Exploring NYSE:CHE's quality characteristics.

In this article we will dive into CHEMED CORP (NYSE:CHE) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CHEMED CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of CHEMED CORP

• CHEMED CORP has achieved substantial revenue growth over the past 5 years, with a 5.08% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 58.91%, CHEMED CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a favorable Debt/Free Cash Flow Ratio of 0.06, CHEMED CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• The Profit Quality (5-year) of CHEMED CORP stands at 111.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• CHEMED CORP has consistently achieved strong EBIT growth over the past 5 years, with a 9.79% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• CHEMED CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NYSE:CHE?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

CHE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 116 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. While showing a medium growth rate, CHE is valued expensive at the moment.

For an up to date full fundamental analysis you can check the fundamental report of CHE

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.