NYSE:SEM

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Select Medical Holdings

Executive Summary

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


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SEM's weekly volatility has decreased from 11% to 6% over the past year.


Market Performance


7 Day Return

-1.0%

SEM

-5.4%

US Healthcare

-0.5%

US Market


1 Year Return

10.5%

SEM

11.5%

US Healthcare

18.3%

US Market

Return vs Industry: SEM underperformed the US Healthcare industry which returned 12.3% over the past year.

Return vs Market: SEM underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

SEMIndustryMarket
7 Day-1.0%-5.4%-0.5%
30 Day7.3%2.4%3.6%
90 Day26.7%9.0%5.6%
1 Year10.5%10.5%13.0%11.5%21.0%18.3%
3 Year44.5%44.5%40.5%34.6%45.2%35.6%
5 Year106.0%106.0%76.0%63.3%89.8%68.8%

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

Valuation

Is Select Medical Holdings undervalued compared to its fair value and its price relative to the market?

15.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEM ($24.86) is trading above our estimate of fair value ($5.48)

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 (15.6x) compared to the US Healthcare industry average (23.2x).

PE vs Market: SEM is good value based on its PE Ratio (15.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SEM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SEM's PB Ratio (3.2x) is in line with the US Healthcare industry average.


Next Steps

Future Growth

How is Select Medical Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEM's earnings are forecast to decline over the next 3 years (-3% per year).

Earnings vs Market: SEM's earnings are forecast to decline over the next 3 years (-3% per year).

High Growth Earnings: SEM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SEM's revenue (4.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SEM's revenue (4.8% 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 low in 3 years time (16.3%).


Next Steps

Past Performance

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

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEM has high quality earnings.

Growing Profit Margin: SEM's current net profit margins (3.8%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: SEM's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: SEM's earnings growth over the past year (51.3%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: SEM earnings growth over the past year (51.3%) exceeded the Healthcare industry 22.6%.


Return on Equity

High ROE: SEM's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is Select Medical Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SEM's short term assets ($1.6B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: SEM's short term assets ($1.6B) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: SEM's debt to equity ratio (192.4%) is considered high.

Reducing Debt: SEM's debt to equity ratio has reduced from 210.1% to 192.4% over the past 5 years.

Debt Coverage: SEM's debt is well covered by operating cash flow (29.5%).

Interest Coverage: SEM's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SEM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SEM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SEM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SEM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SEM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

21.5yrs

Average management tenure


CEO

David Chernow (63 yo)

6.83yrs

Tenure

US$7,681,629

Compensation

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 H...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD7.68M) is above average for companies of similar size in the US market ($USD5.22M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Ortenzio
Co-Founder & Executive Chairman6.83yrsUS$7.75m6.87%
$ 230.3m
David Chernow
President & CEO6.83yrsUS$7.68m0.66%
$ 22.1m
Rocco Ortenzio
Co-Founder & Vice Chairman6.83yrsUS$5.40m7.95%
$ 266.4m
Martin Jackson
Executive VP & CFO21.5yrsUS$4.63m1.22%
$ 40.9m
Michael Tarvin
Executive VP23.75yrsUS$3.24m0.27%
$ 8.9m
Scott Romberger
Senior VP19.92yrsUS$380.36k0.11%
$ 3.7m
John Saich
Executive VP & Chief Administrative Officer2.08yrsno data0.38%
$ 12.6m
Robert Breighner
VP of Compliance & Audit Services and Corporate Compliance Officerno datano data0.025%
$ 821.5k
Joel Veit
Senior VP & Treasurerno datano datano data

21.5yrs

Average Tenure

60.5yo

Average Age

Experienced Management: SEM's management team is seasoned and experienced (21.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Ortenzio
Co-Founder & Executive Chairman6.83yrsUS$7.75m6.87%
$ 230.3m
Rocco Ortenzio
Co-Founder & Vice Chairman6.83yrsUS$5.40m7.95%
$ 266.4m
Bryan Cressey
Independent Director15.75yrsUS$257.90k0.47%
$ 15.8m
Russell Carson
Independent Lead Director5.83yrsUS$256.40k1.49%
$ 49.9m
Thomas Scully
Independent Director16.75yrsUS$252.70k0.13%
$ 4.3m
Daniel Thomas
Independent Director1.33yrsUS$429.40k0.022%
$ 745.8k
William Frist
Independent Director10.5yrsUS$288.30k0.18%
$ 6.0m
Marilyn Tavenner
Independent Director2yrsUS$280.90k0.022%
$ 745.8k
James Ely
Independent Director12yrsUS$285.90k0.092%
$ 3.1m

6.8yrs

Average Tenure

68yo

Average Age

Experienced Board: SEM's board of directors are considered experienced (6.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Select Medical Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Select Medical Holdings Corporation
  • Ticker: SEM
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$3.350b
  • Shares outstanding: 134.76m
  • Website: https://www.selectmedical.com

Number of Employees


Location

  • Select Medical Holdings Corporation
  • 4714 Gettysburg Road
  • PO Box 2034
  • Mechanicsburg
  • Pennsylvania
  • 17055
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEMNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2009
S24DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2009

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 00:52
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.