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%)
CHE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. Both the health and profitability get an excellent rating, making CHE a very profitable company, without any liquidiy or solvency issues. 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.
In the past 5 years CHE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.17%, CHE belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
With an excellent Return On Equity value of 25.89%, CHE belongs to the best of the industry, outperforming 92.08% of the companies in the same industry.
CHE's Return On Invested Capital of 21.27% is amongst the best of the industry. CHE outperforms 94.06% 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 9.58%.
| 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
Looking at the Profit Margin, with a value of 11.02%, CHE belongs to the top of the industry, outperforming 93.07% of the companies in the same industry.
In the last couple of years the Profit Margin of CHE has grown nicely.
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's Gross Margin of 32.88% is fine compared to the rest 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHE is creating value.
CHE has less shares outstanding than it did 1 year ago.
CHE has less shares outstanding than it did 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 11.52 indicates that CHE is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHE (11.52) is better than 96.04% 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.
Looking at the Debt to FCF ratio, with a value of 0.00, CHE belongs to the top 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.
CHE has a better Debt to Equity ratio (0.00) than 86.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.52 |
ROIC/WACC2.34
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CHE should not have too much problems paying its short term obligations.
The Current ratio of CHE (1.35) is comparable to the rest of the 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 of 1.33. This is comparable to the rest of the industry: CHE outperforms 53.47% of its industry peers.
CHE does not score too well on the current and quick ratio evaluation. However, as it has 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%.
Measured over the past years, CHE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.64% on average per year.
Looking at the last year, CHE shows a small growth in Revenue. The Revenue has grown by 6.45% in the last year.
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
CHE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.13% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
CHE is valuated rather expensively with a Price/Earnings ratio of 19.45.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than 72.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, CHE is valued a bit cheaper.
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 71.29% of the companies in the same industry.
CHE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| 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 62.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHE is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
CHE has an outstanding profitability rating, which 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
With a yearly dividend of 0.55%, CHE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.60, CHE pays a better dividend. On top of this CHE pays more dividend than 81.19% of the companies listed 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
The dividend of CHE is nicely growing with an annual growth rate of 8.02%!
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)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%
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
WACC9.07%
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-3.15%
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.