CHEMED CORP (CHE) Stock Fundamental Analysis
NYSE:CHE - New York Stock Exchange, Inc. - US16359R1032 - Common Stock
We assign a fundamental rating of 7 out of 10 to CHE. CHE was compared to 108 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHE was profitable.
CHE had a positive operating cash flow in the past year.
CHE had positive earnings in each of the past 5 years.
CHE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHE has a better Return On Assets (17.05%) than 99.07% of its industry peers.
CHE has a better Return On Equity (24.42%) than 94.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.46%, CHE belongs to the top of the industry, outperforming 95.33% of the companies in the same industry.
CHE had an Average Return On Invested Capital over the past 3 years of 23.23%. This is significantly above the industry average of 8.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.05% | ||
| ROE | 24.42% | ||
| ROIC | 20.46% |
ROA(3y)17.88%
ROA(5y)18.65%
ROE(3y)32.98%
ROE(5y)32.93%
ROIC(3y)23.23%
ROIC(5y)22.57%
1.3 Margins
With an excellent Profit Margin value of 12.69%, CHE belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
CHE's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 16.88%, CHE belongs to the top of the industry, outperforming 96.26% of the companies in the same industry.
CHE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.66%, CHE is in the better half of the industry, outperforming 62.62% of the companies in the same industry.
CHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.88% | ||
| PM (TTM) | 12.69% | ||
| GM | 35.66% |
OM growth 3Y0.01%
OM growth 5Y2.99%
PM growth 3Y-7.82%
PM growth 5Y0.86%
GM growth 3Y1.51%
GM growth 5Y2.57%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHE has less shares outstanding
Compared to 1 year ago, CHE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.75 indicates that CHE is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHE (13.75) is better than 95.33% 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 | 13.75 |
ROIC/WACC2.23
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.85 indicates that CHE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.85, CHE is in the better half of the industry, outperforming 68.22% of the companies in the same industry.
CHE has a Quick Ratio of 1.81. This is a normal value and indicates that CHE is financially healthy and should not expect problems in meeting its short term obligations.
CHE's Quick ratio of 1.81 is fine compared to the rest of the industry. CHE outperforms 70.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.19% over the past year.
The Earnings Per Share has been growing by 12.41% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.83% in the past year.
Measured over the past years, CHE shows a small growth in Revenue. The Revenue has been growing by 4.90% on average per year.
EPS 1Y (TTM)13.19%
EPS 3Y5.86%
EPS 5Y12.41%
EPS Q2Q%6.02%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y2.88%
Revenue growth 5Y4.9%
Sales Q2Q%7.38%
3.2 Future
The Earnings Per Share is expected to grow by 7.41% on average over the next years.
CHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.34% yearly.
EPS Next Y8.68%
EPS Next 2Y8.26%
EPS Next 3Y7.41%
EPS Next 5YN/A
Revenue Next Year7.17%
Revenue Next 2Y7.11%
Revenue Next 3Y6.34%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.06, which indicates a rather expensive current valuation of CHE.
Based on the Price/Earnings ratio, CHE is valued a bit cheaper than the industry average as 65.42% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.19. CHE is around the same levels.
CHE is valuated rather expensively with a Price/Forward Earnings ratio of 21.92.
Based on the Price/Forward Earnings ratio, CHE is valued a bit cheaper than 62.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.37, CHE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 21.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CHE is valued a bit cheaper than 69.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.41 | ||
| EV/EBITDA | 17.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CHE may justify a higher PE ratio.
PEG (NY)2.77
PEG (5Y)1.94
EPS Next 2Y8.26%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
CHE has a yearly dividend return of 0.36%, which is pretty low.
Compared to an average industry Dividend Yield of 2.87, CHE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.36, CHE pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
5.2 History
On average, the dividend of CHE grows each year by 6.02%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.02%
Div Incr Years16
Div Non Decr Years21
5.3 Sustainability
CHE pays out 8.50% of its income as dividend. This is a sustainable payout ratio.
