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Chemed

NYSE:CHE
Snowflake Description

Outstanding track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHE
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

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 in the United States. The last earnings update was 55 days ago. More info.


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CHE Share Price and Events
7 Day Returns
0.6%
NYSE:CHE
-2.8%
US Healthcare
-0.1%
US Market
1 Year Returns
7.3%
NYSE:CHE
-4.7%
US Healthcare
7.6%
US Market
CHE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Chemed (CHE) 0.6% 1.5% 12.3% 7.3% 134.5% 279.7%
US Healthcare -2.8% -7.3% -11.4% -4.7% 11.3% 60.7%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • CHE outperformed the Healthcare industry which returned -4.7% over the past year.
Price Volatility
CHE
Industry
5yr Volatility vs Market

CHE Value

 Is Chemed undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Chemed to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Chemed.

NYSE:CHE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CHE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (1.72%))
0.814
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.814 * 5.96%)
7.58%

Discounted Cash Flow Calculation for NYSE:CHE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Chemed is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CHE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.58%)
2019 315.94 Est @ 36.48% 293.68
2020 399.22 Est @ 26.36% 344.95
2021 476.15 Est @ 19.27% 382.44
2022 544.27 Est @ 14.31% 406.36
2023 603.24 Est @ 10.83% 418.66
2024 653.93 Est @ 8.4% 421.86
2025 697.76 Est @ 6.7% 418.42
2026 736.20 Est @ 5.51% 410.38
2027 770.63 Est @ 4.68% 399.30
2028 802.16 Est @ 4.09% 386.36
Present value of next 10 years cash flows $3,882.41
NYSE:CHE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $802.16 × (1 + 2.73%) ÷ (7.58% – 2.73%)
$16,995.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,995.03 ÷ (1 + 7.58%)10
$8,185.66
NYSE:CHE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,882.41 + $8,185.66
$12,068.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,068.08 / 15.93
$757.37
NYSE:CHE Discount to Share Price
Calculation Result
Value per share (USD) From above. $757.37
Current discount Discount to share price of $325.82
= -1 x ($325.82 - $757.37) / $757.37
57%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Chemed is available for.
Intrinsic value
>50%
Share price is $325.82 vs Future cash flow value of $757.37
Current Discount Checks
For Chemed to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Chemed's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Chemed's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Chemed's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Chemed's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CHE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $12.80
NYSE:CHE Share Price ** NYSE (2019-04-23) in USD $325.82
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 20.85x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Chemed.

NYSE:CHE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CHE Share Price ÷ EPS (both in USD)

= 325.82 ÷ 12.80

25.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chemed is overvalued based on earnings compared to the US Healthcare industry average.
  • Chemed is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Chemed's expected growth come at a high price?
Raw Data
NYSE:CHE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
1%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.49x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:CHE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.46x ÷ 1%

25.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chemed is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Chemed's assets?
Raw Data
NYSE:CHE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $37.25
NYSE:CHE Share Price * NYSE (2019-04-23) in USD $325.82
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:CHE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CHE Share Price ÷ Book Value per Share (both in USD)

= 325.82 ÷ 37.25

8.75x

* Primary Listing of Chemed.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chemed is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Chemed's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Chemed has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CHE Future Performance

 How is Chemed expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Chemed expected to grow at an attractive rate?
  • Chemed's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Chemed's earnings growth is positive but not above the United States of America market average.
  • Chemed's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CHE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CHE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 1%
NYSE:CHE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 5.8%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CHE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CHE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 2,002 270 210 4
2019-12-31 1,901 255 199 4
NYSE:CHE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,783 287 206
2018-09-30 1,753 202 206
2018-06-30 1,727 183 190
2018-03-31 1,700 159 113
2017-12-31 1,667 162 98
2017-09-30 1,642 198 76
2017-06-30 1,617 162 67
2017-03-31 1,592 197 114
2016-12-31 1,577 135 109
2016-09-30 1,572 187 106
2016-06-30 1,566 175 108
2016-03-31 1,557 166 111

