NYSE:SEM

Stock Analysis Report

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.

Snowflake

Fundamentals

Good value with limited growth.


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


Market Performance


7 Day Return

-0.6%

NYSE:SEM

-1.5%

US Healthcare

2.1%

US Market


1 Year Return

-18.0%

NYSE:SEM

-7.3%

US Healthcare

-0.04%

US Market

SEM underperformed the Healthcare industry which returned -5.6% over the past year.

SEM underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

SEMIndustryMarket
7 Day-0.6%-1.5%2.1%
30 Day-4.3%-3.7%-3.2%
90 Day9.0%0.7%2.8%
1 Year-18.0%-18.0%-5.9%-7.3%2.2%-0.04%
3 Year38.9%38.9%28.5%23.2%41.5%32.3%
5 Year15.7%14.1%64.8%55.1%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Select Medical Holdings's share price is below the future cash flow value, and 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 Based on Earnings

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

Select Medical Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Select Medical Holdings is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

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

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Select Medical Holdings's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Select Medical Holdings's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).

Select Medical Holdings's revenue growth is positive but not above the United States of America market average.

Select Medical Holdings's earnings growth is expected to exceed the United States of America market average.

Select Medical Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Select Medical Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 is negative, it can't be compared to the 5-year average.

Select Medical Holdings's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

Select Medical Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Select Medical Holdings used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Select Medical Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Select Medical Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Select Medical Holdings's level of debt (183.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (214.3% vs 183.3% today).

Debt is not well covered by operating cash flow (12.2%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

20.3yrs

Average management tenure


CEO

David Chernow (62yo)

5.6yrs

Tenure

US$8,201,031

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

David's remuneration is higher than average for companies of similar size in United States of America.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

20.3yrs

Average Tenure

59.5yo

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.


Board Age and Tenure

7.4yrs

Average Tenure

67.5yo

Average Age

The tenure for the Select Medical Holdings board of directors is about average.


Insider Trading

Select Medical Holdings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$54,62506 Aug 19
Robert Breighner
EntityIndividual
Role
Chief Compliance Officer
VP of Compliance & Audit Services and Corporate Compliance Officer
Shares3,589
Max PriceUS$15.22
BuyUS$4,340,84318 Mar 19
Rocco Ortenzio
EntityIndividual
Role
Vice Chairman
Co-Founder & Vice Chairman
Shares306,189
Max PriceUS$14.25

Ownership Breakdown


Management Team

  • Rocco Ortenzio (86yo)

    Co-Founder & Vice Chairman

    • Tenure: 5.6yrs
    • Compensation: US$5.64m
  • David Chernow (62yo)

    President & CEO

    • Tenure: 5.6yrs
    • Compensation: US$8.20m
  • Bob Ortenzio (61yo)

    Co-Founder & Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: US$8.22m
  • Marty Jackson (64yo)

    Executive VP & CFO

    • Tenure: 20.3yrs
    • Compensation: US$4.95m
  • Michael Tarvin (58yo)

    Executive VP

    • Tenure: 22.5yrs
    • Compensation: US$3.44m
  • Scott Romberger (58yo)

    Senior VP

    • Tenure: 18.7yrs
    • Compensation: US$380.36k
  • Robert Breighner (50yo)

    VP of Compliance & Audit Services and Corporate Compliance Officer

    • Tenure: 0.0yrs
  • Joel Veit

    Senior VP & Treasurer

    • Tenure: 0.0yrs
  • John Saich (50yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 0.8yrs

Board Members

  • Bryan Cressey (70yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$317.00k
  • Russell Carson (76yo)

    Lead Director

    • Tenure: 4.6yrs
    • Compensation: US$297.00k
  • Rocco Ortenzio (86yo)

    Co-Founder & Vice Chairman

    • Tenure: 5.6yrs
    • Compensation: US$5.64m
  • Bob Ortenzio (61yo)

    Co-Founder & Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: US$8.22m
  • Tom Scully (61yo)

    Director

    • Tenure: 15.5yrs
    • Compensation: US$300.00k
  • Dan Thomas (60yo)

    Director

    • Tenure: 0.1yrs
  • Leo Swergold (78yo)

    Independent Director

    • Tenure: 14.0yrs
    • Compensation: US$320.00k
  • Bill Frist (67yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: US$308.00k
  • Marilyn Tavenner (68yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$180.80k
  • James Ely (61yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$325.00k

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$2.169b
  • Shares outstanding: 135.62m
  • 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 Analysis2019/08/23 00:12
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.