NYSE:CHE

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Chemed's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

CHE

7.0%

US Healthcare

1.0%

US Market


1 Year Return

38.2%

CHE

-8.8%

US Healthcare

8.0%

US Market

Return vs Industry: CHE exceeded the US Healthcare industry which returned -8.8% over the past year.

Return vs Market: CHE exceeded the US Market which returned 8% over the past year.


Shareholder returns

CHEIndustryMarket
7 Day0.1%7.0%1.0%
30 Day-2.1%1.8%-0.07%
90 Day13.0%-2.7%-1.0%
1 Year38.6%38.2%-7.3%-8.8%10.4%8.0%
3 Year203.2%199.0%33.7%27.7%46.2%36.7%
5 Year315.6%304.0%59.4%48.8%64.3%46.2%

Price Volatility Vs. Market

How volatile is Chemed's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chemed undervalued compared to its fair value and its price relative to the market?

33.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHE ($417.53) is trading above our estimate of fair value ($412.86)

Significantly Below Fair Value: CHE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CHE is poor value based on its PE Ratio (33.2x) compared to the Healthcare industry average (21.1x).

PE vs Market: CHE is poor value based on its PE Ratio (33.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CHE is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: CHE is overvalued based on its PB Ratio (10.7x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

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

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHE's forecast earnings growth (11.5% per year) is above the savings rate (2.7%).

Earnings vs Market: CHE's earnings (11.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CHE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHE's revenue (10.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CHE's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CHE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Chemed performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHE's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: CHE's earnings growth over the past year (5.8%) is below its 5-year average (16.8% per year).

Earnings vs Industry: CHE earnings growth over the past year (5.8%) exceeded the Healthcare industry 5.6%.


Return on Equity

High ROE: CHE's Return on Equity (32.5%) is considered high.


Return on Assets

ROA vs Industry: CHE has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: CHE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Chemed's financial position?


Financial Position Analysis

Short Term Liabilities: CHE's short term assets ($180.2M) do not cover its short term liabilities ($223.7M)

Long Term Liabilities: CHE's short term assets (180.2M) do not cover its long term liabilities (251.8M)


Debt to Equity History and Analysis

Debt Level: CHE's debt to equity ratio (13.7%) is considered satisfactory

Reducing Debt: CHE's debt to equity ratio has reduced from 36% to 13.7% over the past 5 years.

Debt Coverage: CHE's debt is well covered by operating cash flow (323.5%).

Interest Coverage: CHE's interest payments on its debt are well covered by EBIT (61.3x coverage).


Balance Sheet

Inventory Level: CHE has a high level of physical assets or inventory.

Debt Coverage by Assets: CHE's debt is covered by short term assets (assets are 2.119740x debt).


Next Steps

Dividend

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

0.31%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CHE's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CHE's dividend (0.31%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: CHE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CHE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CHE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

Kevin McNamara (65yo)

18.4yrs

Tenure

US$8,778,637

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Kevin's total compensation ($USD8.78M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

13.0yrs

Average Tenure

63yo

Average Age

Experienced Management: CHE's management team is seasoned and experienced (13 years average tenure).


Board Age and Tenure

19.4yrs

Average Tenure

74yo

Average Age

Experienced Board: CHE's board of directors are seasoned and experienced ( 19.4 years average tenure).


