SEM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 1,667.14 3,353.00 160.41
2018-06-30 1,628.16 3,433.98 141.03
2018-03-31 1,572.75 3,522.07 119.68
2017-12-31 1,573.42 2,729.37 122.55
2017-09-30 1,441.97 2,809.23 107.30
2017-06-30 1,412.50 2,794.84 73.80
2017-03-31 1,355.09 2,815.72 65.21
2016-12-31 1,328.06 2,738.35 99.03
2016-09-30 1,306.42 2,674.96 68.22
2016-06-30 1,262.44 2,744.30 78.42
2016-03-31 1,209.35 2,781.75 85.41
2015-12-31 1,146.74 2,414.51 14.44
2015-09-30 1,130.60 2,374.84 22.64
2015-06-30 1,111.35 2,476.10 25.19
2015-03-31 819.51 1,599.61 6.59
2014-12-31 786.23 1,574.72 3.35
2014-09-30 774.41 1,557.83 11.03
2014-06-30 756.84 1,622.72 3.14
2014-03-31 745.27 1,630.68 4.69
2013-12-31 830.23 1,457.78 4.32
2013-09-30 811.28 1,496.32 9.29
2013-06-30 801.33 1,550.42 8.77
2013-03-31 783.81 1,504.34 4.50
2012-12-31 756.29 1,488.08 40.14
2012-09-30 922.72 1,355.23 49.68
2012-06-30 896.93 1,374.27 21.52
2012-03-31 872.08 1,432.59 9.27
  • Select Medical Holdings's level of debt (201.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (184.3% vs 201.1% today).
  • Debt is not well covered by operating cash flow (14.6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Select Medical Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Select Medical Holdings has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Select Medical Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Select Medical Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of Select Medical Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Select Medical Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Select Medical Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SEM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2001 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SEM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31 0.00 2.00
2018-12-31 0.00 3.00
NYSE:SEM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2017-02-23 0.000 0.000
2016-11-03 0.000 0.000
2016-08-04 0.000 0.000
2016-05-05 0.000 0.000
2016-02-26 0.000 0.000
2016-02-25 0.000 0.000
2015-10-29 0.000 0.000
2015-08-06 0.000 0.000
2015-04-30 0.400 2.547
2014-10-30 0.400 2.836
2014-08-07 0.400 3.076
2014-05-01 0.400 2.653
2013-10-31 0.400 3.723
2013-08-09 0.400 4.722
2013-05-02 0.400 4.829

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Select Medical Holdings has not reported any payouts.
  • Unable to verify if Select Medical Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Select Medical Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Select Medical Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Select Medical Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Select Medical Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Select Medical Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Select Medical Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Select Medical Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Chernow
COMPENSATION $7,427,151
AGE 61
TENURE AS CEO 5.1 years
CEO Bio

Mr. David S. Chernow has been the Chief Executive Officer at Select Medical Holdings Corporation and Select Medical Corporation since January 1, 2014. Mr. Chernow has been the President of Select Medical Holdings Corporation and Select Medical Corp. since September 13, 2010 and served as its Chief Administrative Officer since March 2012 until January 1, 2014. Mr. Chernow served as the Chief Development and Strategy Officer of Select Medical Holdings Corporation and Select Medical Corp. from September 30, 2010. to March 2012. Mr. Chernow served as the Chief Executive Officer of OnCure Holdings, Inc.(alternately OnCure Medical Corp.) from May 18, 2007 to February 2010 and also its President until February 2010. He served as the Chief Strategy Officer of Select Medical Holdings Corp. since September 13, 2010. He served as the Chief Executive Officer and President of JA Worldwide (formerly known as Junior Achievement, Inc.), since July 2001 to 2007. From 1999 to 2001, he served as the President of the Physician Services Group of US Oncology, Inc. Mr. Chernow Co-Founded America Oncology Resources (AOR) in 1992 and served as its Chief Development Officer until 1999. He served as a Member of the Board of Directors at ProCure Treatment Centers, Inc. since September 14, 2011. He serves as a Member of the Board of Directors of American Humanics and U.S. Physiatry, LLC. He served as a Director of Select Medical Corp. from January 2002 to September 13, 2010 and Select Medical Holdings Corporation from August 10, 2005 to September 13, 2010. He served as a Director of OnCure Holdings, Inc. and its Executive Director until February 2010. He served as a Member of Advisory Board at The Breakaway Group Inc. Mr. Chernow holds his JD from Pepperdine University and his undergraduate degree from UCLA.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year.
  • David's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Select Medical Holdings management team in years:

