(CHE) Chemed - Overview
Sector: Healthcare | Industry: Medical Care Facilities | Exchange: NYSE (USA) | Market Cap: 5.768m USD | Total Return: -22.3% in 12m
Industry Rotation: +10.9
Avg Turnover: 100M
EPS Trend: 49.2%
Qual. Beats: 0
Rev. Trend: 98.1%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Confidence
Chemed Corporation (NYSE: CHE) operates a unique diversified business model consisting of two primary segments: VITAS Healthcare and Roto-Rooter. VITAS provides hospice and palliative care services, utilizing interdisciplinary teams of medical professionals and counselors to support patients and families across the United States. Roto-Rooter serves as a major provider of plumbing, drain cleaning, and water restoration services for both residential and commercial clients.
The company’s dual structure balances the highly regulated healthcare sector with the recession-resistant demand of the home services industry. Hospice providers like VITAS operate under a reimbursement model primarily funded by Medicare, while Roto-Rooter relies on a mix of company-owned branches and franchise networks to maintain market share in emergency maintenance. You may find it useful to examine the historical margin stability of these two distinct segments on ValueRay.
Founded in 1970 and based in Cincinnati, Ohio, Chemed functions as a holding company that leverages its scale to manage operations in disparate service categories. This combination of essential medical care and essential infrastructure maintenance differentiates its risk profile within the Health Care Services sub-industry.
- VITAS segment profitability depends on Medicare and Medicaid reimbursement rate adjustments
- Labor supply and wage inflation impact healthcare and plumbing service margins
- Residential plumbing demand fluctuates with consumer discretionary spending and housing turnover
- Hospice census growth drives long-term revenue expansion in the VITAS division
- Expansion of Roto-Rooter water restoration services increases higher-margin commercial revenue streams
| Net Income: 259.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.25 > 0.02 and ΔFCF/TA 6.31 > 1.0 |
| NWC/Revenue: -1.86% < 20% (prev 8.51%; Δ -10.37% < -1%) |
| CFO/TA 0.29 > 3% & CFO 443.7m > Net Income 259.8m |
| Net Debt (220.1m) to EBITDA (413.3m): 0.53 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (13.7m) vs 12m ago -7.38% < -2% |
| Gross Margin: 30.32% > 18% (prev 0.35%; Δ 3.00k% > 0.5%) |
| Asset Turnover: 155.8% > 50% (prev 144.2%; Δ 11.59% > 0%) |
| Interest Coverage Ratio: 99.98 > 6 (EBITDA TTM 413.3m / Interest Expense TTM 3.48m) |
| A: -0.03 (Total Current Assets 274.1m - Total Current Liabilities 321.4m) / Total Assets 1.54b |
| B: 1.96 (Retained Earnings 3.01b / Total Assets 1.54b) |
| C: 0.21 (EBIT TTM 347.6m / Avg Total Assets 1.63b) |
| D: 4.44 (Book Value of Equity 3.05b / Total Liabilities 687.8m) |
| Altman-Z'' Score: 12.29 = AAA |
| DSRI: 0.74 (Receivables 215.5m/285.9m, Revenue 2.54b/2.49b) |
| GMI: 1.15 (GM 30.32% / 34.82%) |
| AQI: 1.42 (AQ_t 0.73 / AQ_t-1 0.52) |
| SGI: 1.02 (Revenue 2.54b / 2.49b) |
| TATA: -0.12 (NI 259.8m - CFO 443.7m) / TA 1.54b) |
| Beneish M-Score: -2.97 (Cap -4..+1) = A |
Over the past week, the price has changed by +3.60%, over one month by +18.13%, over three months by -7.73% and over the past year by -22.32%.
- StrongBuy: 2
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 446.5 | 1.1% |
P/E Forward = 17.5439
P/S = 2.2704
P/B = 6.6412
P/EG = 1.7542
Revenue TTM = 2.54b USD
EBIT TTM = 347.6m USD
EBITDA TTM = 413.3m USD
Long Term Debt = 91.2m USD (from longTermDebt, last quarter)
Short Term Debt = 41.3m USD (from shortTermDebt, last quarter)
Debt = 236.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 220.1m USD (from netDebt column, last quarter)
Enterprise Value = 5.99b USD (5.77b + Debt 236.9m - CCE 16.9m)
Interest Coverage Ratio = 99.98 (Ebit TTM 347.6m / Interest Expense TTM 3.48m)
EV/FCF = 15.88x (Enterprise Value 5.99b / FCF TTM 377.1m)
FCF Yield = 6.30% (FCF TTM 377.1m / Enterprise Value 5.99b)
FCF Margin = 14.84% (FCF TTM 377.1m / Revenue TTM 2.54b)
Net Margin = 10.23% (Net Income TTM 259.8m / Revenue TTM 2.54b)
Gross Margin = 30.32% ((Revenue TTM 2.54b - Cost of Revenue TTM 1.77b) / Revenue TTM)
Gross Margin QoQ = 30.25% (prev 32.22%)
Tobins Q-Ratio = 3.90 (Enterprise Value 5.99b / Total Assets 1.54b)
Interest Expense / Debt = 0.22% (Interest Expense 512k / Debt 236.9m)
Taxrate = 25.37% (22.5m / 88.8m)
NOPAT = 259.5m (EBIT 347.6m * (1 - 25.37%))
Current Ratio = 0.85 (Total Current Assets 274.1m / Total Current Liabilities 321.4m)
Debt / Equity = 0.28 (Debt 236.9m / totalStockholderEquity, last quarter 848.0m)
Debt / EBITDA = 0.53 (Net Debt 220.1m / EBITDA 413.3m)
Debt / FCF = 0.58 (Net Debt 220.1m / FCF TTM 377.1m)
Total Stockholder Equity = 1.03b (last 4 quarters mean from totalStockholderEquity)
RoA = 15.93% (Net Income 259.8m / Total Assets 1.54b)
RoE = 25.33% (Net Income TTM 259.8m / Total Stockholder Equity 1.03b)
RoCE = 31.13% (EBIT 347.6m / Capital Employed (Equity 1.03b + L.T.Debt 91.2m))
RoIC = 24.75% (NOPAT 259.5m / Invested Capital 1.05b)
WACC = 6.44% (E(5.77b)/V(6.00b) * Re(6.70%) + D(236.9m)/V(6.00b) * Rd(0.22%) * (1-Tc(0.25)))
Discount Rate = 6.70% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: -95.56 | Cagr: -4.78%
[DCF] Terminal Value 85.87% ; FCFF base≈352.3m ; Y1≈401.9m ; Y5≈554.8m
[DCF] Fair Price = 1.05k (EV 14.15b - Net Debt 220.1m = Equity 13.93b / Shares 13.3m; r=6.44% [WACC]; 5y FCF grow 16.43% → 3.0% )
EPS Correlation: 49.22 | EPS CAGR: 2.92% | SUE: -0.56 | # QB: 0
Revenue Correlation: 98.10 | Revenue CAGR: 6.12% | SUE: 1.00 | # QB: 1
EPS current Quarter (2026-06-30): EPS=5.63 | Chg30d=+4.36% | Revisions=+50% | Analysts=4
EPS next Quarter (2026-09-30): EPS=6.02 | Chg30d=+0.88% | Revisions=+0% | Analysts=4
EPS current Year (2026-12-31): EPS=24.35 | Chg30d=+2.00% | Revisions=+25% | GrowthEPS=+13.0% | GrowthRev=+6.4%
EPS next Year (2027-12-31): EPS=26.91 | Chg30d=+1.08% | Revisions=+25% | GrowthEPS=+10.5% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: +50%