CHEMED CORP (CHE) Stock Fundamental Analysis
USA - NYSE:CHE - US16359R1032 - Common Stock
434.61 USD
+4.02 (+0.93%)
434.61 USD
0 (0%)
Overall CHE gets a fundamental rating of 7 out of 10. We evaluated CHE against 100 industry peers in the Health Care Providers & Services industry. CHE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CHE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CHE had positive earnings in the past year.
CHE had a positive operating cash flow in the past year.
Each year in the past 5 years CHE has been profitable.
Each year in the past 5 years CHE had a positive operating cash flow.
1.2 Ratios
CHE has a Return On Assets of 17.17%. This is amongst the best in the industry. CHE outperforms 100.00% of its industry peers.
The Return On Equity of CHE (25.89%) is better than 92.00% of its industry peers.
The Return On Invested Capital of CHE (21.28%) is better than 93.00% 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 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.17% | ||
| ROE | 25.89% | ||
| ROIC | 21.28% |
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
Looking at the Profit Margin, with a value of 11.02%, CHE belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CHE has grown nicely.
CHE has a Operating Margin of 14.60%. This is amongst the best in the industry. CHE outperforms 87.00% of its industry peers.
CHE's Operating Margin has improved in the last couple of years.
The Gross Margin of CHE (32.88%) is comparable to the rest of the 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
CHE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CHE has less shares outstanding
The number of shares outstanding for CHE has been reduced compared to 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
An Altman-Z score of 11.76 indicates that CHE is not in any danger for bankruptcy at the moment.
CHE has a better Altman-Z score (11.76) than 95.00% of its industry peers.
CHE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.76 |
ROIC/WACC2.34
WACC9.11%
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 45.00% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that CHE should not have too much problems paying its short term obligations.
The Quick ratio of CHE (1.33) is comparable to the rest of the 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.
CHE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.64% yearly.
Looking at the last year, CHE shows a small growth in Revenue. The Revenue has grown by 6.45% in the last year.
Measured over the past years, CHE shows a small growth in Revenue. The Revenue has been growing by 4.63% on average per year.
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 6.12% yearly.
CHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
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
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
With a Price/Earnings ratio of 19.75, CHE is valued on the expensive side.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHE to the average of the S&P500 Index (25.83), we can say CHE is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.88, which indicates a correct valuation of CHE.
70.00% of the companies in the same industry are more expensive than CHE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CHE to the average of the S&P500 Index (32.68), we can say CHE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 16.88 |
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 69.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.57 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.86
EPS Next 2Y5.47%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 2.51, CHE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, 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
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 2Y5.47%
EPS Next 3Y6.12%
434.61
+4.02 (+0.93%)
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 Change-0.58%
Ins Owners1.52%
Ins Owner Change-5.37%
Market Cap6.33B
Revenue(TTM)2.53B
Net Income(TTM)278.81M
Analysts87.5
Price Target590.07 (35.77%)
Short Float %4.15%
Short Ratio3.19
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-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)-10.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-5.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 16.88 | ||
| P/S | 2.5 | ||
| P/FCF | 17.57 | ||
| P/OCF | 15.09 | ||
| P/B | 5.88 | ||
| P/tB | 19.5 | ||
| EV/EBITDA | 14.16 |
EPS(TTM)22
EY5.06%
EPS(NY)25.74
Fwd EY5.92%
FCF(TTM)24.74
FCFY5.69%
OCF(TTM)28.8
OCFY6.63%
SpS173.69
BVpS73.9
TBVpS22.29
PEG (NY)N/A
PEG (5Y)1.86
Graham Number191.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.17% | ||
| ROE | 25.89% | ||
| ROCE | 27.75% | ||
| ROIC | 21.28% | ||
| ROICexc | 23.57% | ||
| ROICexgc | 62.97% | ||
| 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 | 11.76 |
F-Score7
WACC9.11%
ROIC/WACC2.34
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 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 19.76 and the Price/Book (PB) ratio is 5.88.
What is the financial health of CHEMED CORP (CHE) stock?
The financial health rating of CHEMED CORP (CHE) is 9 / 10.