CHEMED CORP (CHE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHE - US16359R1032 - Common Stock
427.86 USD
-2.96 (-0.69%)
427.86 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CHE. CHE was compared to 101 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 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.
CHE had a positive operating cash flow in the past year.
In the past 5 years CHE has always been profitable.
Each year in the past 5 years CHE had a positive operating cash flow.
1.2 Ratios
CHE's Return On Assets of 17.17% is amongst the best of the industry. CHE outperforms 99.01% of its industry peers.
CHE's Return On Equity of 25.89% is amongst the best of the industry. CHE outperforms 92.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.27%, CHE belongs to the top of the industry, outperforming 94.06% 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 9.58%.
| 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 has a Profit Margin of 11.02%. This is amongst the best in the industry. CHE outperforms 93.07% of its industry peers.
CHE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.60%, CHE belongs to the top of the industry, outperforming 87.13% 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 32.88%. This is in the better half of the industry: CHE outperforms 63.37% 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.
Compared to 1 year ago, CHE has less shares outstanding
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 11.52. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
CHE has a Altman-Z score of 11.52. 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.
With an excellent Debt to FCF ratio value of 0.00, CHE belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that CHE is not too dependend on debt financing.
The Debt to Equity ratio of CHE (0.00) is better than 86.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.52 |
ROIC/WACC2.37
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CHE should not have too much problems paying its short term obligations.
CHE has a Current ratio (1.35) which is in line with 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 53.47% of the companies in the same 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.
The Revenue has been growing slightly by 6.45% in the past 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
The Earnings Per Share is expected to grow by 6.13% on average over the next years.
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.
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 19.45, CHE is valued on the expensive side.
CHE's Price/Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 72.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. CHE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.63, CHE is valued correctly.
Based on the Price/Forward Earnings ratio, CHE is valued a bit cheaper than the industry average as 71.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CHE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHE is valued a bit cheaper than the industry average as 62.38% of the companies are valued more expensively.
CHE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHE is cheaper than 72.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.83
EPS Next 2Y5.45%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.55%, which is pretty low.
CHE's Dividend Yield is rather good when compared to the industry average which is at 0.60. CHE pays more dividend than 81.19% of the companies in the same industry.
With a Dividend Yield of 0.55, CHE pays less dividend than the S&P500 average, which is at 2.00.
| 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.
The dividend of CHE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.01%
EPS Next 2Y5.45%
EPS Next 3Y6.13%
427.86
-2.96 (-0.69%)
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 Cap6.06B
Revenue(TTM)2.53B
Net Income(TTM)278.81M
Analysts87.5
Price Target585.74 (36.9%)
Short Float %4.72%
Short Ratio4.01
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-DateN/A
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)-0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 16.63 | ||
| P/S | 2.39 | ||
| P/FCF | 16.81 | ||
| P/OCF | 14.44 | ||
| P/B | 5.63 | ||
| P/tB | 18.65 | ||
| EV/EBITDA | 13.67 |
EPS(TTM)22
EY5.14%
EPS(NY)25.73
Fwd EY6.01%
FCF(TTM)25.46
FCFY5.95%
OCF(TTM)29.64
OCFY6.93%
SpS178.72
BVpS76.04
TBVpS22.94
PEG (NY)N/A
PEG (5Y)1.83
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 | 11.52 |
F-Score7
WACC8.96%
ROIC/WACC2.37
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 of CHEMED CORP (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.
Can you provide the financial health for CHE stock?
The financial health rating of CHEMED CORP (CHE) is 9 / 10.
What is the earnings growth outlook for CHEMED CORP?
The Earnings per Share (EPS) of CHEMED CORP (CHE) is expected to decline by -3.15% in the next year.