The dividend of CHE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.5%
EPS Next 2Y8.26%
EPS Next 3Y7.41%
CHEMED CORP
NYSE:CHE (1/22/2025, 8:13:16 PM)
After market: 551.14 0 (0%)551.14
-8.08 (-1.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.1%
Inst Owner Change-0.46%
Ins Owners1.61%
Ins Owner Change-7.74%
Market Cap8.26B
Analysts85.71
Price Target676.94 (22.83%)
Short Float %1.88%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Yearly Dividend1.57
Dividend Growth(5Y)6.02%
DP8.5%
Div Incr Years16
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.11%
Min EPS beat(2)-3.17%
Max EPS beat(2)-3.05%
EPS beat(4)1
Avg EPS beat(4)-1.93%
Min EPS beat(4)-6.05%
Max EPS beat(4)4.55%
EPS beat(8)3
Avg EPS beat(8)-1.12%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)10
Avg EPS beat(16)1.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-1.11%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)2
Avg Revenue beat(12)-1.29%
Revenue beat(16)5
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)-3.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 21.92 | ||
| P/S | 3.47 | ||
| P/FCF | 26.41 | ||
| P/OCF | 22.86 | ||
| P/B | 6.68 | ||
| P/tB | 17.41 | ||
| EV/EBITDA | 17.54 |
EPS(TTM)22.91
EY4.16%
EPS(NY)25.14
Fwd EY4.56%
FCF(TTM)20.87
FCFY3.79%
OCF(TTM)24.11
OCFY4.37%
SpS158.69
BVpS82.49
TBVpS31.65
PEG (NY)2.77
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.05% | ||
| ROE | 24.42% | ||
| ROCE | 26.67% | ||
| ROIC | 20.46% | ||
| ROICexc | 24.32% | ||
| ROICexgc | 61.02% | ||
| OM | 16.88% | ||
| PM (TTM) | 12.69% | ||
| GM | 35.66% | ||
| FCFM | 13.15% |
ROA(3y)17.88%
ROA(5y)18.65%
ROE(3y)32.98%
ROE(5y)32.93%
ROIC(3y)23.23%
ROIC(5y)22.57%
ROICexc(3y)25.65%
ROICexc(5y)24.79%
ROICexgc(3y)71.8%
ROICexgc(5y)75.27%
ROCE(3y)30.5%
ROCE(5y)29.6%
ROICexcg growth 3Y-11.38%
ROICexcg growth 5Y-6.15%
ROICexc growth 3Y-1.47%
ROICexc growth 5Y1.05%
OM growth 3Y0.01%
OM growth 5Y2.99%
PM growth 3Y-7.82%
PM growth 5Y0.86%
GM growth 3Y1.51%
GM growth 5Y2.57%
F-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 77.36% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.83% | ||
| Profit Quality | 103.6% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 13.75 |
F-Score8
WACC9.17%
ROIC/WACC2.23
Cap/Depr(3y)96.51%
Cap/Depr(5y)102.13%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.7%
Profit Quality(3y)98.19%
Profit Quality(5y)108.44%
High Growth Momentum
Growth
EPS 1Y (TTM)13.19%
EPS 3Y5.86%
EPS 5Y12.41%
EPS Q2Q%6.02%
EPS Next Y8.68%
EPS Next 2Y8.26%
EPS Next 3Y7.41%
EPS Next 5YN/A
Revenue 1Y (TTM)6.83%
Revenue growth 3Y2.88%
Revenue growth 5Y4.9%
Sales Q2Q%7.38%
Revenue Next Year7.17%
Revenue Next 2Y7.11%
Revenue Next 3Y6.34%
Revenue Next 5YN/A
EBIT growth 1Y20.64%
EBIT growth 3Y2.89%
EBIT growth 5Y8.04%
EBIT Next Year30.44%
EBIT Next 3Y14.18%
EBIT Next 5YN/A
FCF growth 1Y42.1%
FCF growth 3Y-14.04%
FCF growth 5Y3.15%
OCF growth 1Y32.16%
OCF growth 3Y-12.28%
OCF growth 5Y2.84%