📊 SEM Key Takeaways
Is Select Medical Holdings Corp. (SEM) a Good Investment?
Select Medical faces deteriorating fundamentals despite modest revenue growth of 5.1% YoY. Net income declined 31.8% YoY while the company generated negative free cash flow of -$21.0M, indicating operational stress and cash burn. Combined with weak interest coverage (1.9x), minimal cash reserves ($25.7M), and extremely low returns on assets (0.7%) and equity (2.5%), the company lacks the financial strength to support its debt burden and execute sustainable operations.
Select Medical Holdings Corp. Key Strengths (SEM)
- Positive revenue growth of 5.1% YoY demonstrates market demand in healthcare services sector
- Maintained positive operating cash flow of $37.9M despite operational challenges
- Debt-to-equity ratio of 1.05x shows moderate leverage levels for the sector
SEM Stock Risks: Select Medical Holdings Corp. Investment Risks
- Net income collapsed 31.8% YoY with EPS down 30.1%, indicating severe margin compression and operational deterioration
- Negative free cash flow of -$21.0M shows company is burning cash despite positive OCF, unsustainable long-term
- Interest coverage ratio of only 1.9x leaves minimal buffer for debt service; high refinance risk
- Cash position of $25.7M is critically low relative to $1.8B long-term debt, creating liquidity vulnerability
- ROE of 2.5% and ROA of 0.7% indicate extremely poor capital efficiency and value destruction
Key Metrics to Watch
- Quarterly net income trend and operating margin recovery
- Free cash flow generation and cash balance sustainability
- Interest coverage ratio and debt refinancing activities
- Revenue growth sustainability and profitability recovery path
Select Medical Holdings Corp. (SEM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Select Medical Holdings Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| Q1 2026 | $1.4B | $44.0M | $0.35 |
| 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 |
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 grade of C with 78% 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 in healthcare services sector. Maintained positive operating cash flow of $37.9M despite operational challenges.
What are the risks of investing in SEM?
Claude: Net income collapsed 31.8% YoY with EPS down 30.1%, indicating severe margin compression and operational deterioration. Negative free cash flow of -$21.0M shows company is burning cash despite positive OCF, unsustainable long-term.
What is SEM's revenue and growth?
Select Medical Holdings Corp. reported revenue of $1.4B.
Does SEM pay dividends?
Select Medical Holdings Corp. pays dividends, with $7.8M 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 $0.35.
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 grade reflects both perspectives for balanced insights.
What is SEM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Select Medical Holdings Corp. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SEM stock overvalued or undervalued?
Valuation metrics for SEM: ROE of 2.5% (sector avg: 15%), net margin of 3.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SEM's AI grade for 2026?
Our dual AI analysis gives Select Medical Holdings Corp. a combined C grade 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 $37.9M, with capital expenditures of $58.9M. FCF margin is -1.5%.
How does SEM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 3.1% (avg: 12%), ROE 2.5% (avg: 15%), current ratio 1.15 (avg: 2).