A Business at a Glance
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CHEMED CORP
CHE
$7.4B
Mkt Cap
$511.13
+1.61%
CHEMED CORP (CHE) has a current P/E ratio of 27.9, compared to its historical median P/E of 28.9. The stock is currently considered Fair based on its historical valuation range.
CHEMED CORP (CHE) has a 5-year average return on invested capital (ROIC) of 28.4%. This indicates strong capital allocation and a potential competitive advantage.
CHEMED CORP (CHE) has a market capitalization of $6.8B. It is classified as a mid-cap stock.
Yes, CHEMED CORP (CHE) pays a dividend with a trailing twelve-month yield of 0.48%. The company also returns capital through share buybacks, with a buyback yield of 8.67%.
Based on historical P/E analysis, CHEMED CORP (CHE) appears fair. The current P/E of 27.9 is 3% below its historical median of 28.9. The estimated fair value CAGR (P/E method) is 4.7%.
CHEMED CORP (CHE) operates in the Services-Home Health Care Services industry, within the Healthcare sector.
CHEMED CORP (CHE) reported annual revenue of $2.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Chemed Corporation operates two decentralized business segments: VITAS, which provides hospice and palliative care services through a network of physicians, nurses, home health aides, social workers, clergy and volunteers; and Roto-Rooter, which delivers plumbing, drain cleaning, excavation, water restoration and related services to residential and commercial customers. VITAS generates over 90% of its revenue from the Medicare program and operates through a mix of company-owned locations and independent contractors, with significant concentration in Florida where seasonal patient relocations during winter months drive higher admissions. Roto-Rooter operates through both company-owned branches and independent contractor franchises, competing on service quality, brand recognition, emergency availability, and pricing in a fragmented market dominated by local and regional competitors. The company's business model is asset-light and decentralized, with minimal integrated functions between operating units and corporate management focused on long-term strategic planning, capital allocation, and key executive selection. VITAS differentiates itself primarily through quality and responsive service delivery within Medicare's conditions of participation, while Roto-Rooter leverages highly recognized trademarks dating to 1935 as a significant competitive moat. Both segments operate in mature, competitive markets with distinct unit economics: VITAS operates on a per-patient-day basis with Medicare reimbursement subject to aggregate payment caps by geographic region, while Roto-Rooter generates revenue through service calls with variable pricing and margin pressures from increased insurance scrutiny and marketing costs.
【VITAS momentum accelerating】 Management expects VITAS to deliver stronger financial results in 2026 as the company rebalances its patient mix between short-stay and long-stay admissions, with admissions growth and improved revenue per day driving higher EBITDA margins. The Florida Medicare cap position is expected to remain manageable with no significant billing limitations anticipated for the 2026 fiscal year, supported by new market openings in Marion, Pasco, and Pinellas Counties that are exceeding admission expectations. Roto-Rooter faces near-term headwinds from elevated internet marketing costs and ongoing billing and collection challenges related to centralization efforts, though management expects these operational improvements to generate $4–6 million in tailwinds as the year progresses and centralized staff gain proficiency. The company anticipates continued lead volume improvement from search engine optimization initiatives and expanded commercial sales resources, with management confident in achieving guidance despite acknowledging a difficult operating environment that is expected to be temporary with no impairment to long-term growth outlook.
| Metric | Target | Period |
|---|---|---|
| VITAS ADC growth | 4.5%-5.5% | FY2026 |
| VITAS revenue growth (excluding Medicare cap) | 6.5%-7.5% | FY2026 |
| VITAS EBITDA margin (excluding Medicare cap) | 18%-18.5% | FY2026 |
| Roto-Rooter revenue growth | 3%-3.5% | FY2026 |
| Roto-Rooter adjusted EBITDA margin | 21.5%-22.5% | FY2026 |
| Adjusted earnings per diluted share | $24-$24.75 | FY2026 |
VITAS ADC growth (FY2026): “Full- year ADC growth for 2026 is updated to a range of 4.5%-5.5%, compared to the original guidance of 3.5%-4%.”
VITAS revenue growth (excluding Medicare cap) (FY2026): “Anticipated revenue growth, excluding the impact of the Medicare cap, improves from the original guidance of 5.5%-6.5% to a revised range of 6.5%-7.5%.”
VITAS EBITDA margin (excluding Medicare cap) (FY2026): “Finally, revised EBITDA margin, excluding the impact of the Medicare cap, is anticipated to be 18%-18.5%, compared to the original guidance of 17.5%-18.5%.”
