Select Medical Holdings Corporation

Select Medical Holdings Corporation

SEMยทNYSE

$16.49

-0.12%
HealthcareMedical - Care Facilities

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. The company's Critical Illness Recovery Hospital segment consists of hospitals that provide services for heart failure, infectious disease, respiratory failure and pulmonary disease, surgery requiring prolonged recovery, renal disease, neurological events, and trauma. Its Rehabilitation Hospital segment offers therapy and rehabilitation treatments, including rehabilitative services for brain and spinal cord injuries, strokes, amputations, neurological disorders, orthopedic conditions, pediatric congenital or acquired disabilities, and cancer. The company's Outpatient Rehabilitation segment operates rehabilitation clinics that provide physical, occupational, and speech rehabilitation programs and services; and specialized programs, such as functional programs for work related injuries, hand therapy, post-concussion rehabilitation, pediatric and cancer rehabilitation, and athletic training services. Its Concentra segment operates and provides occupational health centers and contract services at employer worksites that deliver occupational medicine, consumer health, physical therapy, and wellness services. As of December 31, 2021, the company operated 104 critical illness recovery hospitals in 28 states; 30 rehabilitation hospitals in 12 states; 1,881 outpatient rehabilitation clinics in 38 states and the District of Columbia; and 518 occupational health centers in 41 states, and 134 onsite clinics at employer worksites states. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.

At a Glance

Live Snapshot
Market Cap$2.04B
EPS1.1800
P/E Ratio13.97
Earnings Date07/30/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 14.0).

Valuation inputs: P/E 14.0, earnings yield +7.2%, momentum -0.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +8.6%, ROIC +5.2%).

Profitability stack: net margin +2.7%, ROE +8.6%, ROIC +5.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +65.2%, momentum -0.1%, net margin +2.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Select Medical Holdings Corporation Market vs Earnings Trajectory

SEM ยท NYSE

Loading price and EPS data...

Select Medical Holdings Corporation

Select Medical Holdings Corporation Fair Value Envelope

SEM ยท NYSE

Our analysis suggests that SEM has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $16.49, this represents a potential HIDDEN relative to our calculated worth for Select Medical Holdings Corporation.

Intrinsic Value
Current Price: $16.49
3Y-4.0%
5Y-39.0%
10Y+34.0%
3Y-14.0%
5Y-1.0%
10Y+27.0%
3Y-8.0%
5Y-44.0%
10Y+27.0%
3Y+22.0%
5Y-66.0%
10Y-
3Y+305.0%
5Y-57.0%
10Y+107.0%
3Y-24.0%
5Y-24.0%
10Y+18.0%
Select Medical Holdings Corporation

Select Medical Holdings Corporation Profit Bridge

SEM ยท NYSE
Revenue5.45B
Cost of Goods Sold (4.82B)
Gross Profit629.29M
Operating Expenses (294.72M)
Operating Income334.58M
Interest Expense (117.58M)
Other Income/Expense-61.83M
Pretax Income272.75M
Income Tax (58.22M)
Net Income146.22M
Net Income
146.22M

Profitability Analysis

Gross Margin

11.5%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

6.1%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

2.7%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

21.3%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

11.54%
Gross Profit Margin
-6%
3Y-
5Y-22.0%
10Y-20.0%
6.14%
Operating Profit Margin
19%
3Y-4.0%
5Y-40.0%
10Y-12.0%
2.68%
Net Profit Margin
-35%
3Y+7.0%
5Y-43.0%
10Y-
8.57%
Return on Equity
-33%
3Y-40.0%
5Y-65.0%
10Y-33.0%
2.50%
Return on Assets
-35%
3Y+20.0%
5Y-26.0%
10Y+7.0%
5.16%
Return on Invested Capital
26%
3Y+15.0%
5Y-22.0%
10Y+10.0%
SEM

Select Medical Holdings Corporation Cash Conversion Engine

SEM ยท NYSE
Net Income146.22M
Depreciation & Amortization140.30M
Stock-Based Compensation16.70M
Change in Working Capital-59.68M
Others72.27M
Capital Expenditures36.27M
Free Cash Flow382.74M

Cash Flow Quality Analysis

FCF Conversion Rate

261.8%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

10.5%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-29.1%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$59.68M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

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Select Medical Holdings Corporation Funding & Solvency Profile

SEM ยท NYSE
Cash & Cash Equivalents25.68M
Net Receivables949.48M
Inventory0.00
Other Current Assets136.93M
Total Current Assets1 B
Property, Plant & Equipment2.04B
Goodwill & Intangible Assets2.48B
Long-Term Investments0.00
Other Non-Current Assets412.31M
Total Non-Current Assets2 B
Total Assets
6.04B

Financial Health Analysis

Current Ratio

1.15x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

1.87x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

142 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

18% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Select Medical Holdings Corporation Street Expectations Map

SEM ยท NYSE

Wall Street analysts project that SEM stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 17.75, with estimates ranging from a low of 16.50 to a high of 19.00.

Lowest Target
16.50
0.06%
Consensus Target
17.75
7.64%
Highest Target
19.00
15.22%

The consensus 1-year price target stands at 17.75, with estimates ranging from a low of 16.50 to a high of 19.00.

Analyst Consensus Analysis

Upside Potential

+7.6%

Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.

Analyst Agreement

14.1% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

High

Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Select Medical Holdings Corporation Insider Positioning

SEM ยท NYSE

During the last 12 months, insiders have purchased $18K and sold $2.14M worth of SEM shares, resulting in $2.12M of net selling activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

1.3K

18.00K

Sold

12.2K

169.03K

Net Activity

-151K

-$151K

9-12 Months

Bought

0

0.00

Sold

156.7K

1.97M

Net Activity

-2.0M

-$1.97M

Top Buyers

1
FWH

Frist William H.

Director

1.3K sharesโ€ข1 transactions

$18K

Top Sellers

1
CDS

Chernow David S

Director, Officer: Ceo

49.1K sharesโ€ข1 transactions

$617K

2
JMF

Jackson Martin F

Officer: Executive Vice President

29.5K sharesโ€ข1 transactions

$370K

3
MTP

Mullin Thomas P

Officer: Co-President

22.0K sharesโ€ข1 transactions

$277K

4
SJA

Saich John A.

Officer: Executive Vice President

21.7K sharesโ€ข1 transactions

$273K

5
TME

Tarvin Michael E

Officer: Executive Vice President

19.6K sharesโ€ข1 transactions

$247K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $2.12M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.01:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

0.40%
Dividend Yield
-5%
3Y-57.0%
5Y-
10Y+491.0%
ย 

sem Dividend History

SEM
10Y CAGR 23%
Latest $0.062
Annual $0.3125
Stable dividend payments
Last Period: +0%