Select Medical Holdings Corp. (SEM) intrinsic value & 10-year financials

Select Medical Holdings Corp. (SEM) has a Graham intrinsic value of $15.01 per share. Over the last 10 fiscal years revenue grew 2.9% a year to $5.5B, with an average return on invested capital of 8.3%.

Graham intrinsic value
$15.01
Revenue (FY2025)
$5.5B
Revenue growth (10-yr CAGR)
2.9%
ROIC (10-yr avg)
8.3%
Free cash flow (FY2025)
$117.2M

SEM 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $5.5B $146.2M $1.16 $117.2M 6.2% 7.1%
FY2024 $5.2B $214.0M $1.66 $295.7M 5.2% 5.5%
FY2023 $6.7B $243.5M $1.91 $352.9M 8.3% 8.6%
FY2022 $6.3B $159.0M $1.23 $94.5M 6.4% 6.1%
FY2021 $6.2B $402.2M $2.98 $220.7M 11.5% 12.8%
FY2020 $5.5B $259.0M $1.93 $881.6M 10.3% 10.3%
FY2019 $5.5B $148.4M $1.10 $288.1M 8.7% 8.5%
FY2018 $5.1B $137.8M $1.02 $326.9M 8.2% 8.1%
FY2017 $4.4B $177.2M $1.33 $4.9M 8.2% 10.5%
FY2016 $4.2B $115.4M $0.87 $185.0M 7.1% 6.0%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

SELECT MEDICAL HOLDINGS CORP has demonstrated mature, steady growth, with revenue compounding at 2.9% annually over the past decade.

SELECT MEDICAL HOLDINGS CORP returns on capital have been average, hovering around 8.3% ROIC over the decade.

SELECT MEDICAL HOLDINGS CORP has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, SELECT MEDICAL HOLDINGS CORP is modeled at 3.2% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $15.01 per share.

SEM stock: frequently asked questions

What is the intrinsic value of Select Medical Holdings Corp. (SEM) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 3.2% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, SEM's intrinsic value is about $15.01 per share.

How fast has Select Medical Holdings Corp. grown?

Revenue went from $4.2B in fiscal 2016 to $5.5B in fiscal 2025, a compound annual growth rate of 2.9%. Net income was $146.2M in fiscal 2025.

Does Select Medical Holdings Corp. generate free cash flow?

Select Medical Holdings Corp. generated $117.2M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is SEM's return on invested capital?

Average ROIC over the last 10 fiscal years was 8.3%, and average return on equity was 19.4%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this SEM data come from?

From Select Medical Holdings Corp.'s annual 10-K filings on SEC EDGAR, most recently filed Apr 30, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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