Roto-Rooter revenue growth (FY2026): “When factoring all the gives and takes within the expected Roto-Rooter performance for the remainder of fiscal 2026, anticipated revenue growth remains unchanged at 3%-3.5%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.5B | 2.5B | 2.4B | 2.3B | 2.1B | 2.1B |
| Net Income | 260M | 265M | 302M | 273M | 250M | 269M |
| EPS | $18.44 | $18.34 | $19.89 | $17.93 | $16.53 | $16.85 |
| Free Cash Flow | 377M | 325M | 368M | 273M | 253M | 250M |
| ROIC | 26.5% | 25.4% | 27.4% | 27.8% | 29.8% | 31.8% |
| Gross Margin | - | 32.5% | 35.1% | 35.3% | 35.8% | 36.0% |
| Debt/Equity | 0.11 | 0.15 | 0.13 | 0.21 | 0.31 | 0.52 |
| Dividends/Share | $2.45 | $2.20 | $1.80 | $1.56 | $1.48 | $1.40 |
| Operating Income | 328M | 338M | 366M | 341M | 343M | 343M |
| Operating Margin | 12.9% | 13.4% | 15.1% | 15.0% | 16.1% | 16.0% |
| ROE | 30.6% | 25.3% | 27.1% | 28.6% | 35.1% | 35.2% |
| Shares Outstanding | 13M | 14M | 15M | 15M | 15M | 16M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.5B | 1.5B | 1.6B | 1.7B | 1.8B | 1.9B | 2.1B | 2.1B | 2.1B | 2.3B | 2.4B | 2.5B | 2.5B |
| Gross Margin | 29.0% | 29.5% | 29.3% | 31.0% | 31.1% | 31.8% | 33.7% | 36.0% | 35.8% | 35.3% | 35.1% | 32.5% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 223M | 238M | 244M | 277M | 271M | 306M | 330M | 367M | 359M | 395M | 424M | 417M | 426M |
| EBIT | 168M | 184M | 179M | 113M | 244M | 257M | 390M | 343M | 343M | 341M | 366M | 338M | 328M |
| Op. Margin | 11.6% | 12.0% | 11.3% | 6.8% | 13.7% | 13.3% | 18.7% | 16.0% | 16.1% | 15.0% | 15.1% | 13.4% | 12.9% |
| Net Income | 99M | 110M | 109M | 98M | 206M | 220M | 319M | 269M | 250M | 273M | 302M | 265M | 260M |
| Net Margin | 6.8% | 7.1% | 6.9% | 5.9% | 11.5% | 11.3% | 15.4% | 12.6% | 11.7% | 12.0% | 12.4% | 10.5% | 10.2% |
| Non-Recurring | 460K | -698K | 1.3M | -5.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 12.6% | 19.2% | 18.2% | 15.2% | 32.0% | 26.8% | 37.3% | 31.8% | 29.8% | 27.8% | 27.4% | 25.4% | 26.5% |
| ROE | 22.1% | 22.9% | 21.0% | 18.4% | 36.3% | 33.4% | 39.3% | 35.2% | 35.1% | 28.6% | 27.1% | 25.3% | 30.6% |
| ROA | 11.3% | 12.9% | 12.6% | 10.9% | 21.7% | 19.6% | 23.6% | 19.3% | 17.9% | 17.5% | 18.1% | 16.5% | 16.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 110M | 172M | 135M | 162M | 287M | 301M | 489M | 309M | 310M | 330M | 417M | 388M | 444M |
| Free Cash Flow | 67M | 127M | 96M | 98M | 234M | 248M | 430M | 250M | 253M | 273M | 368M | 325M | 377M |
| Owner Earnings | 49M | 110M | 80M | 113M | 221M | 228M | 407M | 234M | 235M | 229M | 302M | 285M | 374M |
| CapEx | 44M | 44M | 40M | 64M | 53M | 53M | 59M | 59M | 57M | 57M | 50M | 63M | 67M |
| Maint. CapEx | 31M | 33M | 35M | 36M | 39M | 45M | 57M | 59M | 59M | 61M | 63M | 65M | 66M |
| Growth CapEx | 13M | 11M | 5.1M | 29M | 14M | 7.8M | 2.2M | 0 | 0 | 0 | 0 | 0 | 934K |
| D&A | 31M | 33M | 35M | 36M | 39M | 45M | 57M | 59M | 59M | 61M | 63M | 65M | 66M |
| CapEx/OCF | 39.5% | 25.7% | 29.4% | 39.6% | 18.4% | 17.6% | 12.0% | 19.0% | 18.5% | 17.2% | 11.9% | 16.2% | 15.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 14M | 16M | 16M | 17M | 19M | 20M | 21M | 22M | 22M | 24M | 27M | 32M | 33M |
| Dividend Yield | 0.9% | 0.7% | 0.7% | 0.5% | 0.4% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.4% | 0.5% |
| Share Buybacks | 110M | 59M | 102M | 95M | 159M | 93M | 176M | 576M | 115M | 68M | 361M | 432M | 588M |
