CHEMED CORP (CHE) Stock Fundamental Analysis
NYSE:CHE - New York Stock Exchange, Inc. - US16359R1032 - Common Stock - Currency: USD
Taking everything into account, CHE scores 7 out of 10 in our fundamental rating. CHE was compared to 102 industry peers in the Health Care Providers & Services industry. CHE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CHE had positive earnings in the past year.
In the past year CHE had a positive cash flow from operations.
Each year in the past 5 years CHE has been profitable.
Each year in the past 5 years CHE had a positive operating cash flow.
1.2 Ratios
CHE's Return On Assets of 17.88% is amongst the best of the industry. CHE outperforms 98.04% of its industry peers.
CHE's Return On Equity of 26.13% is amongst the best of the industry. CHE outperforms 91.18% of its industry peers.
CHE has a better Return On Invested Capital (22.08%) than 94.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHE is significantly above the industry average of 9.62%.
The 3 year average ROIC (21.96%) for CHE is below the current ROIC(22.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.88% | ||
| ROE | 26.13% | ||
| ROIC | 22.08% |
ROA(3y)17.25%
ROA(5y)18.8%
ROE(3y)27.61%
ROE(5y)32.28%
ROIC(3y)21.96%
ROIC(5y)22.92%
1.3 Margins
CHE's Profit Margin of 12.40% is amongst the best of the industry. CHE outperforms 97.06% of its industry peers.
CHE's Profit Margin has improved in the last couple of years.
CHE has a Operating Margin of 16.62%. This is amongst the best in the industry. CHE outperforms 92.16% of its industry peers.
CHE's Operating Margin has improved in the last couple of years.
CHE has a better Gross Margin (34.82%) than 65.69% of its industry peers.
CHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.62% | ||
| PM (TTM) | 12.4% | ||
| GM | 34.82% |
OM growth 3Y-0.29%
OM growth 5Y3.39%
PM growth 3Y-0.36%
PM growth 5Y1.83%
GM growth 3Y-0.79%
GM growth 5Y1.99%
2. Health
2.1 Basic Checks
CHE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CHE has been reduced compared to 1 year ago.
Compared to 5 years ago, CHE has less shares outstanding
CHE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 13.50 indicates that CHE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.50, CHE belongs to the best of the industry, outperforming 95.10% of the companies in the same industry.
CHE has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.00, CHE belongs to the best of the industry, outperforming 93.14% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that CHE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, CHE belongs to the top of the industry, outperforming 87.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.5 |
ROIC/WACC2.42
WACC9.13%
2.3 Liquidity
CHE has a Current Ratio of 1.73. This is a normal value and indicates that CHE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.73, CHE is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
A Quick Ratio of 1.70 indicates that CHE should not have too much problems paying its short term obligations.
CHE has a better Quick ratio (1.70) than 65.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.97% over the past year.
CHE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.64% yearly.
Looking at the last year, CHE shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
The Revenue has been growing slightly by 4.63% on average over the past years.
EPS 1Y (TTM)7.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%8.27%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%9.79%
3.2 Future
CHE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.90% yearly.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y10.34%
EPS Next 2Y9.62%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue Next Year8.61%
Revenue Next 2Y7.34%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.50, which indicates a rather expensive current valuation of CHE.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than the industry average as 63.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHE to the average of the S&P500 Index (26.59), we can say CHE is valued inline with the index average.
CHE is valuated rather expensively with a Price/Forward Earnings ratio of 19.92.
CHE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CHE to the average of the S&P500 Index (22.39), we can say CHE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 19.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHE.
CHE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.72 | ||
| EV/EBITDA | 16.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHE does not grow enough to justify the current Price/Earnings ratio.
CHE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)2.21
EPS Next 2Y9.62%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, CHE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.46, CHE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.36, CHE pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
5.2 History
On average, the dividend of CHE grows each year by 8.02%, which is quite nice.
CHE has paid a dividend for at least 10 years, which is a reliable track record.
