CHEMED CORP (CHE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHE - US16359R1032 - Common Stock
432.18 USD
-3.1 (-0.71%)
432.18 USD
0 (0%)
Taking everything into account, CHE scores 7 out of 10 in our fundamental rating. 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 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.
CHE had positive earnings in each of the past 5 years.
In the past 5 years CHE always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 17.17%, CHE belongs to the best of the industry, outperforming 99.02% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.89%, CHE belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.27%, CHE belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
CHE had an Average Return On Invested Capital over the past 3 years of 21.96%. This is significantly above the industry average of 9.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.17% | ||
| ROE | 25.89% | ||
| ROIC | 21.27% |
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 (11.02%) is better than 93.14% of its industry peers.
In the last couple of years the Profit Margin of CHE has grown nicely.
With an excellent Operating Margin value of 14.60%, CHE belongs to the best of the industry, outperforming 87.25% of the companies in the same industry.
In the last couple of years the Operating Margin of CHE has grown nicely.
The Gross Margin of CHE (32.88%) is better than 62.75% of its industry peers.
CHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.6% | ||
| PM (TTM) | 11.02% | ||
| GM | 32.88% |
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.
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
CHE has an Altman-Z score of 11.64. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
CHE has a better Altman-Z score (11.64) than 96.08% of its industry peers.
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.
CHE's Debt to FCF ratio of 0.00 is amongst the best of the industry. CHE outperforms 94.12% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that CHE is not too dependend on debt financing.
CHE has a better Debt to Equity ratio (0.00) than 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.64 |
ROIC/WACC2.4
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CHE should not have too much problems paying its short term obligations.
CHE has a Current ratio of 1.35. This is comparable to the rest of the industry: CHE outperforms 48.04% of its industry peers.
A Quick Ratio of 1.33 indicates that CHE should not have too much problems paying its short term obligations.
CHE has a Quick ratio of 1.33. This is comparable to the rest of the industry: CHE outperforms 52.94% of its industry peers.
The current and quick ratio evaluation for CHE is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
CHE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.97%.
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.
The Revenue has been growing slightly by 6.45% 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)-3.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%-6.56%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%3.09%
3.2 Future
CHE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.13% yearly.
The Revenue is expected to grow by 5.17% on average over the next years.
EPS Next Y-3.15%
EPS Next 2Y5.45%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue Next Year5.02%
Revenue Next 2Y5.61%
Revenue Next 3Y5.17%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.64, which indicates a rather expensive current valuation of CHE.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHE to the average of the S&P500 Index (26.57), we can say CHE is valued slightly cheaper.
CHE is valuated correctly with a Price/Forward Earnings ratio of 16.80.
CHE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 71.57% of the companies in the same industry.
CHE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 16.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHE is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
CHE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHE is cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.98 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y5.45%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, CHE is not a good candidate for dividend investing.
CHE's Dividend Yield is rather good when compared to the industry average which is at 0.58. CHE pays more dividend than 81.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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
CHE pays out 11.01% 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.
DP11.01%
EPS Next 2Y5.45%
EPS Next 3Y6.13%
432.18
-3.1 (-0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.67%
Inst Owner Change0.88%
Ins Owners1.53%
Ins Owner Change-6.87%
Market Cap6.12B
Revenue(TTM)2.53B
Net Income(TTM)278.81M
Analysts87.5
Price TargetN/A
Short Float %4.87%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend1.83
Dividend Growth(5Y)8.02%
DP11.01%
Div Incr Years16
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.99%
Min EPS beat(2)-15.11%
Max EPS beat(2)-2.88%
EPS beat(4)1
Avg EPS beat(4)-4.45%
Min EPS beat(4)-15.11%
Max EPS beat(4)0.5%
EPS beat(8)2
Avg EPS beat(8)-3.19%
EPS beat(12)4
Avg EPS beat(12)-2.23%
EPS beat(16)8
Avg EPS beat(16)-1.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)-0.19%
Revenue beat(8)0
Avg Revenue beat(8)-1.28%
Revenue beat(12)2
Avg Revenue beat(12)-1.05%
Revenue beat(16)2
Avg Revenue beat(16)-1.24%
PT rev (1m)-0.73%
PT rev (3m)-0.73%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 16.8 | ||
| P/S | 2.42 | ||
| P/FCF | 16.98 | ||
| P/OCF | 14.58 | ||
| P/B | 5.68 | ||
| P/tB | 18.84 | ||
| EV/EBITDA | 13.91 |
EPS(TTM)22
EY5.09%
EPS(NY)25.73
Fwd EY5.95%
FCF(TTM)25.46
FCFY5.89%
OCF(TTM)29.64
OCFY6.86%
SpS178.72
BVpS76.04
TBVpS22.94
PEG (NY)N/A
PEG (5Y)1.85
Graham Number194.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.17% | ||
| ROE | 25.89% | ||
| ROCE | 27.75% | ||
| ROIC | 21.27% | ||
| ROICexc | 23.56% | ||
| ROICexgc | 62.89% | ||
| OM | 14.6% | ||
| PM (TTM) | 11.02% | ||
| GM | 32.88% | ||
| FCFM | 14.24% |
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%
ROICexgc growth 3Y-5.61%
ROICexgc 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 Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.02% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.74% | ||
| Profit Quality | 129.28% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 11.64 |
F-Score7
WACC8.88%
ROIC/WACC2.4
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)-3.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%-6.56%
EPS Next Y-3.15%
EPS Next 2Y5.45%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%3.09%
Revenue Next Year5.02%
Revenue Next 2Y5.61%
Revenue Next 3Y5.17%
Revenue Next 5YN/A
EBIT growth 1Y-7.92%
EBIT growth 3Y4.05%
EBIT growth 5Y8.18%
EBIT Next Year14.85%
EBIT Next 3Y10.29%
EBIT Next 5YN/A
FCF growth 1Y39.38%
FCF growth 3Y13.77%
FCF growth 5Y8.19%
OCF growth 1Y30.35%
OCF growth 3Y10.6%
OCF growth 5Y6.75%
CHEMED CORP / CHE FAQ
What is the fundamental rating for CHE stock?
ChartMill assigns a fundamental rating of 7 / 10 to CHE.
What is the valuation status for CHE stock?
ChartMill assigns a valuation rating of 5 / 10 to CHEMED CORP (CHE). This can be considered as Fairly Valued.
Can you provide the profitability details for CHEMED CORP?
CHEMED CORP (CHE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of CHEMED CORP (CHE) stock?
The Price/Earnings (PE) ratio for CHEMED CORP (CHE) is 19.64 and the Price/Book (PB) ratio is 5.68.
What is the financial health of CHEMED CORP (CHE) stock?
The financial health rating of CHEMED CORP (CHE) is 9 / 10.