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

Universal Health Services, Inc.

Chemed Corp.

HCA Healthcare, Inc.

Community Health Systems, Inc.

National HealthCare Corp.

Tenet Healthcare Corp.

Surgery Partners, Inc.

Brookdale Senior Living, Inc.

Select Medical Holdings Corp.

biote Corp.

Premier, Inc.

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.

-3.38%

-0.32

43.81%

S&P 500

13.68%

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)

1.40

Tax Ratio

24.05%

Dividend Payout Ratio

21.46%

Pledged Shares

Institutional Holding

91.42%

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

11.83

EV to EBITDA

8.33

EV to Capital Employed

1.08

EV to Sales

0.73

PEG Ratio

Dividend Yield

1.56%

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

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.09% (YoY

NET SALES(Q)

Highest at USD 1,396.63 MM

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 346.46 MM

NET SALES(9M)

At USD 4,099.66 MM has Grown at -15.18%

NET PROFIT(Q)

At USD 19.55 MM has Fallen at -33.8%

CASH AND EQV(HY)

Lowest at USD 86.58 MM

DIVIDEND PER SHARE(HY)

Lowest at USD 6.47

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

Net Sales

Highest at USD 1,396.63 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by -2.09% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD 346.46 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 19.55 MM has Fallen at -33.8%

over average net sales of the previous four periods of USD 29.53 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 86.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at USD 6.47

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Non Operating Income

Highest at USD 0.3 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income