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Chemed's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
  • Chemed's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CHE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Chemed Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CHE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 12.86 13.11 12.61 2.00
2019-12-31 12.06 12.14 11.97 2.00
NYSE:CHE Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 12.80
2018-09-30 12.81
2018-06-30 11.85
2018-03-31 7.07
2017-12-31 6.11
2017-09-30 4.71
2017-06-30 4.16
2017-03-31 7.00
2016-12-31 6.64
2016-09-30 6.44
2016-06-30 6.49
2016-03-31 6.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Chemed will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Chemed's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Chemed has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CHE Past Performance

  How has Chemed performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Chemed's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Chemed's year on year earnings growth rate has been positive over the past 5 years.
  • Chemed's 1-year earnings growth exceeds its 5-year average (109.4% vs 14.5%)
  • Chemed's earnings growth has exceeded the US Healthcare industry average in the past year (109.4% vs 7.3%).
Earnings and Revenue History
Chemed's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Chemed Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CHE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,782.65 205.54 270.21
2018-09-30 1,753.50 205.77 276.08
2018-06-30 1,726.79 189.96 274.89
2018-03-31 1,700.04 113.33 271.00
2017-12-31 1,666.72 98.18 271.46
2017-09-30 1,641.84 75.81 261.22
2017-06-30 1,617.01 67.21 254.01
2017-03-31 1,592.36 113.75 248.73
2016-12-31 1,576.88 108.74 238.31
2016-09-30 1,571.99 106.48 240.36
2016-06-30 1,565.61 108.49 233.54
2016-03-31 1,557.13 110.58 232.86
2015-12-31 1,543.39 110.27 232.85
2015-09-30 1,524.21 110.14 228.60
2015-06-30 1,496.37 105.89 228.61
2015-03-31 1,474.63 103.28 223.81
2014-12-31 1,456.28 99.32 220.45
2014-09-30 1,425.48 92.43 215.55
2014-06-30 1,407.97 85.28 211.02
2014-03-31 1,404.99 75.52 210.48
2013-12-31 1,413.33 77.23 213.42
2013-09-30 1,433.30 81.06 208.86
2013-06-30 1,446.77 84.47 214.65
2013-03-31 1,443.74 91.14 211.05
2012-12-31 1,430.04 89.30 207.44
2012-09-30 1,411.72 88.27 204.46
2012-06-30 1,398.81 89.31 198.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Chemed has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Chemed used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Chemed has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Chemed's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Chemed has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CHE Health

 How is Chemed's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Chemed's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Chemed's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Chemed's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Chemed's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Chemed Company Filings, last reported 3 months ago.

NYSE:CHE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 591.33 89.20 4.83
2018-09-30 568.15 130.00 67.46
2018-06-30 556.39 103.40 12.67
2018-03-31 506.96 142.50 13.69
2017-12-31 540.35 101.20 11.12
2017-09-30 477.70 82.50 18.87
2017-06-30 453.08 125.00 13.75
2017-03-31 500.64 146.88 47.05
2016-12-31 524.10 108.75 15.31
2016-09-30 487.20 110.63 21.29
2016-06-30 461.58 147.50 17.47
2016-03-31 484.82 144.88 15.24
2015-12-31 513.25 91.25 14.73
2015-09-30 488.58 138.13 38.45
2015-06-30 477.80 160.00 32.71
2015-03-31 476.54 161.25 28.34
2014-12-31 451.36 147.50 14.13
2014-09-30 432.43 173.55 18.56
2014-06-30 444.48 160.00 27.91
2014-03-31 445.93 185.83 39.48
2013-12-31 448.89 183.56 84.42
2013-09-30 426.83 181.34 83.20
2013-06-30 481.29 179.15 113.05
2013-03-31 483.09 186.10 72.96
2012-12-31 453.29 174.89 69.53
2012-09-30 474.63 179.81 69.30
2012-06-30 447.45 182.07 59.97
  • Chemed's level of debt (15.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (40.9% vs 15.1% today).
  • Debt is well covered by operating cash flow (321.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 56.7x coverage).
X
Financial health checks
We assess Chemed's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Chemed has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CHE Dividends

