Select Medical Holdings Corp

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SEM : NYSE : Health Care
$13.50 up 0.29 | 2.20%
Today's Range: 12.98 - 13.61
Avg. Daily Volume: 723,400
09/30/16 - 4:05 PM ET

Financial Analysis


SELECT MEDICAL HOLDINGS CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SELECT MEDICAL HOLDINGS CORP has average liquidity. Currently, the Quick Ratio is 1.29 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 18.62% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1097.63887.07
EBITDA ($mil)137.26111.57
EBIT ($mil)101.0589.73
Net Income ($mil)33.9436.94


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)78.4225.19
Total Assets ($mil)4838.354341.34
Total Debt ($mil)2744.32476.1
Equity ($mil)956.08805.93


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin16.4616.14
EBITDA Margin12.512.57
Operating Margin9.2110.11
Sales Turnover0.880.74
Return on Assets3.042.86
Return on Equity15.4215.41
Debt Q2 FY16 Q2 FY15
Current Ratio1.541.54
Debt/Capital0.740.75
Interest Expense44.3325.29
Interest Coverage2.283.55


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)131.47131.37
Div / share0.00.0
EPS0.260.28
Book value / share7.276.13
Institutional Own % n/a n/a
Avg Daily Volume752681.0802702.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.69 for the Health Care Providers & Services industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 1.82 indicates a discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 3.14. 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 11.85 Peers 20.69   SEM 5.60 Peers 12.71

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 14.27 Peers 15.78   SEM NM Peers 0.85

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SEM is trading at a valuation on par with 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 1.82 Peers 3.14   SEM 17.89 Peers 27.83

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.

 

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

However, SEM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SEM 0.41 Peers 0.78   SEM 32.19 Peers 14.36

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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