Select Medical Holdings (FRA:S24) Interest Coverage: 3.47 (As of Mar. 2026) — 58% Above Median


FRA:S24 Select Medical Holdings Corp FRA:S24
77 GF Score
Price €14.40
GF Value €14.99
! 7 Warning Signs
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What is Select Medical Holdings Interest Coverage?

Select Medical Holdings FRA:S24 +1.41% 77 Interest Coverage is 3.47 as of Mar. 2026, which is 58% above its 10-year median of 2.20. GuruFocus rates FRA:S24 with a GF Score™ of 77/100 and a GF Value™ of €14.99. The stock has 7 warning signs investors should review. Among 453 Healthcare Providers & Services companies, Select Medical Holdings ranks worse than 75.94% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Select Medical Holdings's Operating Income for the three months ended in Mar. 2026 was €85 Mil. Select Medical Holdings's Interest Expense for the three months ended in Mar. 2026 was €-25 Mil. Select Medical Holdings's interest coverage for the quarter that ended in Mar. 2026 was 3.47. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Select Medical Holdings's Interest Coverage or its related term are showing as below:

FRA:S24' s Interest Coverage Range Over the Past 10 Years
Min: 1.05   Med: 2.2   Max: 5.25
Current: 2.75


FRA:S24's Interest Coverage is ranked worse than
75.94% of 453 companies
in the Healthcare Providers & Services industry
Industry Median: 8 vs FRA:S24: 2.75

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Select Medical Holdings  (FRA:S24) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Select Medical Holdings Interest Coverage Related Terms


Select Medical Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Select Medical Holdings's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Select Medical Holdings Interest Coverage Chart

Select Medical Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.25 1.05 1.73 2.09 2.85

Select Medical Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.88 2.89 2.43 2.21 3.47

FRA:S24 vs SGRY, MD, AGL: Interest Coverage Comparison

For the Medical Care Facilities subindustry, Select Medical Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Select Medical Holdings Interest Coverage vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Select Medical Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Select Medical Holdings's Interest Coverage falls into.


FRA:S24
77GF Score
Select Medical Holdings Corp FRA:S24
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Select Medical Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Select Medical Holdings's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Select Medical Holdings's Interest Expense was €-101 Mil. Its Operating Income was €287 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,254 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*287.089/-100.722
=2.85

Select Medical Holdings's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Select Medical Holdings's Interest Expense was €-25 Mil. Its Operating Income was €85 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,393 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*85.132/-24.511
=3.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 3.47 mean?
Select Medical Holdings (FRA:S24) has a Interest Coverage of 3.47 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Select Medical Holdings and its competitors. This is 58% above median its historical median of 2.20. Over the past decade, Select Medical Holdings' Interest Coverage has ranged from 1.05 to 5.25. According to the industry distribution chart, Select Medical Holdings ranks #344 out of 453 companies in the Healthcare Providers & Services industry, placing it in the top 75.9%.
Is Select Medical Holdings' Interest Coverage too high?
Select Medical Holdings' current Interest Coverage of 3.47 is 58% above median its 10-year median of 2.20. Over the past 10 years, this metric has ranged from a low of 1.05 to a high of 5.25. The Healthcare Providers & Services industry median Interest Coverage is 8.00. Select Medical Holdings' value of 3.47 is 56.6% below this industry median. Based on the distribution chart, Select Medical Holdings ranks #344 out of 453 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Select Medical Holdings has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Select Medical Holdings' Interest Coverage compare to SGRY and MD?
According to the Healthcare Providers & Services industry distribution chart, Select Medical Holdings ranks #344 out of 453 companies for Interest Coverage. This places Select Medical Holdings in the lower half of its industry. The industry median Interest Coverage is 8.00. Select Medical Holdings' value of 3.47 is 56.6% below this benchmark. Historically, Select Medical Holdings' own Interest Coverage has ranged from 1.05 to 5.25 over the past decade. While the company's 10-year median is 2.20 vs. the industry median of 8.00, Select Medical Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Healthcare Providers & Services company?
The median Interest Coverage among Healthcare Providers & Services companies is 8.00, based on 453 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Select Medical Holdings's current Interest Coverage of 3.47 is 56.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Select Medical Holdings and its competitors. For the Healthcare Providers & Services industry, the median Interest Coverage is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Select Medical Holdings's current Interest Coverage is 3.47, which is 58% above median its own 10-year median of 2.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Select Medical Holdings stock overvalued right now?
Select Medical Holdings (FRA:S24) has a current Interest Coverage of 3.47. The stock's GF Value™ is €14.99, compared to a current price of €14.40 — trading 3.9% below its estimated fair value. The current Interest Coverage is 3.47, which is 58% above median its 10-year median of 2.20 and 56.6% below the Healthcare Providers & Services industry median of 8.00. Select Medical Holdings' overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Select Medical Holdings (FRA:S24), the current Interest Coverage is 3.47 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Select Medical Holdings (FRA:S24) Overvalued in 2026?

Based on GuruFocus' analysis, Select Medical Holdings stock appears to be undervalued. The current stock price of €14.40 is trading 3.9% below its estimated GF Value™ of €14.99.

Key valuation signals for FRA:S24:

  • Interest Coverage: 3.47 (58% above median its 10-year median of 2.20)
  • GF Value™: €14.99 vs. price of €14.40 (3.9% below fair value)
  • GF Score™: 77/100 with 7 warning signs
  • Industry Position: 56.6% below the Healthcare Providers & Services median (#344 of 453)

No single metric tells the full story. See the FRA:S24 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Select Medical Holdings Business Description

Other Exchanges SEM:USA
Address 4714 Gettysburg Road, P.O. Box 2034, Mechanicsburg, PA, USA, 17055
Select Medical Holdings Corp is a healthcare company that operates through three segments: critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics. Critical illness recovery hospitals which derives maximum revenue consists of hospitals designed to serve the needs of patients recovering from critical illnesses, often with complex medical needs. The rehabilitation hospital segment consists of hospitals designed to serve patients that require intensive physical rehabilitation care. Patients are typically admitted to critical illness recovery hospitals and rehabilitation hospitals from general acute care hospitals. The outpatient rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services.
77GF Score

Get the complete analysis for FRA:S24

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€14.40
Price
€14.99
GF Value