Select Medical Holdings Corp
NYSE:SEM

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Select Medical Holdings Corp Logo
Select Medical Holdings Corp
NYSE:SEM
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Price: 39.67 USD 1.54% Market Closed
Market Cap: 5.1B USD
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Intrinsic Value

The intrinsic value of one SEM stock under the Base Case scenario is 51.46 USD. Compared to the current market price of 39.67 USD, Select Medical Holdings Corp is Undervalued by 23%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

SEM Intrinsic Value
51.46 USD
Undervaluation 23%
Intrinsic Value
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Select Medical Holdings Corp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Select Medical Holdings Corp

Current Assets 1.4B
Cash & Short-Term Investments 191.5m
Receivables 1.1B
Other Current Assets 152.7m
Non-Current Assets 6.6B
PP&E 2.4B
Intangibles 3.9B
Other Non-Current Assets 369.4m
Current Liabilities 1.2B
Accounts Payable 938.9m
Accrued Liabilities 249.8m
Short-Term Debt 14.2m
Other Current Liabilities 42.8m
Non-Current Liabilities 4.8B
Long-Term Debt 3.1B
Other Non-Current Liabilities 1.7B
Efficiency

Earnings Waterfall
Select Medical Holdings Corp

Revenue
8.8B USD
Cost of Revenue
-7.5B USD
Gross Profit
1.3B USD
Operating Expenses
-498m USD
Operating Income
801.1m USD
Other Expenses
-441.9m USD
Net Income
359.2m USD

Free Cash Flow Analysis
Select Medical Holdings Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3 2024, Select Medical reported a 6% revenue growth to $1.75 billion, driven by a 14% increase in inpatient rehab revenue. Adjusted EBITDA rose 6% to $205.5 million, with a margin of 11.7%. The critical illness division improved, with adjusted EBITDA up 9% despite $2.5 million in start-up losses. Guidance for 2024 projects revenue of $6.95-$7.15 billion and EBITDA of $865-$885 million. The company aims for a leverage ratio of approximately 3x, maintaining flexibility for future capital deployment. Additionally, a dividend of $0.125 per share is set for November 2024.

What is Earnings Call?
Fundamental Scores

SEM Profitability Score
Profitability Due Diligence

Select Medical Holdings Corp's profitability score is 51/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Positive ROE
Positive Free Cash Flow
Positive 3-Years Revenue Growth
51/100
Profitability
Score

Select Medical Holdings Corp's profitability score is 51/100. The higher the profitability score, the more profitable the company is.

SEM Solvency Score
Solvency Due Diligence

Select Medical Holdings Corp's solvency score is 33/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Average D/E
Average Altman Z-Score
33/100
Solvency
Score

Select Medical Holdings Corp's solvency score is 33/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

SEM Price Targets Summary
Select Medical Holdings Corp

Wall Street analysts forecast SEM stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for SEM is 46.31 USD with a low forecast of 40.4 USD and a high forecast of 52.5 USD.

Lowest
Price Target
40.4 USD
2% Upside
Average
Price Target
46.31 USD
17% Upside
Highest
Price Target
52.5 USD
32% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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Shareholder Yield

Current shareholder yield for SEM is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Ownership

SEM Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
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12 Months
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Profile

Select Medical Holdings Corp Logo
Select Medical Holdings Corp

Country

United States of America

Industry

Health Care

Market Cap

5.1B USD

Dividend Yield

1.26%

Description

Select Medical Holdings Corp. engages in the provision of medical rehabilitation services. The company is headquartered in Mechanicsburg, Pennsylvania and currently employs 35,900 full-time employees. The company went IPO on 2009-09-25. The firm operates through four business segments: Critical Illness Recovery Hospital, which consists of hospitals that serves the needs of patients recovering from critical illnesses; Rehabilitation Hospital, which consists of hospitals that serves patients that require intensive physical rehabilitation care; Outpatient Rehabilitation, which consists of clinics that provide physical, occupational, and speech rehabilitation services, and Concentra, which consists of occupational health centers that provides workers’ compensation injury care, physical therapy, and consumer health services and onsite clinics. The company operates approximately 104 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals in 12 states, and 1,881 outpatient rehabilitation clinics in 38 states.

Contact

PENNSYLVANIA
Mechanicsburg
4714 Gettysburg Rd
+17179721100.0
www.selectmedical.com

IPO

2009-09-25

Employees

35 900

Officers

Co-Founder & Executive Chairman
Mr. Robert A. Ortenzio
Chief Executive Officer
Mr. David S. Chernow
Co-Founder & Chairman Emeritus
Mr. Rocco A. Ortenzio
Executive VP & CFO
Mr. Michael F. Malatesta
Senior Executive VP, General Counsel & Secretary
Mr. Michael E. Tarvin
Senior Executive Vice President of Strategic Finance & Operations
Mr. Martin F. Jackson
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Co-President
Mr. Thomas P. Mullin
Senior VP, Controller & Chief Accounting Officer
Mr. Christopher S. Weigl
Executive VP & Chief Information Officer
Mr. Brian R. Rusignuolo
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See Also

Discover More
What is the Intrinsic Value of one SEM stock?

The intrinsic value of one SEM stock under the Base Case scenario is 51.46 USD.

Is SEM stock undervalued or overvalued?

Compared to the current market price of 39.67 USD, Select Medical Holdings Corp is Undervalued by 23%.

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