CHEMED CORP (CHE) Stock Fundamental Analysis
USA - NYSE:CHE - US16359R1032 - Common Stock
440.56 USD
+9.64 (+2.24%)
440.56 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CHE. CHE was compared to 100 industry peers in the Health Care Providers & Services industry. CHE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CHE is valued correctly, but it does not seem to be growing.
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.
In the past 5 years CHE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.90%, CHE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CHE has a Return On Equity of 24.23%. This is amongst the best in the industry. CHE outperforms 91.00% of its industry peers.
CHE has a better Return On Invested Capital (20.52%) than 95.00% of its industry peers.
CHE had an Average Return On Invested Capital over the past 3 years of 21.96%. This is significantly above the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.9% | ||
| ROE | 24.23% | ||
| ROIC | 20.52% |
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 has a Profit Margin of 11.56%. This is amongst the best in the industry. CHE outperforms 97.00% of its industry peers.
In the last couple of years the Profit Margin of CHE has grown nicely.
The Operating Margin of CHE (15.49%) is better than 90.00% of its industry peers.
CHE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 33.65%, CHE is doing good in the industry, outperforming 64.00% of the companies in the same industry.
CHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.49% | ||
| PM (TTM) | 11.56% | ||
| GM | 33.65% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHE is creating value.
CHE has less shares outstanding than it did 1 year ago.
CHE has less shares outstanding than it did 5 years ago.
There is no outstanding debt for CHE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CHE has an Altman-Z score of 11.93. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
CHE's Altman-Z score of 11.93 is amongst the best of the industry. CHE outperforms 94.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.00, CHE belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
CHE has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, CHE belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.93 |
ROIC/WACC2.38
WACC8.63%
2.3 Liquidity
CHE has a Current Ratio of 1.86. This is a normal value and indicates that CHE is financially healthy and should not expect problems in meeting its short term obligations.
CHE has a Current ratio of 1.86. This is in the better half of the industry: CHE outperforms 70.00% of its industry peers.
CHE has a Quick Ratio of 1.83. 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 Quick ratio, with a value of 1.83, CHE is in the better half of the industry, outperforming 71.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The earnings per share for CHE have decreased by -0.97% in the last year.
Measured over the past years, CHE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.64% on average per year.
CHE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.55%.
Measured over the past years, CHE shows a small growth in Revenue. The Revenue has been growing by 4.63% on average per year.
EPS 1Y (TTM)-0.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%-21.94%
Revenue 1Y (TTM)7.55%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%3.85%
3.2 Future
Based on estimates for the next years, CHE will show a small growth in Earnings Per Share. The EPS will grow by 5.61% on average per year.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y-3.24%
EPS Next 2Y5.12%
EPS Next 3Y5.61%
EPS Next 5YN/A
Revenue Next Year5.02%
Revenue Next 2Y5.86%
Revenue Next 3Y5.12%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.69, CHE is valued on the expensive side.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. CHE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.23, the valuation of CHE can be described as rather expensive.
72.00% of the companies in the same industry are more expensive than CHE, based on the Price/Forward Earnings ratio.
CHE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHE is on the same level as its industry peers.
72.00% of the companies in the same industry are more expensive than CHE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.28 | ||
| EV/EBITDA | 13.31 |
4.3 Compensation for Growth
CHE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y5.12%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.56%, which is pretty low.
CHE's Dividend Yield is a higher than the industry average which is at 2.44.
Compared to an average S&P500 Dividend Yield of 2.38, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
The dividend of CHE is nicely growing with an annual growth rate of 8.02%!
CHE has been paying a dividend for at least 10 years, so it has a reliable track record.
CHE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.02%
Div Incr Years16
Div Non Decr Years21
5.3 Sustainability
10.17% of the earnings are spent on dividend by CHE. This is a low number and sustainable payout ratio.
The dividend of CHE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.17%
EPS Next 2Y5.12%
EPS Next 3Y5.61%
440.56
+9.64 (+2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.28%
Inst Owner Change0.08%
Ins Owners1.52%
Ins Owner Change-5.37%
Market Cap6.42B
Analysts87.5
Price Target590.07 (33.94%)
Short Float %2.71%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend1.83
Dividend Growth(5Y)8.02%
DP10.17%
Div Incr Years16
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.3%
Min EPS beat(2)-15.11%
Max EPS beat(2)0.5%
EPS beat(4)1
Avg EPS beat(4)-4.49%
Min EPS beat(4)-15.11%
Max EPS beat(4)0.5%
EPS beat(8)3
Avg EPS beat(8)-1.89%
EPS beat(12)5
Avg EPS beat(12)-1.91%
EPS beat(16)9
Avg EPS beat(16)-0.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)-0.19%
Revenue beat(8)1
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.04%
Revenue beat(16)3
Avg Revenue beat(16)-1.15%
PT rev (1m)1.98%
PT rev (3m)-14.59%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-4.69%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 17.23 | ||
| P/S | 2.56 | ||
| P/FCF | 17.28 | ||
| P/OCF | 15.04 | ||
| P/B | 5.36 | ||
| P/tB | 14.45 | ||
| EV/EBITDA | 13.31 |
EPS(TTM)22.37
EY5.08%
EPS(NY)25.57
Fwd EY5.8%
FCF(TTM)25.49
FCFY5.79%
OCF(TTM)29.29
OCFY6.65%
SpS172.4
BVpS82.26
TBVpS30.48
PEG (NY)N/A
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.9% | ||
| ROE | 24.23% | ||
| ROCE | 26.76% | ||
| ROIC | 20.52% | ||
| ROICexc | 24.78% | ||
| ROICexgc | 66.31% | ||
| OM | 15.49% | ||
| PM (TTM) | 11.56% | ||
| GM | 33.65% | ||
| FCFM | 14.79% |
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 Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.82% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.24% | ||
| Profit Quality | 127.91% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 11.93 |
F-Score7
WACC8.63%
ROIC/WACC2.38
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)-0.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%-21.94%
EPS Next Y-3.24%
EPS Next 2Y5.12%
EPS Next 3Y5.61%
EPS Next 5YN/A
Revenue 1Y (TTM)7.55%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%3.85%
Revenue Next Year5.02%
Revenue Next 2Y5.86%
Revenue Next 3Y5.12%
Revenue Next 5YN/A
EBIT growth 1Y-1.51%
EBIT growth 3Y4.05%
EBIT growth 5Y8.18%
EBIT Next Year15.23%
EBIT Next 3Y10.26%
EBIT Next 5YN/A
FCF growth 1Y32.69%
FCF growth 3Y13.77%
FCF growth 5Y8.19%
OCF growth 1Y23.7%
OCF growth 3Y10.6%
OCF growth 5Y6.75%