Chemed Corporation
$426.86
-0.030%Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in two segments, VITAS and Roto-Rooter. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 23.2).
Valuation inputs: P/E 23.2, earnings yield +4.3%, momentum -0.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +27.1%, ROIC +17.9%).
Profitability stack: net margin +10.5%, ROE +27.1%, ROIC +17.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +40.3%, momentum -0.0%, net margin +10.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Chemed Corporation Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Slight earnings decline may be temporary. Monitor future quarters for trend reversal.
Price-EPS Relationship
Both price and earnings are declining together, reflecting deteriorating business fundamentals.
Stock Price Change
Over the 1Y period, stock price has decreased by 24.0%.
P/E Ratio (TTM)
Moderate P/E ratio suggests fair market valuation relative to earnings.
Chemed Corporation Fair Value Envelope
Chemed Corporation Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Chemed Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Chemed Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Negative working capital with limited cash reserves requires immediate attention—potential liquidity crisis if not addressed promptly.
Chemed Corporation Street Expectations Map
Wall Street analysts project that CHE stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 475.00, with estimates ranging from a low of 475.00 to a high of 475.00.
The consensus 1-year price target stands at 475.00, with estimates ranging from a low of 475.00 to a high of 475.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Chemed Corporation Insider Positioning
During the last 12 months, insiders have purchased $83K and sold $9.86M worth of CHE shares, resulting in $9.77M of net selling activity.
3 Months
0
0.00
6.1K
2.45M
-2.4M
-$2.45M
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
5.2K
2.33M
-2.3M
-$2.33M
9-12 Months
200
83.42K
12.0K
5.08M
-5.0M
-$5.00M
Top Buyers
Walsh George J Iii
Director
$83K
Top Sellers
Mcnamara Kevin J
Director, Officer: President And Ceo
$5.32M
Westfall Nicholas Michael
Officer: Executive Vice President
$4.22M
Walsh George J Iii
Director
$219K
Grace Patrick P
Director
$95K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $9.77M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
4 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
che Dividend History
Learning Layer
Related Guides
Build conviction on CHE by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.