CHE Stock Analysis: Chemed | NYSE
Medical Care Facilities | NYSE, USA | Market Cap: 6.971m USD | 12M Return: 18.3% | US16359R1032 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 70.7M
EPS Trend: 28.7%
Qual. Beats: 3
Rev. Trend: 97.9%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Chemed Corporation (NYSE: CHE) is a Cincinnati-based holding company operating two distinct businesses: the VITAS segment, which provides hospice and palliative care services across the United States through a multidisciplinary team of physicians, nurses, aides, social workers, clergy, and volunteers, and the Roto-Rooter segment, which delivers plumbing, drain cleaning, excavation, and water restoration services to residential and commercial customers via company-owned branches, independent contractors, and franchisees. Founded in 1970 and publicly listed since 1973, the company combines a regulated healthcare services business with a consumer-facing, asset-light trades services franchise.
The VITAS segment operates within the U.S. hospice and palliative care industry, where the vast majority of patients are aged 65 and older and services are predominantly reimbursed through the Medicare Hospice Benefit, making the segments revenue closely tied to Medicare per-diem payment rates set by the Centers for Medicare & Medicaid Services. The Roto-Rooter segment benefits from a franchise and independent-contractor distribution model, which reduces capital intensity relative to fully company-owned service networks and provides recurring demand from maintenance, emergency repair, and water-damage restoration needs in both residential and commercial properties.
Chemed is classified in the GICS Health Care sector within Health Care Services, and with a market capitalization of roughly $6.7 billion it sits in the mid-cap segment of U.S. equities. Its dual-segment structure across health care and consumer services is relatively uncommon among publicly traded health care companies, giving investors exposure to both a demographic-driven end-of-life care business and a more cyclical, franchise-based plumbing and restoration business.
- Medicare hospice reimbursement rate updates drive VITAS margin trajectory
- Roto-Rooter revenue surges on severe weather and aging housing infrastructure
- Hospice nurse staffing shortages pressure labor costs and admissions growth
| Net Income: 282.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA -5.01 > 1.0 |
| NWC/Revenue: 1.31% < 20% (prev 4.08%; Δ -2.77% < -1%) |
| CFO/TA 0.21 > 3% & CFO 363.2m > Net Income 282.4m |
| Net Debt (489.5m) to EBITDA (446.1m): 1.10 < 3 |
| Current Ratio: 1.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (13.1m) vs 12m ago -9.63% < -2% |
| Gross Margin: 31.65% > 18% (prev 32.24%; Δ -0.59% > 0.5%) |
| Asset Turnover: 159.2% > 50% (prev 155.9%; Δ 3.38% > 0%) |
| Interest Coverage Ratio: 76.96 > 6 (EBIT TTM 378.6m / Interest Expense TTM 4.92m) |
| A: 0.02 (Total Current Assets 365.7m - Total Current Liabilities 330.9m) / Total Assets 1.72b |
| B: 1.82 (Retained Earnings 3.14b / Total Assets 1.72b) |
| C: 0.23 (EBIT TTM 378.6m / Avg Total Assets 1.67b) |
| D: 1.01 (Book Value of Equity 861.4m / Total Liabilities 857.0m) |
| Altman-Z'' = 8.66 = AAA |
| DSRI: 1.12 (Receivables 254.9m/215.6m, Revenue 2.66b/2.53b) |
| GMI: 1.02 (GM 32.24% / 31.65%) |
| AQI: 1.05 (AQ_t 0.58 / AQ_t-1 0.55) |
| SGI: 1.05 (Revenue 2.66b / 2.53b) |
| TATA: -0.05 (NI 282.4m - CFO 363.2m) / TA 1.72b) |
| Beneish M = -2.85 (Cap -4..+1) = A |
As of October 31, 2026, the stock is trading at USD 534.72 with a total of 180,447 shares traded. Over the past week, the price has changed by +4.24%, over one month by +4.43%, over three months by +0.12% and over the past year by +18.29%.
