Is Select Medical overvalued?

Select Medical Interest Coverage is relatively stable at the moment as compared to the past year. The company's current value of Interest Coverage is estimated at 2.96. Calculated Tax Rate is expected to hike to 33.67 this year, although the value of Average Assets will most likely fall to nearly 3.6 B. While many traders today are more concerned about the preservation of capital over market returns, Select Medical Holdings could be one exception. We will analyze why it could be a much better year for Select Medical shareholders. In this post, I will also go over some essential variables affecting Select Medical's products, and show how it may impact the firm outlook for active traders this year.
Published over a year ago
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Reviewed by Rifka Kats

On a scale of 0 to 100, Select Medical holds a performance score of 10. The entity has a beta of 0.3201, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Select's beta means in this case. As returns on the market increase, Select Medical returns are expected to increase less than the market. However, during the bear market, the loss on holding Select Medical will be expected to be smaller as well. Although it is vital to follow Select Medical Holdings current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Select Medical Holdings technical indicators, you can presently evaluate if the expected return of 0.38% will be sustainable into the future. Please operates Select Medical maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to make a quick decision on whether Select Medical Holdings existing price patterns will revert.
The performance of Select Medical Holdings in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Select Medical's stock prices. When investing in Select Medical, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Select Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Select Medical carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Select Medical earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Select Medical dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Select one year expected dividend income is about USD0.33 per share.
As of the 25th of April 2024, Dividends Paid is likely to drop to about 60.7 M. In addition to that, Dividend Yield is likely to drop to 0.02.
Last ReportedProjected for Next Year
Dividends Paid63.9 M60.7 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.26  0.25 
Dividend Paid And Capex Coverage Ratio(3.52)(3.70)
Investing in dividend-paying stocks, such as Select Medical Holdings is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Select Medical must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Select Medical. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Select Medical's Liquidity

Select Medical financial leverage refers to using borrowed capital as a funding source to finance Select Medical Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Select Medical financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Select Medical's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Select Medical's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Select Medical's total debt and its cash.

What do experts say about Select?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

What is driving Select Medical Investor Appetite?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Select Medical has an asset utilization ratio of 124.18 percent. This denotes that the company is making $1.24 for each dollar of assets. An increasing asset utilization means that Select Medical Holdings is more efficient with each dollar of assets it utilizes for everyday operations.

Select Medical is estimated to stay under $29 in February

Risk adjusted performance is down to 0.16. It may denote a possible volatility pull down. Select Medical Holdings currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.32. However, we do advice investors to further question Select Medical Holdings expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

While some other companies within the medical care facilities industry are still a little expensive, even after the recent corrections, Select Medical may offer a potential longer-term growth to stakeholders. In closing, as of the 24th of January 2021, our ongoing 30 days buy-or-sell advice on the company is Strong Hold. We believe Select Medical is currently fairly valued with below average odds of financial distress for the next two years.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Select Medical Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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