CHEMED CORP (CHE) Stock Fundamental Analysis
NYSE:CHE - New York Stock Exchange, Inc. - US16359R1032 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to CHE. CHE was compared to 102 industry peers in the Health Care Providers & Services industry. Both the health and profitability get an excellent rating, making CHE a very profitable company, without any liquidiy or solvency issues. CHE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHE was profitable.
CHE had a positive operating cash flow in the past year.
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
The Return On Assets of CHE (17.88%) is better than 98.04% of its industry peers.
The Return On Equity of CHE (26.13%) is better than 91.18% of its industry peers.
The Return On Invested Capital of CHE (22.08%) is better 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 9.53%.
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
The Profit Margin of CHE (12.40%) is better than 97.06% of its industry peers.
In the last couple of years the Profit Margin of CHE has grown nicely.
CHE's Operating Margin of 16.62% is amongst the best of the industry. CHE outperforms 93.14% of its industry peers.
In the last couple of years the Operating Margin of CHE has grown nicely.
CHE has a better Gross Margin (34.82%) than 63.73% 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.
CHE has less shares outstanding than it did 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 14.01 indicates that CHE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 14.01, 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.
CHE has a Debt to FCF ratio of 0.00. This is amongst the best in the industry. CHE outperforms 92.16% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that CHE is not too dependend on debt financing.
The Debt to Equity ratio of CHE (0.00) is better than 87.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.01 |
ROIC/WACC2.43
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.73 indicates that CHE should not have too much problems paying its short term obligations.
CHE's Current ratio of 1.73 is in line compared to the rest of the industry. CHE outperforms 59.80% of its industry peers.
CHE has a Quick Ratio of 1.70. 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 better Quick ratio (1.70) than 63.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
CHE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.97%.
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.
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
Based on estimates for the next years, CHE will show a small growth in Earnings Per Share. The EPS will grow by 7.90% on average per year.
Based on estimates for the next years, CHE will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.38 indicates a rather expensive valuation of CHE.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than 62.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, CHE is valued at the same level.
CHE is valuated rather expensively with a Price/Forward Earnings ratio of 20.67.
The rest of the industry has a similar Price/Forward Earnings ratio as CHE.
CHE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHE.
The rest of the industry has a similar Price/Free Cash Flow ratio as CHE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.69 | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)2.29
EPS Next 2Y9.62%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.35%, which is pretty low.
CHE's Dividend Yield is a higher than the industry average which is at 2.46.
Compared to an average S&P500 Dividend Yield of 2.36, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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 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%
NYSE:CHE (5/21/2025, 10:57:31 AM)
574.69
-6.79 (-1.17%)
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 Change0.72%
Ins Owners1.59%
Ins Owner Change0.1%
Market Cap8.41B
Analysts85.71
Price Target690.88 (20.22%)
Short Float %1.61%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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)2.06%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)3.09%
EPS NY rev (1m)0.36%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.67 | ||
| P/S | 3.38 | ||
| P/FCF | 26.69 | ||
| P/OCF | 22.99 | ||
| P/B | 7.11 | ||
| P/tB | 19.79 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)23.57
EY4.1%
EPS(NY)27.81
Fwd EY4.84%
FCF(TTM)21.53
FCFY3.75%
OCF(TTM)25
OCFY4.35%
SpS170.13
BVpS80.78
TBVpS29.04
PEG (NY)2.36
PEG (5Y)2.29
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 | 14.01 |
F-Score7
WACC9.1%
ROIC/WACC2.43
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 Year28.98%
EBIT Next 3Y12.84%
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%