Is SEM a high-quality business?

AlphaMadera's AlphaQuality grade scores Select Medical Holdings Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how SEM compares to a Buffett-style quality bar.

What is Select Medical Holdings Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to SEM based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes SEM a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

SEM - Select Medical Holdings Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $17.75 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C- 46.0 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D 37.0

5yr Avg ROIC 7.2% 46/100
Operating Margin Trend -1.19 pp/yr 16/100

Capital Efficiency

Weight: 15%

B+ 77.9

5yr Avg ROE 13.7% 76/100
5yr Share-Count CAGR -1.3% 82/100

Growth Quality

Weight: 15%

F 22.1

5yr Revenue CAGR -3.2% 14/100
5yr EPS CAGR -20.7% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

B 69.1

5yr FCF Margin 5.6% 52/100
5yr FCF/NI Conversion 1.55x 90/100

Balance Sheet

Weight: 20%

F 22.6

Net Debt / EBITDA 6.93x 1/100
Interest Coverage (EBIT/Int) 3.32x 48/100
Altman Z-Score 1.66 32/100

Stability

Weight: 15%

C+ 57.7

EPS Volatility (σ/μ) 0.43 39/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 1 new buy; 2 trimmed; 2 full exits.

Holders: 3
Avg Δ position: -42.6%
New buys: 1
Full exits: 2

Soros new
Dalio sold -100%
Wood sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.