CHEMED CORP (CHE) Stock Fundamental Analysis
NYSE:CHE - New York Stock Exchange, Inc. - US16359R1032 - Common Stock - Currency: USD
Taking everything into account, CHE scores 7 out of 10 in our fundamental rating. CHE was compared to 103 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 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.
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
CHE has a better Return On Assets (17.88%) than 98.06% of its industry peers.
The Return On Equity of CHE (26.13%) is better than 92.23% of its industry peers.
With an excellent Return On Invested Capital value of 22.08%, CHE belongs to the best of the industry, outperforming 94.17% 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 9.71%.
The last Return On Invested Capital (22.08%) for CHE is above the 3 year average (21.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.88% | ||
| ROE | 26.13% | ||
| ROIC | 22.08% |
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 12.40%, CHE belongs to the best of the industry, outperforming 98.06% of the companies in the same industry.
CHE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.62%, CHE belongs to the top of the industry, outperforming 92.23% of the companies in the same industry.
CHE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 34.82%, CHE is doing good in the industry, outperforming 64.08% of the companies in the same industry.
In the last couple of years the Gross Margin of CHE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.62% | ||
| PM (TTM) | 12.4% | ||
| GM | 34.82% |
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.
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
An Altman-Z score of 13.65 indicates that CHE is not in any danger for bankruptcy at the moment.
CHE has a better Altman-Z score (13.65) than 95.15% 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 better Debt to FCF ratio (0.00) than 92.23% 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 has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. CHE outperforms 86.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.65 |
ROIC/WACC2.47
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.73 indicates that CHE should not have too much problems paying its short term obligations.
The Current ratio of CHE (1.73) is better than 60.19% of its industry peers.
A Quick Ratio of 1.70 indicates that CHE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.70, CHE is doing good in the industry, outperforming 64.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
CHE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.97%.
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 quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
CHE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.63% yearly.
EPS 1Y (TTM)7.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%8.27%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%9.79%
3.2 Future
The Earnings Per Share is expected to grow by 7.90% 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 6.76% on average per year.
EPS Next Y10.34%
EPS Next 2Y9.62%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue Next Year8.61%
Revenue Next 2Y7.34%
Revenue Next 3Y6.76%
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
CHE is valuated rather expensively with a Price/Earnings ratio of 20.31.
CHE's Price/Earnings ratio is a bit cheaper when compared to the industry. CHE is cheaper than 64.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.98. CHE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.22, the valuation of CHE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHE indicates a somewhat cheap valuation: CHE is cheaper than 60.19% of the companies listed in the same industry.
CHE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
CHE's Enterprise Value to EBITDA is on the same level as the industry average.
CHE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.23 | ||
| EV/EBITDA | 16.8 |
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)1.96
PEG (5Y)1.91
EPS Next 2Y9.62%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, CHE is not a good candidate for dividend investing.
CHE's Dividend Yield is a higher than the industry average which is at 2.37.
With a Dividend Yield of 0.36, CHE pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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
9.19% of the earnings are spent on dividend by CHE. This is a low number and sustainable payout ratio.
The dividend of CHE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.19%
EPS Next 2Y9.62%
EPS Next 3Y7.9%
NYSE:CHE (6/30/2025, 1:04:04 PM)
478.71
-80.65 (-14.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.53%
Inst Owner Change0.67%
Ins Owners1.59%
Ins Owner Change1.7%
Market Cap7.00B
Analysts85.71
Price Target690.88 (44.32%)
Short Float %2.95%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Yearly Dividend1.83
Dividend Growth(5Y)8.02%
DP9.19%
Div Incr Years16
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.09%
Min EPS beat(2)-0.31%
Max EPS beat(2)0.5%
EPS beat(4)1
Avg EPS beat(4)-1.51%
Min EPS beat(4)-3.17%
Max EPS beat(4)0.5%
EPS beat(8)3
Avg EPS beat(8)-1.04%
EPS beat(12)6
Avg EPS beat(12)-0.62%
EPS beat(16)10
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-0.19%
Revenue beat(8)1
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.02%
Revenue beat(16)4
Avg Revenue beat(16)-0.8%
PT rev (1m)0%
PT rev (3m)-1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 17.22 | ||
| P/S | 2.81 | ||
| P/FCF | 22.23 | ||
| P/OCF | 19.15 | ||
| P/B | 5.93 | ||
| P/tB | 16.48 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)23.57
EY4.92%
EPS(NY)27.81
Fwd EY5.81%
FCF(TTM)21.53
FCFY4.5%
OCF(TTM)25
OCFY5.22%
SpS170.13
BVpS80.78
TBVpS29.04
PEG (NY)1.96
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.88% | ||
| ROE | 26.13% | ||
| ROCE | 28.8% | ||
| ROIC | 22.08% | ||
| ROICexc | 25.12% | ||
| ROICexgc | 62.73% | ||
| OM | 16.62% | ||
| PM (TTM) | 12.4% | ||
| GM | 34.82% | ||
| FCFM | 12.66% |
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%
ROICexcg growth 3Y-5.61%
ROICexcg 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 Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 80.07% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.69% | ||
| Profit Quality | 102.04% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 13.65 |
F-Score7
WACC8.93%
ROIC/WACC2.47
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)7.97%
EPS 3Y6.14%
EPS 5Y10.64%
EPS Q2Q%8.27%
EPS Next Y10.34%
EPS Next 2Y9.62%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue 1Y (TTM)8.52%
Revenue growth 3Y4.36%
Revenue growth 5Y4.63%
Sales Q2Q%9.79%
Revenue Next Year8.61%
Revenue Next 2Y7.34%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
EBIT growth 1Y10.75%
EBIT growth 3Y4.05%
EBIT growth 5Y8.18%
EBIT Next Year29.61%
EBIT Next 3Y12.91%
EBIT Next 5YN/A
FCF growth 1Y51.76%
FCF growth 3Y13.77%
FCF growth 5Y8.19%
OCF growth 1Y35.8%
OCF growth 3Y10.6%
OCF growth 5Y6.75%