19.8
Average Tenure
58.5
Average Age
  • The average tenure for the Select Medical Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bob Ortenzio

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$8M
AGE
60
TENURE
23.1 yrs

David Chernow

TITLE
President & CEO
COMPENSATION
$7M
AGE
61
TENURE
5.1 yrs

Rocco Ortenzio

TITLE
Co-Founder & Vice Chairman
COMPENSATION
$5M
AGE
85
TENURE
23.1 yrs

Marty Jackson

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
63
TENURE
19.8 yrs

Michael Tarvin

TITLE
Executive VP
COMPENSATION
$3M
AGE
57
TENURE
22 yrs

Scott Romberger

TITLE
Senior VP
COMPENSATION
$380K
AGE
57
TENURE
18.2 yrs

Robert Breighner

TITLE
VP of Compliance & Audit Services and Corporate Compliance Officer
AGE
49

John Saich

TITLE
Executive VP & Chief Human Resources Officer
AGE
49
TENURE
8.2 yrs

Joel Veit

TITLE
Senior VP & Treasurer
Board of Directors Tenure

Average tenure and age of the Select Medical Holdings board of directors in years:

6.9
Average Tenure
66.5
Average Age
  • The tenure for the Select Medical Holdings board of directors is about average.
Board of Directors

Rocco Ortenzio

TITLE
Co-Founder & Vice Chairman
COMPENSATION
$5M
AGE
85
TENURE
5.1 yrs

Leo Swergold

TITLE
Independent Director
COMPENSATION
$270K
AGE
77
TENURE
13.5 yrs

Bob Ortenzio

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$8M
AGE
60
TENURE
5.1 yrs

Bryan Cressey

TITLE
Independent Director
COMPENSATION
$247K
AGE
69
TENURE
14 yrs

James Ely

TITLE
Independent Director
COMPENSATION
$271K
AGE
60
TENURE
10.3 yrs

Bill Frist

TITLE
Director
COMPENSATION
$258K
AGE
66
TENURE
8.8 yrs

Russell Carson

TITLE
Lead Director
COMPENSATION
$242K
AGE
75
TENURE
4.1 yrs

Thomas Scully

TITLE
Director
COMPENSATION
$5K
AGE
60
TENURE
15 yrs

Harold Paz

TITLE
Director
COMPENSATION
$376K
AGE
63
TENURE
2 yrs

Marilyn Tavenner

TITLE
Director
AGE
67
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Jun 18 Sell Scott Romberger Individual 11. Jun 18 11. Jun 18 -5,000 $18.64 $-93,153
08. May 18 Sell Robert Breighner Individual 08. May 18 08. May 18 -3,428 $18.03 $-61,807
28. Feb 18 Sell Scott Romberger Individual 26. Feb 18 26. Feb 18 -5,000 $18.48 $-92,302
X
Management checks
We assess Select Medical Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Select Medical Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Is Select Medical Holdings Corporation's (NYSE:SEM) Share Price Doing?

Select Medical Holdings Corporation (NYSE:SEM), which is in the healthcare business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Select Medical Holdings’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

A Look At The Intrinsic Value Of Select Medical Holdings Corporation (NYSE:SEM)

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Does Select Medical Holdings Corporation (NYSE:SEM) Have A Particularly Volatile Share Price?