Current recommended Stop Loss: 512.30 (which is 4.2% or 1.5 ATR below the current price).
Chemed has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold CHE.
- StrongBuy: 2
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 592.6 | 10.8% |
P/E Trailing = 26.829
P/E Forward = 18.5529
P/S = 2.6863
P/B = 8.0117
P/EG = 1.857
Revenue TTM = 2.66b USD
EBIT TTM = 378.6m USD
EBITDA TTM = 446.1m USD
Long Term Debt = 351.0m USD (estimated: total debt 392.2m - short term 41.2m)
Short Term Debt = 41.2m USD (from shortTermDebt, last quarter)
Debt = 537.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 145.7m
Net Debt = 489.5m USD (calculated: Debt 537.9m - CCE 48.4m)
Enterprise Value = 7.46b USD (6.97b + Debt 537.9m - CCE 48.4m)
Interest Coverage Ratio = 76.96 (Ebit TTM 378.6m / Interest Expense TTM 4.92m)
EV/FCF = 25.25x (Enterprise Value 7.46b / FCF TTM 295.5m)
FCF Yield = 3.96% (FCF TTM 295.5m / Enterprise Value 7.46b)
FCF Margin = 11.10% (FCF TTM 295.5m / Revenue TTM 2.66b)
Net Margin = 10.61% (Net Income TTM 282.4m / Revenue TTM 2.66b)
Gross Margin = 31.65% ((Revenue TTM 2.66b - Cost of Revenue TTM 1.82b) / Revenue TTM)
Gross Margin QoQ = 33.72% (prev 30.36%)
Tobins Q-Ratio = 4.34 (Enterprise Value 7.46b / Total Assets 1.72b)
Interest Expense / Debt = 0.91% (Interest Expense 4.92m / Debt 537.9m)
Taxrate = 26.13% (99.9m / 382.3m)
NOPAT = 279.6m (EBIT 378.6m * (1 - 26.13%))
Current Ratio = 1.11 (Total Current Assets 365.7m / Total Current Liabilities 330.9m)
Debt / Equity = 0.62 (Debt 537.9m / totalStockholderEquity, last quarter 861.4m)
Debt / EBITDA = 1.10 (Net Debt 489.5m / EBITDA 446.1m)
Debt / FCF = 1.66 (Net Debt 489.5m / FCF TTM 295.5m)
Total Stockholder Equity = 879.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 16.90% (Net Income 282.4m / Total Assets 1.72b)
RoE = 32.10% (Net Income TTM 282.4m / Total Stockholder Equity 879.8m)
RoCE = 30.76% (EBIT 378.6m / Capital Employed (Equity 879.8m + L.T.Debt 351.0m))
RoIC = 20.26% (NOPAT 279.6m / Invested Capital 1.38b)
WACC = 5.64% (E(6.97b)/V(7.51b) * Re(6.02%) + D(537.9m)/V(7.51b) * Rd(0.91%) * (1-Tc(0.26)))
Discount Rate = 6.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.05 | Cagr: -6.42%
[DCF] Terminal Value 73.10% ; FCFF base≈321.4m ; Y1≈281.9m ; Y5≈227.8m
[DCF] Fair Price = 242.3 (EV 3.66b - Net Debt 489.5m = Equity 3.17b / Shares 13.1m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 28.68 | EPS CAGR: 1.17% | SUE: 1.12 | # QB: 3
Revenue Correlation: 97.86 | Revenue CAGR: 5.63% | SUE: 0.63 | # QB: 0
EPS current Quarter (2027-03-31): EPS=6.12 | Chg30d=+4.62% | Revisions=-25% | Analysts=2
EPS current Year (2026-12-31): EPS=25.76 | Chg30d=+1.04% | Revisions=-25% | GrowthEPS=+19.5% | GrowthRev=+8.0%
EPS next Year (2027-12-31): EPS=27.82 | Chg30d=+1.10% | Revisions=-25% | GrowthEPS=+8.0% | GrowthRev=+6.4%
[Analyst] Revisions Ratio: -50% (up=0, down=3)