CHEMED CORP (CHE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHE - US16359R1032 - Common Stock
427.86 USD
-2.96 (-0.69%)
427.86 USD
0 (0%)
CHE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. CHE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHE is valued correctly, but it does not seem to be growing.
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.
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 99.01% of the companies in the same industry.
CHE has a better Return On Equity (25.89%) than 92.08% of its industry peers.
The Return On Invested Capital of CHE (21.27%) is better than 94.06% 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 9.58%.
| 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
With an excellent Profit Margin value of 11.02%, CHE belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.
CHE's Profit Margin has improved in the last couple of years.
CHE's Operating Margin of 14.60% is amongst the best of the industry. CHE outperforms 87.13% of its industry peers.
In the last couple of years the Operating Margin of CHE has grown nicely.
The Gross Margin of CHE (32.88%) is better than 62.38% of its industry peers.
In the last couple of years the Gross Margin of CHE has grown nicely.
| 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
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.
CHE has less shares outstanding than it did 5 years ago.
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
CHE has an Altman-Z score of 11.57. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
CHE's Altman-Z score of 11.57 is amongst the best of the industry. CHE outperforms 96.04% 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 94.06% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that CHE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, CHE belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.57 |
ROIC/WACC2.37
WACC8.96%
2.3 Liquidity
CHE has a Current Ratio of 1.35. 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 Current ratio, with a value of 1.35, CHE is in line with its industry, outperforming 47.52% of the companies in the same industry.
CHE has a Quick Ratio of 1.33. This is a normal value and indicates that CHE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.33, CHE perfoms like the industry average, outperforming 52.48% of the companies in the same industry.
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
The earnings per share for CHE have decreased by -3.97% in the last 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.
The Revenue has been growing slightly by 6.45% in the past year.
The Revenue has been growing slightly by 4.63% on average over the past years.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.45, which indicates a rather expensive current valuation of CHE.
Compared to the rest of the industry, the Price/Earnings ratio of CHE indicates a somewhat cheap valuation: CHE is cheaper than 72.28% of the companies listed in the same industry.
CHE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.63, the valuation of CHE can be described as correct.
CHE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 72.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CHE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
CHE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CHE is cheaper than 62.38% of the companies in the same industry.
CHE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHE is cheaper than 72.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.83
EPS Next 2Y5.45%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, CHE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.60, CHE pays a better dividend. On top of this CHE pays more dividend than 81.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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 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
11.01% of the earnings are spent on dividend by CHE. This is a low number and sustainable payout ratio.
The dividend of CHE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.01%
EPS Next 2Y5.45%
EPS Next 3Y6.13%
427.86
-2.96 (-0.69%)
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 Cap6.06B
Revenue(TTM)2.53B
Net Income(TTM)278.81M
Analysts87.5
Price Target585.74 (36.9%)
Short Float %4.72%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend1.83
Dividend Growth(5Y)8.02%
DP11.01%
Div Incr Years16
Div Non Decr Years21
Ex-DateN/A
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%
PT rev (3m)-0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.1%
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 | 19.45 | ||
| Fwd PE | 16.63 | ||
| P/S | 2.39 | ||
| P/FCF | 16.81 | ||
| P/OCF | 14.44 | ||
| P/B | 5.63 | ||
| P/tB | 18.65 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)22
EY5.14%
EPS(NY)25.73
Fwd EY6.01%
FCF(TTM)25.46
FCFY5.95%
OCF(TTM)29.64
OCFY6.93%
SpS178.72
BVpS76.04
TBVpS22.94
PEG (NY)N/A
PEG (5Y)1.83
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 | 11.57 |
F-Score7
WACC8.96%
ROIC/WACC2.37
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 of CHEMED CORP (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.
Can you provide the financial health for CHE stock?
The financial health rating of CHEMED CORP (CHE) is 9 / 10.
What is the earnings growth outlook for CHEMED CORP?
The Earnings per Share (EPS) of CHEMED CORP (CHE) is expected to decline by -3.15% in the next year.