CHEMED CORP (CHE) Stock Fundamental Analysis
NYSE:CHE - New York Stock Exchange, Inc. - US16359R1032 - Common Stock - Currency: USD
Taking everything into account, CHE scores 7 out of 10 in our fundamental rating. CHE was compared to 108 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 not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years CHE has always been profitable.
CHE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.05%, CHE belongs to the top of the industry, outperforming 99.07% of the companies in the same industry.
CHE's Return On Equity of 24.42% is amongst the best of the industry. CHE outperforms 93.46% of its industry peers.
The Return On Invested Capital of CHE (20.46%) is better than 96.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHE is significantly above the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.05% | ||
| ROE | 24.42% | ||
| ROIC | 20.46% |
ROA(3y)17.88%
ROA(5y)18.65%
ROE(3y)32.98%
ROE(5y)32.93%
ROIC(3y)23.23%
ROIC(5y)22.57%
1.3 Margins
Looking at the Profit Margin, with a value of 12.69%, CHE belongs to the top of the industry, outperforming 96.26% of the companies in the same industry.
In the last couple of years the Profit Margin of CHE has remained more or less at the same level.
With an excellent Operating Margin value of 16.88%, CHE belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
In the last couple of years the Operating Margin of CHE has grown nicely.
CHE has a Gross Margin of 35.66%. This is in the better half of the industry: CHE outperforms 62.62% of its industry peers.
CHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.88% | ||
| PM (TTM) | 12.69% | ||
| GM | 35.66% |
OM growth 3Y0.01%
OM growth 5Y2.99%
PM growth 3Y-7.82%
PM growth 5Y0.86%
GM growth 3Y1.51%
GM growth 5Y2.57%
2. Health
2.1 Basic Checks
CHE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CHE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CHE has been reduced compared to 5 years ago.
The debt/assets ratio for CHE has been reduced compared to a year ago.
2.2 Solvency
CHE has an Altman-Z score of 13.60. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.60, CHE belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.6 |
ROIC/WACC2.27
WACC9.02%
2.3 Liquidity
CHE has a Current Ratio of 1.85. 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 1.85, CHE is in the better half of the industry, outperforming 67.29% of the companies in the same industry.
CHE has a Quick Ratio of 1.81. 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 decent Quick ratio value of 1.81, CHE is doing good in the industry, outperforming 69.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
CHE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.19%, which is quite good.
The Earnings Per Share has been growing by 12.41% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.83% in the past year.
CHE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
EPS 1Y (TTM)13.19%
EPS 3Y5.86%
EPS 5Y12.41%
EPS Q2Q%6.02%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y2.88%
Revenue growth 5Y4.9%
Sales Q2Q%7.38%
3.2 Future
CHE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.41% yearly.
CHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.34% yearly.
EPS Next Y8.68%
EPS Next 2Y8.26%
EPS Next 3Y7.41%
EPS Next 5YN/A
Revenue Next Year7.17%
Revenue Next 2Y7.11%
Revenue Next 3Y6.34%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.84 indicates a rather expensive valuation of CHE.
CHE's Price/Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 64.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of CHE to the average of the S&P500 Index (29.63), we can say CHE is valued inline with the index average.
The Price/Forward Earnings ratio is 21.73, which indicates a rather expensive current valuation of CHE.
CHE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 63.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CHE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHE.
Based on the Price/Free Cash Flow ratio, CHE is valued a bit cheaper than the industry average as 68.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.18 | ||
| EV/EBITDA | 17.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHE does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)1.92
EPS Next 2Y8.26%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, CHE is not a good candidate for dividend investing.
CHE's Dividend Yield is a higher than the industry average which is at 2.95.
With a Dividend Yield of 0.36, CHE pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
5.2 History
The dividend of CHE is nicely growing with an annual growth rate of 6.02%!
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)6.02%
Div Incr Years16
Div Non Decr Years21
5.3 Sustainability
CHE pays out 8.50% of its income as dividend. This is a sustainable payout ratio.
CHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.5%
EPS Next 2Y8.26%
EPS Next 3Y7.41%
546.24
-3.86 (-0.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.93%
Inst Owner Change-1.48%
Ins Owners1.59%
Ins Owner Change-2.41%
Market Cap8.18B
Analysts85.71
Price Target676.94 (23.93%)
Short Float %2.01%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Yearly Dividend1.57
Dividend Growth(5Y)6.02%
DP8.5%
Div Incr Years16
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.11%
Min EPS beat(2)-3.17%
Max EPS beat(2)-3.05%
EPS beat(4)1
Avg EPS beat(4)-1.93%
Min EPS beat(4)-6.05%
Max EPS beat(4)4.55%
EPS beat(8)3
Avg EPS beat(8)-1.12%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)10
Avg EPS beat(16)1.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-1.11%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)2
Avg Revenue beat(12)-1.29%
Revenue beat(16)5
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)-3.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.73 | ||
| P/S | 3.44 | ||
| P/FCF | 26.18 | ||
| P/OCF | 22.66 | ||
| P/B | 6.62 | ||
| P/tB | 17.26 | ||
| EV/EBITDA | 17.25 |
EPS(TTM)22.91
EY4.19%
EPS(NY)25.14
Fwd EY4.6%
FCF(TTM)20.87
FCFY3.82%
OCF(TTM)24.11
OCFY4.41%
SpS158.69
BVpS82.49
TBVpS31.65
PEG (NY)2.75
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.05% | ||
| ROE | 24.42% | ||
| ROCE | 26.67% | ||
| ROIC | 20.46% | ||
| ROICexc | 24.32% | ||
| ROICexgc | 61.02% | ||
| OM | 16.88% | ||
| PM (TTM) | 12.69% | ||
| GM | 35.66% | ||
| FCFM | 13.15% |
ROA(3y)17.88%
ROA(5y)18.65%
ROE(3y)32.98%
ROE(5y)32.93%
ROIC(3y)23.23%
ROIC(5y)22.57%
ROICexc(3y)25.65%
ROICexc(5y)24.79%
ROICexgc(3y)71.8%
ROICexgc(5y)75.27%
ROCE(3y)30.5%
ROCE(5y)29.6%
ROICexcg growth 3Y-11.38%
ROICexcg growth 5Y-6.15%
ROICexc growth 3Y-1.47%
ROICexc growth 5Y1.05%
OM growth 3Y0.01%
OM growth 5Y2.99%
PM growth 3Y-7.82%
PM growth 5Y0.86%
GM growth 3Y1.51%
GM growth 5Y2.57%
F-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 77.36% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.83% | ||
| Profit Quality | 103.6% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 13.6 |
F-Score8
WACC9.02%
ROIC/WACC2.27
Cap/Depr(3y)96.51%
Cap/Depr(5y)102.13%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.7%
Profit Quality(3y)98.19%
Profit Quality(5y)108.44%
High Growth Momentum
Growth
EPS 1Y (TTM)13.19%
EPS 3Y5.86%
EPS 5Y12.41%
EPS Q2Q%6.02%
EPS Next Y8.68%
EPS Next 2Y8.26%
EPS Next 3Y7.41%
EPS Next 5YN/A
Revenue 1Y (TTM)6.83%
Revenue growth 3Y2.88%
Revenue growth 5Y4.9%
Sales Q2Q%7.38%
Revenue Next Year7.17%
Revenue Next 2Y7.11%
Revenue Next 3Y6.34%
Revenue Next 5YN/A
EBIT growth 1Y20.64%
EBIT growth 3Y2.89%
EBIT growth 5Y8.04%
EBIT Next Year30.44%
EBIT Next 3Y14.18%
EBIT Next 5YN/A
FCF growth 1Y42.1%
FCF growth 3Y-14.04%
FCF growth 5Y3.15%
OCF growth 1Y32.16%
OCF growth 3Y-12.28%
OCF growth 5Y2.84%