| Buyback Yield | 6.1% | 2.3% | 3.9% | 2.4% | 3.5% | 1.3% | 2.0% | 6.9% | 1.5% | 0.8% | 4.6% | 6.9% | 8.7% |
| Stock-Based Comp | 31M | 28M | 21M | 14M | 28M | 28M | 25M | 15M | 16M | 41M | 52M | 39M | 4.0M |
| Debt Repayment | 187M | 153M | 102M | 211M | 407M | 482M | 265M | 25M | 307M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 133M | 77M | 93M | 90M | 84M | 210M | -27M | 291M | 173M | -27M | -38M | 69M | 74M |
| Cash & Equiv. | 14M | 15M | 15M | 11M | 4.8M | 6.2M | 163M | 33M | 74M | 264M | 178M | 75M | 17M |
| Long-Term Debt | 141M | 84M | 100M | 91M | 89M | 90M | N/A | 185M | 93M | 98M | N/A | N/A | 91M |
| Debt/Equity | 0.33 | 0.18 | 0.21 | 0.19 | 0.15 | 0.30 | 0.15 | 0.52 | 0.31 | 0.21 | 0.13 | 0.15 | 0.11 |
| Interest Coverage | 20.6 | 50.6 | 48.1 | 26.5 | 48.8 | 56.8 | 165.5 | 183.6 | 74.9 | 109.6 | 205.9 | 193.3 | 169.7 |
| Equity | 451M | 513M | 524M | 540M | 591M | 727M | 901M | 623M | 799M | 1.1B | 1.1B | 979M | 848M |
| Total Assets | 860M | 852M | 880M | 920M | 976M | 1.3B | 1.4B | 1.3B | 1.4B | 1.7B | 1.7B | 1.5B | 1.5B |
| Total Liabilities | 409M | 339M | 356M | 380M | 384M | 542M | 534M | 719M | 643M | 560M | 550M | 559M | 688M |
| Intangibles | 56M | 55M | 55M | 55M | 68M | 126M | 118M | 108M | 100M | 90M | 92M | 83M | 80M |
| Retained Earnings | 771M | 866M | 958M | 1.0B | 1.2B | 1.4B | 1.7B | 2.0B | 2.2B | 2.4B | 2.7B | 3.0B | 3.0B |
| Working Capital | -990K | -21M | -1.9M | -17M | -32M | -72M | 30M | -72M | -25M | 189M | 109M | 15M | -47M |
| Current Assets | 175M | 151M | 170M | 176M | 160M | 191M | 329M | 230M | 273M | 501M | 395M | 303M | 274M |
| Current Liabilities | 176M | 171M | 172M | 194M | 192M | 262M | 299M | 302M | 297M | 312M | 286M | 287M | 321M |
| Per Share Data | |||||||||||||
| EPS | 5.57 | 6.33 | 6.48 | 5.86 | 12.23 | 13.31 | 19.48 | 16.85 | 16.53 | 17.93 | 19.89 | 18.34 | 18.44 |
| Owner EPS | 2.73 | 6.29 | 4.78 | 6.72 | 13.13 | 13.77 | 24.84 | 14.71 | 15.57 | 15.04 | 19.91 | 19.69 | 28.18 |
| Book Value | 25.31 | 29.46 | 31.23 | 32.25 | 35.18 | 43.98 | 54.95 | 39.11 | 52.89 | 72.89 | 73.70 | 67.72 | 63.88 |
| Cash Flow/Share | 6.18 | 9.84 | 8.07 | 9.70 | 17.08 | 18.23 | 29.84 | 19.36 | 20.52 | 21.73 | 27.50 | 26.85 | 24.52 |
| Dividends/Share | 0.84 | 0.92 | 1.00 | 1.08 | 1.16 | 1.24 | 1.32 | 1.40 | 1.48 | 1.56 | 1.80 | 2.20 | 2.45 |
| Shares Out. | 17.8M | 17.4M | 16.8M | 16.8M | 16.8M | 16.5M | 16.4M | 15.9M | 15.1M | 15.2M | 15.2M | 14.5M | 13.3M |
| Valuation | |||||||||||||
| P/E Ratio | 18.3 | 23.1 | 23.9 | 40.3 | 22.3 | 32.3 | 27.2 | 31.1 | 30.5 | 32.3 | 26.1 | 23.5 | 27.7 |
| P/FCF | 27.2 | 20.0 | 27.2 | 40.3 | 19.5 | 28.6 | 20.2 | 33.5 | 30.2 | 32.2 | 21.4 | 19.2 | 18.0 |
| EV/EBIT | 11.6 | 14.2 | 15.0 | 35.8 | 19.2 | 27.9 | 22.1 | 24.8 | 22.3 | 25.4 | N/A | N/A | 20.9 |
| Price/Book | 4.0 | 5.0 | 5.0 | 7.3 | 7.7 | 9.8 | 9.6 | 13.4 | 9.5 | 7.9 | 7.1 | 6.4 | 8.0 |
| Price/Sales | 1.1 | 1.4 | 1.4 | 1.9 | 2.8 | 3.1 | 3.6 | 3.5 | 3.4 | 3.5 | 3.6 | 2.9 | 2.7 |
| FCF Yield | 3.7% | 5.0% | 3.7% | 2.5% | 5.1% | 3.5% | 5.0% | 3.0% | 3.3% | 3.1% | 4.7% | 5.2% | 5.6% |
| Market Cap | 1.8B | 2.5B | 2.6B | 4.0B | 4.6B | 7.1B | 8.7B | 8.4B | 7.6B | 8.8B | 7.9B | 6.2B | 6.8B |
| Avg. Price | 89.42 | 124.74 | 133.44 | 192.83 | 291.86 | 359.07 | 459.05 | 472.73 | 477.78 | 528.06 | 573.46 | 504.19 | 511.13 |
