A Business at a Glance
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Chemed Corporation (the “Company” or “Chemed”) was incorporated in Delaware in 1970 as a subsidiary of W.R. Grace & Co. and succeeded to the business of W.R. Grace & Co.’s Special Products Group as of April 30, 1971 and remained a subsidiary of W.R. Grace & Co. until March 10, 1982. Chemed purchases, operates and divests subsidiaries engaged in diverse business activities for the purposes of maximizing shareholder value. The Company’s day to day operating businesses are managed on a decentralized basis. There are few integrated business functions between the operating units and Chemed (such as sales, marketing or purchasing). Chemed’s corporate office management participates in and is ultimately responsible for long term strategic planning, significant capital allocation decisions, investment activities, financial reporting, tax, legal and the selection of the key executives of each of the operating businesses.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.5B | 2.5B | 2.4B | 2.3B | 2.1B | 2.1B |
| Net Income | 265M | 265M | 302M | 273M | 250M | 269M |
| EPS | $18.34 | $18.34 | $19.89 | $17.93 | $16.53 | $16.85 |
| Free Cash Flow | 325M | 325M | 368M | 273M | 253M | 250M |
| ROIC | 24.0% | 25.4% | 27.4% | 27.8% | 29.8% | 30.2% |
| Gross Margin | 32.5% | 32.5% | 35.1% | 35.3% | 35.8% | 36.0% |
| Debt/Equity | 0.15 | 0.15 | 0.13 | 0.22 | 0.31 | 0.52 |
| Dividends/Share | $2.19 | $2.20 | $1.80 | $1.56 | $1.48 | $1.40 |
| Operating Income | 338M | 338M | 366M | 341M | 343M | 343M |
| Operating Margin | 13.4% | 13.4% | 15.1% | 15.0% | 16.1% | 16.0% |
| ROE | 27.1% | 25.3% | 27.1% | 28.6% | 35.1% | 35.2% |
| Shares Outstanding | 14M | 14M | 15M | 15M | 15M | 16M |
CHEMED CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
CHEMED CORP trades at 21.1x trailing earnings, compared to its 15-year median P/E of 28.9x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 16.4x vs a median of 27.9x. The company's 5-year average ROIC is 28.1% with a gross margin of 35.0%. Total shareholder yield (dividends + buybacks) is 8.3%. At current prices, the estimated annualized return to fair value is +5.1%.
CHEMED CORP (CHE) has a current P/E ratio of 21.1, compared to its historical median P/E of 28.9. The stock is currently considered Cheap based on its historical valuation range.
CHEMED CORP (CHE) has a 5-year average return on invested capital (ROIC) of 28.1%. This indicates strong capital allocation and a potential competitive advantage.
CHEMED CORP (CHE) has a market capitalization of $5.6B. It is classified as a mid-cap stock.
Yes, CHEMED CORP (CHE) pays a dividend with a trailing twelve-month yield of 0.57%. The company also returns capital through share buybacks, with a buyback yield of 7.70%.
Based on historical P/E analysis, CHEMED CORP (CHE) appears cheap. The current P/E of 21.1 is 27% below its historical median of 28.9. The estimated fair value CAGR (P/E method) is 6.1%.
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 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.