CHE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.02%
Div Incr Years16
Div Non Decr Years21
5.3 Sustainability
CHE pays out 9.19% of its income as dividend. This is a sustainable payout ratio.
CHE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.19%
EPS Next 2Y9.62%
EPS Next 3Y7.9%
553.84
+3.81 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.93%
Inst Owner Change0.67%
Ins Owners1.59%
Ins Owner Change1.7%
Market Cap8.10B
Analysts85.71
Price Target690.88 (24.74%)
Short Float %2.4%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Yearly Dividend1.83
Dividend Growth(5Y)8.02%
DP9.19%
Div Incr Years16
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.09%
Min EPS beat(2)-0.31%
Max EPS beat(2)0.5%
EPS beat(4)1
Avg EPS beat(4)-1.51%
Min EPS beat(4)-3.17%
Max EPS beat(4)0.5%
EPS beat(8)3
Avg EPS beat(8)-1.04%
EPS beat(12)6
Avg EPS beat(12)-0.62%
EPS beat(16)10
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-0.19%
Revenue beat(8)1
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.02%
Revenue beat(16)4
Avg Revenue beat(16)-0.8%
PT rev (1m)-1.48%
PT rev (3m)1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.09%
EPS NY rev (1m)0.36%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 19.92 | ||
| P/S | 3.26 | ||
| P/FCF | 25.72 | ||
| P/OCF | 22.16 | ||
| P/B | 6.86 | ||
| P/tB | 19.07 | ||
| EV/EBITDA | 16.51 |
EPS(TTM)23.57
EY4.26%
EPS(NY)27.81
Fwd EY5.02%
FCF(TTM)21.53
FCFY3.89%
OCF(TTM)25
OCFY4.51%
SpS170.13
BVpS80.78
TBVpS29.04
PEG (NY)2.27
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.88% | ||
| ROE | 26.13% | ||
| ROCE | 28.8% | ||
| ROIC | 22.08% | ||
| ROICexc | 25.12% | ||
| ROICexgc | 62.73% | ||
| OM | 16.62% | ||
| PM (TTM) | 12.4% | ||
| GM | 34.82% | ||
| FCFM | 12.66% |
ROA(3y)17.25%
ROA(5y)18.8%
ROE(3y)27.61%
ROE(5y)32.28%
ROIC(3y)21.96%
ROIC(5y)22.92%
ROICexc(3y)25.21%
ROICexc(5y)25.79%
ROICexgc(3y)67.33%
ROICexgc(5y)75.46%
ROCE(3y)28.73%
ROCE(5y)30.03%
ROICexcg growth 3Y-5.61%
ROICexcg growth 5Y0.34%
ROICexc growth 3Y-1.58%
ROICexc growth 5Y4.43%
OM growth 3Y-0.29%
OM growth 5Y3.39%
PM growth 3Y-0.36%
PM growth 5Y1.83%
GM growth 3Y-0.79%
GM growth 5Y1.99%
F-Score7
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 80.07% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.69% | ||
| Profit Quality | 102.04% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 13.5 |
F-Score7
WACC9.13%
ROIC/WACC2.42
Cap/Depr(3y)89.59%
Cap/Depr(5y)94.39%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.56%
Profit Quality(3y)107.8%
Profit Quality(5y)110.23%
High Growth Momentum
Growth
EPS 1Y (TTM)7.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%8.27%
EPS Next Y10.34%
EPS Next 2Y9.62%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue 1Y (TTM)8.52%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%9.79%
Revenue Next Year8.61%
Revenue Next 2Y7.34%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
EBIT growth 1Y10.75%
EBIT growth 3Y4.05%
EBIT growth 5Y8.18%
EBIT Next Year29.61%
EBIT Next 3Y12.91%
EBIT Next 5YN/A
FCF growth 1Y51.76%
FCF growth 3Y13.77%
FCF growth 5Y8.19%
OCF growth 1Y35.8%
OCF growth 3Y10.6%
OCF growth 5Y6.75%