CHEMED CORP (CHE) Stock Fundamental Analysis
NYSE:CHE - New York Stock Exchange, Inc. - US16359R1032 - Common Stock - Currency: USD
Overall CHE gets a fundamental rating of 7 out of 10. We evaluated CHE against 103 industry peers in the Health Care Providers & Services industry. CHE gets an excellent profitability rating and is at the same time showing great financial health properties. CHE has a correct valuation and a medium 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.
CHE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHE has a better Return On Assets (17.88%) than 98.06% of its industry peers.
CHE's Return On Equity of 26.13% is amongst the best of the industry. CHE outperforms 92.23% of its industry peers.
With an excellent Return On Invested Capital value of 22.08%, CHE belongs to the best of the industry, outperforming 94.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHE is significantly above the industry average of 9.71%.
The last Return On Invested Capital (22.08%) for CHE is above the 3 year average (21.96%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 12.40%, CHE belongs to the top of the industry, outperforming 98.06% of the companies in the same industry.
In the last couple of years the Profit Margin of CHE has grown nicely.
With an excellent Operating Margin value of 16.62%, CHE belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
In the last couple of years the Operating Margin of CHE has grown nicely.
CHE's Gross Margin of 34.82% is fine compared to the rest of the industry. CHE outperforms 64.08% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHE is creating value.
CHE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHE has less shares outstanding
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
An Altman-Z score of 12.23 indicates that CHE is not in any danger for bankruptcy at the moment.
CHE has a better Altman-Z score (12.23) than 95.15% 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.
CHE has a better Debt to FCF ratio (0.00) than 92.23% of its industry peers.
CHE has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
CHE's Debt to Equity ratio of 0.00 is amongst the best of the industry. CHE outperforms 86.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.23 |
ROIC/WACC2.47
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.73 indicates that CHE should not have too much problems paying 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 60.19% 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 64.08% 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.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.52%.
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)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.
CHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.76% yearly.
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 20.11, which indicates a rather expensive current valuation of CHE.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than 69.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, CHE is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.04, which indicates a rather expensive current valuation of CHE.
CHE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 66.99% of the companies in the same industry.
CHE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
CHE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CHE is valued a bit cheaper than the industry average as 64.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 14.09 |
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.
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)1.89
EPS Next 2Y9.62%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.36%, which is pretty low.
In the last 3 months the price of CHE has falen by -21.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.37, 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 2.42.
| 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
9.19% of the earnings are spent on dividend by CHE. This is a low number and 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 (7/3/2025, 11:12:10 AM)
473.91
+2.67 (+0.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.53%
Inst Owner Change0.67%
Ins Owners1.59%
Ins Owner Change1.7%
Market Cap6.93B
Analysts85.71
Price Target690.88 (45.78%)
Short Float %3.53%
Short Ratio3.43
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)0%
PT rev (3m)-1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.04 | ||
| P/S | 2.79 | ||
| P/FCF | 22.01 | ||
| P/OCF | 18.96 | ||
| P/B | 5.87 | ||
| P/tB | 16.32 | ||
| EV/EBITDA | 14.09 |
EPS(TTM)23.57
EY4.97%
EPS(NY)27.81
Fwd EY5.87%
FCF(TTM)21.53
FCFY4.54%
OCF(TTM)25
OCFY5.27%
SpS170.13
BVpS80.78
TBVpS29.04
PEG (NY)1.94
PEG (5Y)1.89
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 | 12.23 |
F-Score7
WACC8.93%
ROIC/WACC2.47
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%