Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. More Details
Proven track record with adequate balance sheet.
Share Price & News
How has Select Medical Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SEM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SEM's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SEM exceeded the US Healthcare industry which returned 35.5% over the past year.
Return vs Market: SEM exceeded the US Market which returned 39% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Select Medical Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StIs Now An Opportune Moment To Examine Select Medical Holdings Corporation (NYSE:SEM)?
3 weeks ago | Simply Wall StHave Insiders Sold Select Medical Holdings Corporation (NYSE:SEM) Shares Recently?
3 weeks ago | Simply Wall StIs Select Medical Holdings Corporation's (NYSE:SEM) ROE Of 23% Impressive?
Is Select Medical Holdings undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SEM ($41.99) is trading above our estimate of fair value ($25.23)
Significantly Below Fair Value: SEM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SEM is good value based on its PE Ratio (17.7x) compared to the US Healthcare industry average (20.8x).
PE vs Market: SEM is good value based on its PE Ratio (17.7x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: SEM is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: SEM is overvalued based on its PB Ratio (4.9x) compared to the US Healthcare industry average (4.2x).
How is Select Medical Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SEM's forecast earnings growth (14.5% per year) is above the savings rate (2%).
Earnings vs Market: SEM's earnings (14.5% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: SEM's earnings are forecast to grow, but not significantly.
Revenue vs Market: SEM's revenue (4.1% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: SEM's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SEM's Return on Equity is forecast to be high in 3 years time (23.8%)
How has Select Medical Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SEM has a large one-off gain of $129.2M impacting its March 31 2021 financial results.
Growing Profit Margin: SEM's current net profit margins (5.4%) are higher than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: SEM's earnings have grown by 14.4% per year over the past 5 years.
Accelerating Growth: SEM's earnings growth over the past year (95.8%) exceeds its 5-year average (14.4% per year).
Earnings vs Industry: SEM earnings growth over the past year (95.8%) exceeded the Healthcare industry 59.7%.
Return on Equity
High ROE: Whilst SEM's Return on Equity (22.9%) is high, this metric is skewed due to their high level of debt.
How is Select Medical Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: SEM's short term assets ($1.8B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: SEM's short term assets ($1.8B) do not cover its long term liabilities ($4.6B).
Debt to Equity History and Analysis
Debt Level: SEM's debt to equity ratio (188.7%) is considered high.
Reducing Debt: SEM's debt to equity ratio has reduced from 229.9% to 188.7% over the past 5 years.
Debt Coverage: SEM's debt is well covered by operating cash flow (36.1%).
Interest Coverage: SEM's interest payments on its debt are well covered by EBIT (3.8x coverage).
What is Select Medical Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SEM's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: SEM's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: SEM has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SEM's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (5.3%), SEM's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Chernow (63 yo)
Mr. David S. Chernow has been the Chief Executive Officer at Select Medical Holdings Corporation and Select Medical Corporation since January 1, 2014. Mr. Chernow serves as Chairman of the Board at OneOnco...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD7.53M) is about average for companies of similar size in the US market ($USD6.67M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Experienced Management: SEM's management team is seasoned and experienced (21.3 years average tenure).
Experienced Board: SEM's board of directors are considered experienced (7.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SEM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Select Medical Holdings Corporation's company bio, employee growth, exchange listings and data sources
- Name: Select Medical Holdings Corporation
- Ticker: SEM
- Exchange: NYSE
- Founded: 1996
- Industry: Health Care Facilities
- Sector: Healthcare
- Market Cap: US$5.625b
- Shares outstanding: 134.84m
- Website: https://www.selectmedical.com
Number of Employees
- Select Medical Holdings Corporation
- 4714 Gettysburg Road
- PO Box 2034
- United States
Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occup...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/23 05:52|
|End of Day Share Price||2021/06/22 00:00|
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.