Select Medical Holdings Corp. (SEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chemed Corp.

Tenet Healthcare Corp.

Universal Health Services, Inc.

National HealthCare Corp.

Surgery Partners, Inc.

Brookdale Senior Living, Inc.

Select Medical Holdings Corp.

HCA Healthcare, Inc.

Premier, Inc.

Community Health Systems, Inc.

biote Corp.

Why is Select Medical Holdings Corp. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -3.46% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 10.76% signifying low profitability per unit of total capital (equity and debt)

Negative results in Jun 25

NET PROFIT(HY) At USD 95.29 MM has Grown at -43.24%
ROCE(HY) Lowest at 8.15%
NET SALES(Q) At USD 1,339.58 MM has Fallen at -13.39%

With ROCE of 11.80%, it has a very expensive valuation with a 1.07 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.54%, its profits have fallen by -21.5%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.54% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hospital)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Select Medical Holdings Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Select Medical Holdings Corp.

9.81%

-0.32

43.81%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.29%

EBIT Growth (5y)

-6.87%

EBIT to Interest (avg)

3.04

Debt to EBITDA (avg)

4.83

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

1.44

Tax Ratio

24.05%

Dividend Payout Ratio

21.46%

Pledged Shares

Institutional Holding

94.60%

ROCE (avg)

10.76%

ROE (avg)

22.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.18

EV to EBIT

11.84

EV to EBITDA

8.34

EV to Capital Employed

1.09

EV to Sales

0.73

PEG Ratio

Dividend Yield

1.55%

ROCE (Latest)

9.17%

ROE (Latest)

12.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NET SALES(Q)

Highest at USD 1,421.48 MM

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 387.78 MM

RAW MATERIAL COST(Y)

Grown by 11.05% (YoY

CASH AND EQV(HY)

Lowest at USD 52.21 MM

Here's what is working for Select Medical Holdings Corp.

Net Sales

Highest at USD 1,421.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Depreciation

Highest at USD 37.67 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Select Medical Holdings Corp.

Operating Cash Flow

Lowest at USD 387.78 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 52.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 11.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales