CHEMED CORP (CHE) Stock Fundamental Analysis
USA - NYSE:CHE - US16359R1032 - Common Stock
441.74 USD
+12.41 (+2.89%)
441.74 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CHE. CHE was compared to 100 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 valuation in line with the averages, 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
CHE has a better Return On Assets (17.17%) than 99.00% of its industry peers.
CHE's Return On Equity of 25.89% is amongst the best of the industry. CHE outperforms 93.00% of its industry peers.
CHE's Return On Invested Capital of 21.27% is amongst the best of the industry. CHE outperforms 93.00% 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 9.38%.
| 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
CHE's Profit Margin of 11.02% is amongst the best of the industry. CHE outperforms 94.00% of its industry peers.
In the last couple of years the Profit Margin of CHE has grown nicely.
Looking at the Operating Margin, with a value of 14.60%, CHE belongs to the top of the industry, outperforming 87.00% of the companies in the same industry.
CHE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.88%, CHE is in the better half of the industry, outperforming 61.00% 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 | 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.
Compared to 1 year ago, CHE has less shares outstanding
CHE has less shares outstanding than it did 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
CHE has an Altman-Z score of 11.74. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
CHE's Altman-Z score of 11.74 is amongst the best of the industry. CHE outperforms 95.00% 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 has a Debt to FCF ratio of 0.00. This is amongst the best in the industry. CHE outperforms 95.00% 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 has a better Debt to Equity ratio (0.00) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.74 |
ROIC/WACC2.36
WACC9%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CHE should not have too much problems paying its short term obligations.
CHE's Current ratio of 1.35 is in line compared to the rest of the industry. CHE outperforms 45.00% of its industry peers.
A Quick Ratio of 1.33 indicates that CHE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.33, CHE is in line with its industry, outperforming 50.00% of the companies in the same industry.
CHE does not score too well on the current and quick ratio evaluation. However, as it has 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%.
The Earnings Per Share has been growing by 10.64% on average over the past years. This is quite good.
CHE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
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
Based on estimates for the next years, CHE will show a small growth in Earnings Per Share. The EPS will grow by 6.12% on average per year.
Based on estimates for the next years, CHE will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y-3.26%
EPS Next 2Y5.47%
EPS Next 3Y6.12%
EPS Next 5YN/A
Revenue Next Year4.98%
Revenue Next 2Y5.86%
Revenue Next 3Y5.09%
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
A Price/Earnings ratio of 20.08 indicates a rather expensive 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 67.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, CHE is valued at the same level.
CHE is valuated rather expensively with a Price/Forward Earnings ratio of 17.16.
66.00% 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 34.08, CHE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 17.16 |
4.2 Price Multiples
CHE's Enterprise Value to EBITDA is on the same level as the industry average.
68.00% 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 | 17.86 | ||
| EV/EBITDA | 14.12 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.89
EPS Next 2Y5.47%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, CHE is not a good candidate for dividend investing.
CHE's Dividend Yield is a higher than the industry average which is at 2.57.
Compared to an average S&P500 Dividend Yield of 2.44, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of CHE grows each year by 8.02%, which is quite nice.
CHE has been paying a dividend for at least 10 years, so it has 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
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 2Y5.47%
EPS Next 3Y6.12%
441.74
+12.41 (+2.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.28%
Inst Owner Change1.08%
Ins Owners1.52%
Ins Owner Change-6.16%
Market Cap6.44B
Revenue(TTM)2.53B
Net Income(TTM)278.81M
Analysts87.5
Price Target590.07 (33.58%)
Short Float %4.51%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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%
PT rev (3m)1.98%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)2.83%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-4.99%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 17.16 | ||
| P/S | 2.54 | ||
| P/FCF | 17.86 | ||
| P/OCF | 15.34 | ||
| P/B | 5.98 | ||
| P/tB | 19.82 | ||
| EV/EBITDA | 14.12 |
EPS(TTM)22
EY4.98%
EPS(NY)25.74
Fwd EY5.83%
FCF(TTM)24.74
FCFY5.6%
OCF(TTM)28.8
OCFY6.52%
SpS173.69
BVpS73.9
TBVpS22.29
PEG (NY)N/A
PEG (5Y)1.89
Graham Number191.26
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 | 11.74 |
F-Score7
WACC9%
ROIC/WACC2.36
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-3.26%
EPS Next 2Y5.47%
EPS Next 3Y6.12%
EPS Next 5YN/A
Revenue 1Y (TTM)6.45%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%3.09%
Revenue Next Year4.98%
Revenue Next 2Y5.86%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y-7.92%
EBIT growth 3Y4.05%
EBIT growth 5Y8.18%
EBIT Next Year15.23%
EBIT Next 3Y10.26%
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 4 / 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 20.08 and the Price/Book (PB) ratio is 5.98.
What is the financial health of CHEMED CORP (CHE) stock?
The financial health rating of CHEMED CORP (CHE) is 9 / 10.