CHEMED CORP (CHE) Stock Fundamental Analysis
NYSE:CHE - US16359R1032 - Common Stock
459.05 USD
+4.96 (+1.09%)
457 USD
-2.05 (-0.45%)
Taking everything into account, CHE scores 7 out of 10 in our fundamental rating. CHE was compared to 101 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CHE was profitable.
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
Looking at the Return On Assets, with a value of 16.90%, CHE belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.23%, CHE belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
CHE's Return On Invested Capital of 20.52% is amongst the best of the industry. CHE outperforms 95.05% 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 9.15%.
| 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's Profit Margin of 11.56% is amongst the best of the industry. CHE outperforms 97.03% of its industry peers.
CHE's Profit Margin has improved in the last couple of years.
CHE has a better Operating Margin (15.49%) than 91.09% of its industry peers.
In the last couple of years the Operating Margin of CHE has grown nicely.
Looking at the Gross Margin, with a value of 33.65%, CHE is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
In the last couple of years the Gross Margin of CHE has grown nicely.
| 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.
The number of shares outstanding for CHE has been reduced compared to 1 year ago.
The number of shares outstanding for CHE has been reduced compared to 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
An Altman-Z score of 12.40 indicates that CHE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.40, CHE belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
The Debt to FCF ratio of CHE is 0.00, which is an excellent value as it means it would take CHE, only 0.00 years of fcf income to pay off 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 94.06% 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.
With an excellent Debt to Equity ratio value of 0.00, CHE belongs to the best of the industry, outperforming 88.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.4 |
ROIC/WACC2.31
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.86 indicates that CHE should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.86, CHE is doing good in the industry, outperforming 68.32% of the companies in the same industry.
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 69.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
CHE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.97%.
CHE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.64% yearly.
The Revenue has been growing slightly by 7.55% in the past year.
CHE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.63% yearly.
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-3.48%
EPS Next 2Y4.82%
EPS Next 3Y5.61%
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y5.77%
Revenue Next 3Y5.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.52, CHE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CHE indicates a somewhat cheap valuation: CHE is cheaper than 70.30% of the companies listed in the same industry.
CHE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 18.05, the valuation of CHE can be described as rather expensive.
65.35% of the companies in the same industry are more expensive than CHE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, CHE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
CHE's Enterprise Value to EBITDA is on the same level as the industry average.
68.32% 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 | 18.01 | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.93
EPS Next 2Y4.82%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 2.51, CHE pays a better dividend. On top of this CHE pays more dividend than 80.20% of the companies listed in the same industry.
With a Dividend Yield of 0.53, CHE pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of CHE is nicely growing with an annual growth rate of 8.02%!
CHE has paid a dividend for at least 10 years, which is 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
CHE pays out 10.17% 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.
DP10.17%
EPS Next 2Y4.82%
EPS Next 3Y5.61%
459.05
+4.96 (+1.09%)
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 Change-1.96%
Ins Owners1.59%
Ins Owner Change-5.26%
Market Cap6.69B
Analysts82.5
Price Target578.6 (26.04%)
Short Float %2.68%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)-12.28%
PT rev (3m)-16.25%
EPS NQ rev (1m)-4.86%
EPS NQ rev (3m)-11.46%
EPS NY rev (1m)-5.22%
EPS NY rev (3m)-12.53%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-3.73%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 18.05 | ||
| P/S | 2.66 | ||
| P/FCF | 18.01 | ||
| P/OCF | 15.67 | ||
| P/B | 5.58 | ||
| P/tB | 15.06 | ||
| EV/EBITDA | 14.22 |
EPS(TTM)22.37
EY4.87%
EPS(NY)25.43
Fwd EY5.54%
FCF(TTM)25.49
FCFY5.55%
OCF(TTM)29.29
OCFY6.38%
SpS172.4
BVpS82.26
TBVpS30.48
PEG (NY)N/A
PEG (5Y)1.93
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 | 12.4 |
F-Score7
WACC8.9%
ROIC/WACC2.31
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-3.48%
EPS Next 2Y4.82%
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 Year5.06%
Revenue Next 2Y5.77%
Revenue Next 3Y5.12%
Revenue Next 5YN/A
EBIT growth 1Y-1.51%
EBIT growth 3Y4.05%
EBIT growth 5Y8.18%
EBIT Next Year15.45%
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%