 What is Chemed's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.37%
Current annual income from Chemed dividends. Estimated to be 0.39% next year.
If you bought $2,000 of Chemed shares you are expected to receive $7 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Chemed's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Chemed's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CHE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CHE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.32 2.00
2019-12-31 1.24 2.00
NYSE:CHE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-22 1.200 0.370
2018-11-02 1.200 0.405
2018-08-03 1.200 0.384
2018-05-21 1.120 0.346
2018-02-16 1.120 0.390
2017-11-03 1.120 0.453
2017-08-04 1.120 0.561
2017-05-15 1.040 0.511
2017-02-17 1.040 0.555
2016-11-04 1.040 0.659
2016-08-05 1.040 0.752
2016-05-16 0.960 0.707
2016-02-19 0.960 0.723
2015-11-06 0.960 0.661
2015-08-07 0.960 0.684
2015-05-18 0.880 0.664
2015-02-20 0.880 0.739
2014-11-07 0.880 0.823
2014-08-08 0.880 0.854
2014-07-30 0.800 0.793
2014-02-21 0.800 0.894
2013-11-08 0.800 1.037
2013-08-02 0.800 1.142
2013-05-20 0.720 1.001
2013-02-20 0.720 0.947
2012-11-09 0.720 1.021
2012-08-03 0.720 1.062
2012-05-21 0.640 1.072
2012-02-17 0.640 1.047
2011-11-07 0.640 1.186
2011-08-08 0.640 1.158
2011-05-16 0.560 0.869
2011-02-18 0.560 0.836
2010-11-12 0.560 0.893
2010-08-06 0.560 1.013
2010-05-17 0.480 0.871
2010-02-18 0.480 0.872
2009-11-10 0.480 1.015
2009-08-07 0.480 1.076
2009-05-29 0.240 0.599
2009-04-24 0.240 0.596

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chemed is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Chemed is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Chemed's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Chemed's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Chemed's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Chemed's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Chemed afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Chemed has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CHE Management

 What is the CEO of Chemed's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin McNamara
COMPENSATION $7,934,517
AGE 64
TENURE AS CEO 17.9 years
CEO Bio

Mr. Kevin J. McNamara has been the Chief Executive Officer of Chemed Corp. since May 2001 and has been its President since August 2, 1994. Previously, Mr. McNamara served as an Executive Vice President and Secretary of Chemed Corp. from November 1993 to August 1986 and from August 1986 to August 1994, respectively. He served as General Counsel of Chemed Corp. from August 1986 to August 1994, its Vice President from August 1986 to May 1992 and as its Assistant Secretary since August 1986. Mr. McNamara began his career at Chemed in 1980 as a Corporate Attorney. In 1981, he served at Omnicare as its Secretary. From 1990 to 1992, he also served as Executive Vice President and Chief Operating Officer of Omnicare. He serves as Chairman of Vitas Hospice Services L.L.C. He has been Chairman of Vitas Healthcare Corporation since February, 2004. He has been Vice Chairman of Roto-Rooter Inc., since August 1994. He served as Vice Chairman of Chemed Corporation from May 1992 to November 1993. He served as Vice Chairman of National Sanitary Supply Company since August 1994 and its Director since 1988. He has been a Director of Chemed Corp. since 1987. He serves as a Director of Roto-Rooter, Inc. He serves as a Director of Omnicare and Vitas Hospice Services L.L.C. Mr. McNamara holds an A.B. degree in Economics from Denison University and a J.D. from Cornell University Law School.

CEO Compensation
  • Kevin's compensation has increased by more than 20% in the past year.
  • Kevin's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Chemed management team in years:

12.5
Average Tenure
62
Average Age
  • The average tenure for the Chemed management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Kevin McNamara

TITLE
CEO, President & Director
COMPENSATION
$8M
AGE
64
TENURE
17.9 yrs

David Williams

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
57
TENURE
15.1 yrs

Naomi Dallob

TITLE
VP, Chief Legal Officer & Secretary
COMPENSATION
$2M
AGE
64
TENURE
9.9 yrs

Spencer Lee

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
62
TENURE
18.9 yrs

Nick Westfall

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
39
TENURE
2.8 yrs

Michael Witzeman

TITLE
VP & Controller
AGE
47
TENURE
2 yrs

Lisa Reinhard

TITLE
VP, Chief Administrative Officer & Assistant Secretary

Sherri Warner

TITLE
Director of Investor Relations

Thomas Hutton

TITLE
VP & Director
COMPENSATION
$15K
AGE
67
TENURE
31.2 yrs

Tim O'Toole

TITLE
Consultant
COMPENSATION
$601K
AGE
62
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Chemed board of directors in years:

18.9
Average Tenure
73
Average Age
  • The average tenure for the Chemed board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

George Walsh

TITLE
Non Executive Chairman
COMPENSATION
$332K
AGE
72
TENURE
10.1 yrs

Kevin McNamara

TITLE
CEO, President & Director
COMPENSATION
$8M
AGE
64
TENURE
32.3 yrs

Thomas Hutton

TITLE
VP & Director
COMPENSATION
$15K
AGE
67
TENURE
34.3 yrs

Patrick Grace

TITLE
Director
COMPENSATION
$199K
AGE
62
TENURE
23.3 yrs

Joel Gemunder

TITLE
Director
COMPENSATION
$171K
AGE
78
TENURE
42.3 yrs

Walter Krebs

TITLE
Director
COMPENSATION
$173K
AGE
85
TENURE
13.9 yrs

Donald Saunders

TITLE
Director
COMPENSATION
$186K
AGE
74
TENURE
20.9 yrs

Frank Wood

TITLE
Director
COMPENSATION
$173K
AGE
75
TENURE
16.9 yrs

Andrea Lindell

TITLE
Director
COMPENSATION
$173K
AGE
74
TENURE
10.9 yrs

Tom Rice

TITLE
Director
COMPENSATION
$179K
AGE
68
TENURE
9.9 yrs
Who owns this company?
Recent Insider Trading
  • Chemed insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Mar 19 Sell Kevin McNamara Individual 22. Mar 19 22. Mar 19 -565 $324.52 $-183,354
22. Mar 19 Sell Donald Saunders Individual 21. Mar 19 21. Mar 19 -400 $328.56 $-131,424
15. Mar 19 Buy George Walsh Individual 06. Dec 17 05. Sep 18 2 $320.30 $569
15. Mar 19 Buy George Walsh Individual 15. Jun 17 05. Dec 18 51 $322.87 $13,335
13. Mar 19 Sell Michael Witzeman Individual 12. Mar 19 12. Mar 19 -735 $328.00 $-241,080
27. Feb 19 Sell Thomas Rice Individual 27. Feb 19 27. Feb 19 -2,000 $328.26 $-655,338
27. Feb 19 Sell Naomi Dallob Individual 27. Feb 19 27. Feb 19 -950 $326.33 $-310,014
25. Feb 19 Sell Spencer Lee Individual 25. Feb 19 25. Feb 19 -112 $326.75 $-36,596
25. Feb 19 Sell Donald Saunders Individual 25. Feb 19 25. Feb 19 -400 $330.34 $-132,136
25. Feb 19 Sell George Walsh Individual 25. Feb 19 25. Feb 19 -1,000 $328.07 $-328,070
30. Nov 18 Sell Spencer Lee Individual 30. Nov 18 30. Nov 18 -669 $314.76 $-210,574
21. Nov 18 Sell David Williams Individual 20. Nov 18 20. Nov 18 -10,000 $302.30 $-3,023,000
16. Nov 18 Sell Spencer Lee Individual 16. Nov 18 16. Nov 18 -657 $311.30 $-204,524
09. Nov 18 Sell Donald Saunders Individual 05. Nov 18 05. Nov 18 -300 $308.74 $-92,622
07. Nov 18 Sell Naomi Dallob Individual 07. Nov 18 07. Nov 18 -4,591 $317.23 $-1,456,403
05. Nov 18 Sell Kevin McNamara Individual 02. Nov 18 02. Nov 18 -1,485 $305.98 $-454,380
24. Aug 18 Sell Michael Witzeman Individual 24. Aug 18 24. Aug 18 -1,706 $322.00 $-549,332
23. Aug 18 Sell Donald Saunders Individual 20. Aug 18 20. Aug 18 -300 $319.25 $-95,766
22. Jun 18 Sell Patrick Grace Individual 22. Jun 18 22. Jun 18 -250 $323.76 $-80,940
20. Jun 18 Sell Kevin McNamara Individual 19. Jun 18 19. Jun 18 -19,000 $322.51 $-6,123,090
24. May 18 Sell Naomi Dallob Individual 23. May 18 23. May 18 -200 $327.13 $-65,426
17. May 18 Sell Spencer Lee Individual 16. May 18 16. May 18 -1,440 $332.22 $-478,397
11. May 18 Sell David Williams Individual 11. May 18 11. May 18 -10,000 $326.17 $-3,261,700
07. May 18 Sell David Williams Individual 07. May 18 07. May 18 -5,438 $316.08 $-1,718,843
04. May 18 Sell Michael Witzeman Individual 02. May 18 02. May 18 -1,000 $313.00 $-313,000
27. Apr 18 Sell Donald Saunders Individual 26. Apr 18 26. Apr 18 -400 $306.50 $-122,591
27. Apr 18 Buy Donald Saunders Individual 26. Apr 18 26. Apr 18 48 $306.81 $14,727
25. Apr 18 Sell Kevin McNamara Individual 24. Apr 18 24. Apr 18 -7,189 $299.36 $-2,152,099
25. Apr 18 Sell David Williams Individual 25. Apr 18 25. Apr 18 -2,157 $303.18 $-653,959
25. Apr 18 Sell Spencer Lee Individual 25. Apr 18 25. Apr 18 -1,428 $299.90 $-428,257
X
Management checks
We assess Chemed's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Chemed has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CHE News