If you're interested in Select Medical Holdings Corporation (NYSE:SEM), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Examining Select Medical Holdings Corporation’s (NYSE:SEM) Weak Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

What Select Medical Holdings Corporation's (NYSE:SEM) ROE Can Tell Us

Our data shows Select Medical Holdings has a return on equity of 16% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Many Insiders Sold Select Medical Holdings Corporation (NYSE:SEM) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Select Medical Holdings Corporation (NYSE:SEM). … Select Medical Holdings Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Select Medical Holdings shares, than buying

Simply Wall St -

Does Select Medical Holdings Corporation's (NYSE:SEM) P/E Ratio Signal A Buying Opportunity?

We'll show how you can use Select Medical Holdings Corporation's (NYSE:SEM) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Select Medical Holdings's P/E ratio is 12.24. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Think About Buying Select Medical Holdings Corporation (NYSE:SEM) Now?

Select Medical Holdings Corporation (NYSE:SEM), which is in the healthcare business, and is based in United States,. … A question to answer is whether Select Medical Holdings's current trading price of $16.58 reflective of the actual value of the? … Let’s take a look at Select Medical Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is Select Medical Holdings Corporation (NYSE:SEM) Excessively Paying Its CEO?

In 2014 David Chernow was appointed CEO of Select Medical Holdings Corporation (NYSE:SEM). … At the time of writing our data says that Select Medical Holdings Corporation has a market cap of US$2.2b, and is paying total annual CEO compensation of US$7m. … It would therefore appear that Select Medical Holdings Corporation pays David Chernow more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Should You Be Concerned About Select Medical Holdings Corporation's (NYSE:SEM) Earnings Growth?

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Investors may find my commentary, albeit very high-level and brief, on Select Medical Holdings Corporation (NYSE:SEM) useful as an attempt to give more color around how Select Medical Holdings is currently performing. … See our latest analysis for Select Medical Holdings?

Simply Wall St -

Company Info

Map
Description

Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates acute care hospitals (LTCHs), inpatient rehabilitation facilities (IRFs), outpatient rehabilitation clinics, and occupational medicine centers in the United States. The company operates through four segments: Long Term Acute Care, Inpatient Rehabilitation, Outpatient Rehabilitation, and Concentra. The Long Term Acute Care segment consists of hospitals that provide services for heart failure, infectious disease, respiratory failure and pulmonary disease, surgery requiring recovery, renal disease, neurological events, and trauma. As of December 31, 2017, it operated 100 LTCHs in 27 states. The Inpatient Rehabilitation segment offers therapy and rehabilitation treatments, including rehabilitative services for brain and spinal cord injuries, strokes, amputations, neurological disorders, orthopedic conditions, pediatric congenital or acquired disabilities, and cancer. As of December 31, 2017, it operated 24 IRFs in 10 states. The Outpatient Rehabilitation segment operates rehabilitation clinics that provide physical, occupational, and speech rehabilitation programs and services; and specialized programs, such as functional programs for work related injuries, hand therapy, post-concussion rehabilitation, and athletic training services. As of December 31, 2017, it operated 1,616 facilities in 37 states and the District of Columbia The company’s Concentra segment operates and provides medical centers and contract services at employer worksites and Department of Veterans Affairs community-based outpatient clinics (CBOCs) that deliver occupational medicine, consumer health, physical therapy, and veteran's healthcare services. This segment operated 312 medical centers, 105 onsite clinics at employer worksites, and 32 Department of Veterans Affairs CBOCs in 43 states. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.

Details
Name: Select Medical Holdings Corporation
SEM
Exchange: NYSE
Founded: 1996
$2,094,937,254
135,331,864
Website: http://www.selectmedical.com
Address: Select Medical Holdings Corporation
4714 Gettysburg Road,
PO Box 2034,
Mechanicsburg,
Pennsylvania, 17055,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SEM Common Stock New York Stock Exchange US USD 25. Sep 2009
DB S24 Common Stock Deutsche Boerse AG DE EUR 25. Sep 2009
Number of employees
Current staff
Staff numbers
36,050
Select Medical Holdings employees.
Industry
Health Care Facilities
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/22 00:33
End of day share price update: 2019/02/21 00:00
Last estimates confirmation: 2019/02/20
Last earnings filing: 2018/11/01
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.