📊 SEM Key Takeaways
Is Select Medical Holdings Corp. (SEM) a Good Investment?
SELECT MEDICAL faces significant profitability deterioration despite 5.1% revenue growth, with net income declining 31.8% YoY and net margins compressing to 2.7%. Tight liquidity (1.04x current ratio, only $26.5M cash) combined with elevated leverage ($1.8B debt) and historically weak returns (8.6% ROE, 2.5% ROA) indicate structural challenges in the hospital services segment, likely from reimbursement pressure and rising operational costs.
Why Buy Select Medical Holdings Corp. Stock? SEM Key Strengths
- Positive revenue growth of 5.1% YoY demonstrates market demand
- Operating cash flow of $346.5M supports positive free cash flow of $117.2M
- Interest coverage of 6.6x indicates current debt service capacity
SEM Stock Risks: Select Medical Holdings Corp. Investment Risks
- Net income declined 31.8% YoY despite revenue growth, indicating margin compression and operational deterioration
- Critically low cash position ($26.5M) relative to $5.9B asset base creates liquidity vulnerability
- Persistently thin operating and net margins (6.2% and 2.7% respectively) with weak returns on equity and assets (8.6% ROE, 2.5% ROA)
- Elevated leverage (1.06x debt-to-equity, $1.8B long-term debt) with tight current liquidity creates refinancing risk
- Limited insider activity (1 Form 4 in 90 days) may signal limited confidence
Key Metrics to Watch
- Operating margin trend and whether profitability can stabilize
- Free cash flow sustainability and cash conversion cycle
- Debt levels and refinancing needs given tight liquidity position
Select Medical Holdings Corp. (SEM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.2% FCF margin may limit capital allocation flexibility.
SEM Profit Margin, ROE & Profitability Analysis
SEM vs Healthcare Sector: How Select Medical Holdings Corp. Compares
How Select Medical Holdings Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Select Medical Holdings Corp. Stock Overvalued? SEM Valuation Analysis 2026
Based on fundamental analysis, Select Medical Holdings Corp. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Select Medical Holdings Corp. Balance Sheet: SEM Debt, Cash & Liquidity
SEM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Select Medical Holdings Corp.'s revenue has declined by 12% over the 5-year period, indicating business contraction. The most recent EPS of $1.91 reflects profitable operations.
SEM Revenue Growth, EPS Growth & YoY Performance
SEM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | $28.8M | $0.23 |
| Q2 2025 | $1.3B | $40.6M | $0.32 |
| Q1 2025 | $1.3B | $56.7M | $0.44 |
| Q3 2024 | $1.7B | $48.2M | $0.38 |
| Q2 2024 | $1.7B | $70.8M | $0.60 |
| Q1 2024 | $1.7B | $70.8M | $0.56 |
| Q3 2023 | $1.6B | $27.2M | $0.21 |
| Q2 2023 | $1.6B | $49.1M | $0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Select Medical Holdings Corp. Dividends, Buybacks & Capital Allocation
SEM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Select Medical Holdings Corp. (CIK: 0001320414)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SEM
What is the AI rating for SEM?
Select Medical Holdings Corp. (SEM) has an AI rating of SELL with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SEM's key strengths?
Claude: Positive revenue growth of 5.1% YoY demonstrates market demand. Operating cash flow of $346.5M supports positive free cash flow of $117.2M.
What are the risks of investing in SEM?
Claude: Net income declined 31.8% YoY despite revenue growth, indicating margin compression and operational deterioration. Critically low cash position ($26.5M) relative to $5.9B asset base creates liquidity vulnerability.
What is SEM's revenue and growth?
Select Medical Holdings Corp. reported revenue of $5.5B.
Does SEM pay dividends?
Select Medical Holdings Corp. pays dividends, with $31.4M distributed to shareholders in the trailing twelve months.
Where can I find SEM SEC filings?
Official SEC filings for Select Medical Holdings Corp. (CIK: 0001320414) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SEM's EPS?
Select Medical Holdings Corp. has a diluted EPS of $1.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SEM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Select Medical Holdings Corp. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SEM stock overvalued or undervalued?
Valuation metrics for SEM: ROE of 8.6% (sector avg: 15%), net margin of 2.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SEM stock in 2026?
Our dual AI analysis gives Select Medical Holdings Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SEM's free cash flow?
Select Medical Holdings Corp.'s operating cash flow is $346.5M, with capital expenditures of $229.2M. FCF margin is 2.2%.
How does SEM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 2.7% (avg: 12%), ROE 8.6% (avg: 15%), current ratio 1.04 (avg: 2).