CHEMED CORP (CHE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHE - US16359R1032 - Common Stock
420.48 USD
+7.98 (+1.93%)
420.48 USD
0 (0%)
CHE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 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.
Each year in the past 5 years CHE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 17.17%, CHE belongs to the best of the industry, outperforming 99.00% of the companies in the same industry.
The Return On Equity of CHE (25.89%) is better than 92.00% of its industry peers.
CHE has a Return On Invested Capital of 21.27%. This is amongst the best in the industry. CHE outperforms 94.00% 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 9.42%.
| 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
The Profit Margin of CHE (11.02%) is better than 93.00% of its industry peers.
In the last couple of years the Profit Margin of CHE has grown nicely.
CHE has a better Operating Margin (14.60%) than 87.00% of its industry peers.
CHE's Operating Margin has improved in the last couple of years.
CHE has a better Gross Margin (32.88%) than 63.00% 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
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHE has less shares outstanding
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 11.28. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
CHE has a Altman-Z score of 11.28. This is amongst the best in the industry. CHE outperforms 96.00% 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.
The Debt to FCF ratio of CHE (0.00) is better than 95.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that CHE is not too dependend on debt financing.
CHE has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. CHE outperforms 87.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.28 |
ROIC/WACC2.41
WACC8.81%
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 48.00% 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.
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.
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 6.13% on average per year.
Based on estimates for the next years, CHE will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
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.
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
Based on the Price/Earnings ratio of 19.11, the valuation of CHE can be described as rather expensive.
CHE's Price/Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CHE to the average of the S&P500 Index (26.28), we can say CHE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.34, CHE is valued correctly.
Based on the Price/Forward Earnings ratio, CHE is valued a bit cheaper than 72.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.52. CHE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHE is valued a bit cheaper than the industry average as 63.00% of the companies are valued more expensively.
72.00% 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 | 16.52 | ||
| EV/EBITDA | 13.17 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y5.45%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, CHE is not a good candidate for dividend investing.
CHE's Dividend Yield is rather good when compared to the industry average which is at 2.55. CHE pays more dividend than 81.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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 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 2Y5.45%
EPS Next 3Y6.13%
420.48
+7.98 (+1.93%)
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 Cap5.95B
Revenue(TTM)2.53B
Net Income(TTM)278.81M
Analysts87.5
Price Target585.74 (39.3%)
Short Float %4.93%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)0.01%
EPS NQ rev (3m)2.84%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 16.34 | ||
| P/S | 2.35 | ||
| P/FCF | 16.52 | ||
| P/OCF | 14.19 | ||
| P/B | 5.53 | ||
| P/tB | 18.33 | ||
| EV/EBITDA | 13.17 |
EPS(TTM)22
EY5.23%
EPS(NY)25.73
Fwd EY6.12%
FCF(TTM)25.46
FCFY6.05%
OCF(TTM)29.64
OCFY7.05%
SpS178.72
BVpS76.04
TBVpS22.94
PEG (NY)N/A
PEG (5Y)1.8
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 | 11.28 |
F-Score7
WACC8.81%
ROIC/WACC2.41
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 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 19.11 and the Price/Book (PB) ratio is 5.53.
What is the financial health of CHEMED CORP (CHE) stock?
The financial health rating of CHEMED CORP (CHE) is 9 / 10.