CHEMED CORP (CHE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHE - US16359R1032 - Common Stock
439.19 USD
-2.17 (-0.49%)
439.19 USD
0 (0%)
Taking everything into account, CHE scores 7 out of 10 in our fundamental rating. CHE was compared to 101 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 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.
Each year in the past 5 years CHE has been profitable.
CHE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CHE (17.17%) is better than 99.01% of its industry peers.
CHE has a better Return On Equity (25.89%) than 93.07% of its industry peers.
With an excellent Return On Invested Capital value of 21.27%, CHE belongs to the best of the industry, outperforming 93.07% 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 9.26%.
| 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 94.06% of the companies in the same industry.
In the last couple of years the Profit Margin of CHE has grown nicely.
CHE has a better Operating Margin (14.60%) than 87.13% of its industry peers.
CHE's Operating Margin has improved in the last couple of years.
CHE has a Gross Margin of 32.88%. This is in the better half of the industry: CHE outperforms 61.39% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHE is creating value.
The number of shares outstanding for CHE has been reduced compared to 1 year ago.
The number of shares outstanding for CHE has been reduced compared to 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
An Altman-Z score of 11.93 indicates that CHE is not in any danger for bankruptcy at the moment.
CHE has a Altman-Z score of 11.93. This is amongst the best in the industry. CHE outperforms 96.04% of its industry peers.
CHE has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
CHE has a Debt to FCF ratio of 0.00. This is amongst the best in the industry. CHE outperforms 95.05% 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's Debt to Equity ratio of 0.00 is amongst the best of the industry. CHE outperforms 87.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.93 |
ROIC/WACC2.42
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CHE should not have too much problems paying 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.
CHE has a Quick ratio (1.33) which 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
CHE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.97%.
CHE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.64% yearly.
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
The Earnings Per Share is expected to grow by 6.12% on average over the next years.
The Revenue is expected to grow by 5.09% on average over the next years.
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
Based on the Price/Earnings ratio of 19.96, the valuation of CHE can be described as rather expensive.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHE to the average of the S&P500 Index (26.31), we can say CHE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.06, the valuation of CHE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CHE is valued a bit cheaper than 68.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CHE to the average of the S&P500 Index (36.59), we can say CHE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHE is valued a bit cheaper than 61.39% 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 70.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y5.47%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.56%, which is pretty low.
Compared to an average industry Dividend Yield of 2.60, CHE pays a better dividend. On top of this CHE pays more dividend than 80.20% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
The dividend of CHE is nicely growing with an annual growth rate of 8.02%!
CHE has been paying a dividend for at least 10 years, so it has 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.
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%
439.19
-2.17 (-0.49%)
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 Change0.87%
Ins Owners1.52%
Ins Owner Change-6.01%
Market Cap6.40B
Revenue(TTM)2.53B
Net Income(TTM)278.81M
Analysts87.5
Price Target585.74 (33.37%)
Short Float %4.51%
Short Ratio3.31
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)1.23%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)2.83%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.06 | ||
| P/S | 2.53 | ||
| P/FCF | 17.75 | ||
| P/OCF | 15.25 | ||
| P/B | 5.94 | ||
| P/tB | 19.7 | ||
| EV/EBITDA | 14.53 |
EPS(TTM)22
EY5.01%
EPS(NY)25.74
Fwd EY5.86%
FCF(TTM)24.74
FCFY5.63%
OCF(TTM)28.8
OCFY6.56%
SpS173.69
BVpS73.9
TBVpS22.29
PEG (NY)N/A
PEG (5Y)1.88
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 | 11.93 |
F-Score7
WACC8.8%
ROIC/WACC2.42
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 19.96 and the Price/Book (PB) ratio is 5.94.
What is the financial health of CHEMED CORP (CHE) stock?
The financial health rating of CHEMED CORP (CHE) is 9 / 10.