Select Medical Holdings Corp

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SEM : NYSE : Health Care
$11.49 -0.12 | -1.00%
Today's Range: 11.47 - 11.62
Avg. Daily Volume: 884,400
07/25/16 - 11:09 AM ET

Financial Analysis


SELECT MEDICAL HOLDINGS CORP's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. SELECT MEDICAL HOLDINGS CORP has average liquidity. Currently, the Quick Ratio is 1.38 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 19.87% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1088.33795.34
EBITDA ($mil)124.6496.61
EBIT ($mil)90.1279.27
Net Income ($mil)54.8335.06


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)85.416.59
Total Assets ($mil)4847.972987.05
Total Debt ($mil)2781.751599.61
Equity ($mil)917.94765.72


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin15.2616.47
EBITDA Margin11.4512.14
Operating Margin8.289.97
Sales Turnover0.831.04
Return on Assets3.14.1
Return on Equity16.3916.01
Debt Q1 FY16 Q1 FY15
Current Ratio1.641.45
Debt/Capital0.750.68
Interest Expense38.8521.39
Interest Coverage2.323.71


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)131.25131.09
Div / share0.00.1
EPS0.420.27
Book value / share6.995.84
Institutional Own % n/a n/a
Avg Daily Volume880587.0963882.0

Valuation


BUY. SELECT MEDICAL HOLDINGS CORP's P/E ratio indicates a significant discount compared to an average of 21.90 for the Health Care Providers & Services industry and a significant discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 1.67 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.34. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SELECT MEDICAL HOLDINGS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SEM 10.25 Peers 21.90   SEM 5.44 Peers 12.23

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SEM is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SEM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SEM 11.69 Peers 16.46   SEM NM Peers 0.95

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SEM is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SEM's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SEM 1.67 Peers 3.34   SEM 21.27 Peers 22.01

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SEM is trading at a significant discount to its peers.

 

Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SEM is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SEM 0.38 Peers 0.81   SEM 30.27 Peers 14.30

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SEM is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SEM has a sales growth rate that significantly exceeds its peers.

 

 

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