Select Medical Receives Board Approval for Possible Spin-Off of Concentra
January 4, 2024
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Concentra is one of the largest providers of occupational medicine and physical therapy services in the nation. The board’s approval sets in motion the process of assessing the financial and strategic benefits of a potential spin-off to Select Medical ($NYSE:SEM) shareholders. Select Medical is a publicly-traded healthcare services company headquartered in Mechanicsburg, Pennsylvania. The company specializes in providing post-acute care services to the rehabilitation and long-term acute care industries.
Stock Price
On Wednesday, SELECT MEDICAL received board approval for a possible spin-off of Concentra, its occupational health and primary care subsidiary. This news caused the stock to open at $23.9 and close at $23.5, a decrease of 1.8% from the previous closing price of $23.9. If the spin-off is successful, it will enable both companies to focus more intently on their respective core businesses and create value for shareholders. The board will now be considering the strategic and financial implications of the proposed spin-off. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Select Medical. More…
| Total Revenues | Net Income | Net Margin |
| 6.59k | 216.55 | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Select Medical. More…
| Operations | Investing | Financing |
| 415.16 | -256.13 | -189.82 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Select Medical. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.68k | 6.13k | 9.89 |
Key Ratios Snapshot
Some of the financial key ratios for Select Medical are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | 0.7% | 8.4% |
| FCF Margin | ROE | ROA |
| 2.9% | 27.4% | 4.5% |
Analysis
As GoodWhale, we have conducted an analysis of SELECT MEDICAL‘s wellbeing. Our Star Chart shows that SELECT MEDICAL is strong in dividend, medium in growth, profitability and weak in asset. We classify SELECT MEDICAL as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given this information, we think that value-minded investors may be interested in such a company as it has a high health score of 8/10 considering its cashflows and debt. This suggests that SELECT MEDICAL is capable to safely ride out any crisis without the risk of bankruptcy. More…
Peers
The company’s competitors include Eukedos SpA, Med Life SA, Athens Medical Centre SA, and other similar companies.
– Eukedos SpA ($LTS:0Q8E)
Eukedos SpA is a pharmaceutical company that focuses on the development and commercialization of drugs for the treatment of rare diseases. The company has a market cap of 28.09M as of 2022 and a Return on Equity of 10.29%. Eukedos SpA is headquartered in Milan, Italy.
– Med Life SA ($LTS:0RO5)
MedLife SA is a publicly traded company with a market capitalization of 2B as of 2022. The company’s return on equity is 22.48%. MedLife SA is a leading provider of medical and healthcare services in South America. The company offers a full range of services including primary care, hospital care, specialty care, and behavioral health services. MedLife SA also has a strong presence in the insurance and managed care markets.
– Athens Medical Centre SA ($LTS:0ONM)
Athens Medical Centre SA is a medical company that operates in Greece. The company has a market cap of 117.53M as of 2022 and a return on equity of 18.02%. The company provides medical services and products to patients in Greece. Athens Medical Centre SA operates in the following segments: Medical Services, Medical Products, and Other. The Medical Services segment provides medical services to patients in Greece. The Medical Products segment provides medical products to patients in Greece. The Other segment includes activities such as real estate and investments.
Summary
Select Medical, a medical services and rehabilitation company, has received board approval for the potential separation of its Concentra business. This move is intended to unlock potential value, as the Concentra business operation has seen steady growth over recent years. Analysts suggest that this move could potentially raise the value of Select Medical’s stock.
The potential spin-off could create greater efficiencies and better focus the company, allowing it to capitalize on the continued growth of the Concentra business. Investors may want to watch this move closely, as it could lead to increased profitability for Select Medical.
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