CHEMED CORP (CHE)
US16359R1032 - Common Stock
CHE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 108 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 has a correct valuation and a medium growth rate.
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.
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.
With an excellent Return On Equity value of 24.42%, CHE belongs to the best of the industry, outperforming 94.39% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for CHE is significantly above the industry average of 8.15%.
| 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
The Profit Margin of CHE (12.69%) is better than 97.20% of its industry peers.
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 63.55% 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
CHE has an Altman-Z score of 13.14. This indicates that CHE is financially healthy and has little risk of bankruptcy at the moment.
CHE's Altman-Z score of 13.14 is amongst the best of the industry. CHE outperforms 96.26% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.14 |
ROIC/WACC2.24
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.85 indicates that CHE should not have too much problems paying its short term obligations.
The Current ratio of CHE (1.85) is better than 69.16% of its industry peers.
A Quick Ratio of 1.81 indicates that CHE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.81, CHE is doing good in the industry, outperforming 71.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
CHE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.19%, which is quite good.
The Earnings Per Share has been growing by 12.41% 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 6.83%.
The Revenue has been growing slightly by 4.90% on average over the past years.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.35, 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 66.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. CHE is around the same levels.
Based on the Price/Forward Earnings ratio of 20.37, the valuation of CHE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CHE is valued a bit cheaper than 63.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CHE to the average of the S&P500 Index (23.73), we can say CHE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
CHE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CHE is valued a bit cheaper than 68.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.54 | ||
| EV/EBITDA | 16.38 |
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)2.58
PEG (5Y)1.8
EPS Next 2Y8.26%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, CHE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.83, CHE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CHE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of CHE is nicely growing with an annual growth rate of 6.02%!
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
8.50% of the earnings are spent on dividend by CHE. This is a low number and sustainable payout ratio.
CHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.5%
EPS Next 2Y8.26%
EPS Next 3Y7.41%
CHEMED CORP
NYSE:CHE (12/23/2024, 12:35:37 PM)
512.12
-11.04 (-2.11%)
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-1.18%
Ins Owners1.61%
Ins Owner Change-7.8%
Market Cap7.67B
Analysts85.71
Price Target676.94 (32.18%)
Short Float %1.65%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Dividend Growth(5Y)6.02%
DP8.5%
Div Incr Years16
Div Non Decr Years21
Ex-Date
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)-3.11%
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)-0.04%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.37 | ||
| P/S | 3.23 | ||
| P/FCF | 24.54 | ||
| P/OCF | 21.24 | ||
| P/B | 6.21 | ||
| P/tB | 16.18 | ||
| EV/EBITDA | 16.38 |
EPS(TTM)22.91
EY4.47%
EPS(NY)25.14
Fwd EY4.91%
FCF(TTM)20.87
FCFY4.07%
OCF(TTM)24.11
OCFY4.71%
SpS158.69
BVpS82.49
TBVpS31.65
PEG (NY)2.58
PEG (5Y)1.8
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 | 13.14 |
F-Score8
WACC9.12%
ROIC/WACC2.24
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%