| Year-End Price | 101.85 | 146.21 | 154.73 | 235.99 | 272.50 | 429.72 | 529.30 | 524.61 | 504.96 | 579.10 | 519.77 | 431.63 | 511.13 |
CHEMED CORP passes 5 of 9 quality checks, suggesting mixed fundamentals.
CHEMED CORP trades at 27.9x trailing earnings, compared to its 15-year median P/E of 28.9x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 21.6x vs a median of 27.9x. The company's 5-year average ROIC is 28.4% with a gross margin of 35.0%. Total shareholder yield (dividends + buybacks) is 9.2%. At current prices, the estimated annualized return to fair value is +3.5%.
CHEMED CORP (CHE) has a net profit margin of 10.5%. This is a healthy margin.
CHEMED CORP (CHE) generated $325 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CHEMED CORP (CHE) has a debt-to-equity ratio of 0.15. This indicates a conservatively financed balance sheet.
CHEMED CORP (CHE) reported earnings per share (EPS) of $18.34 in its most recent fiscal year.
CHEMED CORP (CHE) has a return on equity (ROE) of 25.3%. This indicates the company generates strong returns for shareholders.
CHEMED CORP (CHE) has a 5-year average gross margin of 35.0%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for CHEMED CORP (CHE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CHEMED CORP (CHE) has a book value per share of $67.72, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects VITAS to deliver stronger financial results in 2026 as the company rebalances its patient mix between short-stay and long-stay admissions, with admissions growth and improved revenue per day driving higher EBITDA margins. The Florida Medicare cap position is expected to remain manageable with no significant billing limitations anticipated for the 2026 fiscal year, supported by new market openings in Marion, Pasco, and Pinellas Counties that are exceeding admission expectations. Roto-Rooter faces near-term headwinds from elevated internet marketing costs and ongoing billing and collection challenges related to centralization efforts, though management expects these operational improvements to generate $4–6 million in tailwinds as the year progresses and centralized staff gain proficiency. The company anticipates continued lead volume improvement from search engine optimization initiatives and expanded commercial sales resources, with management confident in achieving guidance despite acknowledging a difficult operating environment that is expected to be temporary with no impairment to long-term growth outlook.
Based on recent SEC filings and earnings calls, CHEMED CORP (CHE) has provided the following forward guidance: VITAS ADC growth: 4.5%-5.5% (FY2026); VITAS revenue growth (excluding Medicare cap): 6.5%-7.5% (FY2026); VITAS EBITDA margin (excluding Medicare cap): 18%-18.5% (FY2026); Roto-Rooter revenue growth: 3%-3.5% (FY2026); Roto-Rooter adjusted EBITDA margin: 21.5%-22.5% (FY2026), plus 1 additional metric.
Roto-Rooter adjusted EBITDA margin (FY2026): “Estimated adjusted EBITDA margin is lowered slightly to 21.5%-22.5%, compared to the original guidance of 22.5%-23%.”
Adjusted earnings per diluted share (FY2026): “Based on the above, full- year 2026 earnings per diluted share, excluding non-cash expenses for stock options, tax benefits from stock option exercises, costs related to litigation, and other discrete items, is estimated to be in the range of $24-$24.75.”