MeritValue

SELECT MEDICAL HOLDINGS CORP

SEMdata completeness 88%17 fiscal years on file
The thesis, from the filings

SELECT MEDICAL HOLDINGS CORP earns about 22% on invested capital, and has bought back 6% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$6.2B1$4.61B2$4.83B3$5.19B3$5.45B3
Net income$402.2M4$159M5$243.5M6$214M6$146.2M6
Operating cash flow$401.2M7$284.8M8$582.1M9$517.9M9$346.5M9
Capital expenditure$180.5M10$190.4M11$229.2M12$222.2M12$229.2M12
Free cash flow (derived)$220.7M7$94.5M8$352.9M9$295.7M9$117.2M9
Total debt—————
Cash & equivalents$74.3M13$97.9M14$52.6M15$59.7M16$26.5M16
Diluted shares130.2M124.6M123.1M124.6M122.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$139.06
your share of equity
Profit it earned you last year
$11.92
Free cash flow it threw off
$9.56
Debt you’d be carrying
—

10 shares is a claim on $139.06 of net worth that earned you $11.92 and generated $9.56 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
22% avg · 5y
FY21 59%FY22 10%FY23 22%FY24 8%FY25 13%

It earned an average 22% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−6% shares · 5y

Share count is down 6% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth —

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-24-006385 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-006833 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001320414-26-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-24-006385 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-006833 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001320414-26-000007 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001628280-24-006385 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-006833 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001320414-26-000007 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001628280-24-006385 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-25-006833 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2023-12-31 · accession 0001320414-26-000007 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2021-12-31 · accession 0001628280-23-004854 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001628280-24-006385 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001628280-25-006833 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001320414-26-000007 (CashAndCashEquivalentsAtCarryingValue)