Simply Wall St News

What Did Chemed Corporation's (NYSE:CHE) CEO Take Home Last Year?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Kevin McNamara's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Chemed Corporation has a market cap of US$5.0b, and is paying total annual CEO compensation of US$7.9m.

Simply Wall St -

Should You Be Worried About Insider Transactions At Chemed Corporation (NYSE:CHE)?

So shareholders might well want to know whether insiders have been buying or selling shares in Chemed Corporation (NYSE:CHE). … In the last twelve months, the biggest single sale by an insider was when CEO, President & Director Kevin McNamara sold US$6.1m worth of shares at a price of US$323 per share. … Over the last year we saw more insider selling of Chemed shares, than buying

Simply Wall St -

Why We Like Chemed Corporation’s (NYSE:CHE) 31% Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Investors Who Bought Chemed Shares Five Years Ago Are Now Up 283%

One great example is Chemed Corporation (NYSE:CHE) which saw its share price drive 283% higher over five years. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Chemed managed to grow its earnings per share at 25% a year.

Simply Wall St -

Can Chemed Corporation's (NYSE:CHE) ROE Continue To Surpass The Industry Average?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.36 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

All You Need To Know About Chemed Corporation's (NYSE:CHE) Financial Health

CHE’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Don’t forget that this is a general and concentrated examination of Chemed's financial health, so you should conduct further analysis. … See our latest analysis for Chemed

Simply Wall St -

How Much Are Chemed Corporation (NYSE:CHE) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Chemed Corporation (NYSE:CHE). … It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. … The Last 12 Months Of Insider Transactions At Chemed.

Simply Wall St -

Should You Be Tempted To Sell Chemed Corporation (NYSE:CHE) Because Of Its P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does Chemed Corporation's (NYSE:CHE) CEO Pay Matter?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Kevin McNamara's Compensation Compare With Similar Sized Companies. … According to our data, Chemed Corporation has a market capitalization of US$4.8b, and pays its CEO total annual compensation worth US$7.9m.

Simply Wall St -

Can Chemed Corporation (NYSE:CHE) Save Your Portfolio?

Today I want to bring to light the market's darling - Chemed Corporation. … Looking at its size, financial health and track record, I believe there's an opportunity with Chemed during these volatile times. … Chemed Corporation provides hospice and palliative care services in the United States

Simply Wall St -

CHE Company Info

Description

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 in the United States. It operates through two segments, VITAS and Roto-Rooter. The company also offers plumbing, drain cleaning, water restoration, and other related services to residential and commercial customers through company-owned and independent contractors, and franchised locations. Chemed Corporation was founded in 1970 and is headquartered in Cincinnati, Ohio.

Details
Name: Chemed Corporation
CHE
Exchange: NYSE
Founded: 1970
$5,191,662,798
15,934,144
Website: http://www.chemed.com
Address: Chemed Corporation
255 East Fifth Street,
Suite 2600,
Cincinnati,
Ohio, 45202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CHE Common Stock New York Stock Exchange US USD 10. Nov 1971
DB CXM Common Stock Deutsche Boerse AG DE EUR 10. Nov 1971
Number of employees
Current staff
Staff numbers
15,707
Chemed employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:56
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/03/27
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.