Insider Trading

Insider Buying: CHE insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$3,437,03615 Oct 19
Frank Wood
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,223
Max PriceUS$419.62
SellUS$1,252,49323 Aug 19
Walter Krebs
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,910
Max PriceUS$430.41
SellUS$2,163,65023 Aug 19
Kevin McNamara
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceUS$432.73
SellUS$1,880,94519 Aug 19
Michael Witzeman
EntityIndividual
Role
Chief Accounting Officer
VP & Controller
Shares4,349
Max PriceUS$435.00
SellUS$173,14714 Aug 19
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares400
Max PriceUS$432.99
SellUS$3,015,60012 Aug 19
David Williams
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,000
Max PriceUS$430.80
SellUS$853,50008 Aug 19
Spencer Lee
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares2,000
Max PriceUS$426.75
SellUS$5,001,60008 Aug 19
Kevin McNamara
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares12,000
Max PriceUS$416.80
BuyUS$206,43007 Aug 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares500
Max PriceUS$412.86
SellUS$106,76607 Aug 19
Patrick Grace
EntityIndividual
Role
Member of the Board of Directors
Director
Shares257
Max PriceUS$415.43
SellUS$211,13206 May 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares646
Max PriceUS$326.83
SellUS$183,35422 Mar 19
Kevin McNamara
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares565
Max PriceUS$324.52
SellUS$131,42422 Mar 19
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares400
Max PriceUS$328.56
BuyUS$13,33515 Mar 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares51
Max PriceUS$322.87
SellUS$241,08013 Mar 19
Michael Witzeman
EntityIndividual
Role
Chief Accounting Officer
VP & Controller
Shares735
Max PriceUS$328.00
SellUS$655,33827 Feb 19
Thomas Rice
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$328.26
SellUS$310,01427 Feb 19
Naomi Dallob
EntityIndividual
Role
Chief Legal Officer
VP, Chief Legal Officer & Secretary
Shares950
Max PriceUS$326.33
SellUS$36,59625 Feb 19
Spencer Lee
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares112
Max PriceUS$326.75
SellUS$132,13625 Feb 19
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares400
Max PriceUS$330.34
SellUS$328,07025 Feb 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares1,000
Max PriceUS$328.07
SellUS$210,57430 Nov 18
Spencer Lee
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares669
Max PriceUS$314.76
SellUS$3,023,00021 Nov 18
David Williams
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$302.30
SellUS$204,52416 Nov 18
Spencer Lee
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares657
Max PriceUS$311.30
SellUS$92,62209 Nov 18
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares300
Max PriceUS$308.74
SellUS$1,456,40307 Nov 18
Naomi Dallob
EntityIndividual
Role
Chief Legal Officer
VP, Chief Legal Officer & Secretary
Shares4,591
Max PriceUS$317.23
SellUS$454,38005 Nov 18
Kevin McNamara
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,485
Max PriceUS$305.98

Ownership Breakdown


Management Team

  • Kevin McNamara (65yo)

    CEO, President & Director

    • Tenure: 18.4yrs
    • Compensation: US$8.78m
  • Tim O'Toole (63yo)

    Consultant

    • Tenure: 3.3yrs
    • Compensation: US$600.63k
  • Spencer Lee (63yo)

    Executive Vice President

    • Tenure: 19.4yrs
    • Compensation: US$2.68m
  • Thomas Hutton (68yo)

    VP & Director

    • Tenure: 34.8yrs
    • Compensation: US$15.11k
  • Naomi Dallob (65yo)

    VP, Chief Legal Officer & Secretary

    • Tenure: 10.4yrs
    • Compensation: US$1.97m
  • David Williams (58yo)

    Executive VP & CFO

    • Tenure: 15.6yrs
    • Compensation: US$4.19m
  • Lisa Reinhard

    VP, Chief Administrative Officer & Assistant Secretary

    • Tenure: 0yrs
  • Michael Witzeman (48yo)

    VP & Controller

    • Tenure: 2.5yrs
  • Nick Westfall (40yo)

    Executive Vice President

    • Tenure: 3.3yrs
    • Compensation: US$3.07m
  • Sherri Warner

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tom Rice (69yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: US$180.61k
  • Kevin McNamara (65yo)

    CEO, President & Director

    • Tenure: 18.4yrs
    • Compensation: US$8.78m
  • Joel Gemunder (79yo)

    Director

    • Tenure: 42.8yrs
    • Compensation: US$172.11k
  • Patrick Grace (63yo)

    Director

    • Tenure: 23.8yrs
    • Compensation: US$206.61k
  • Thomas Hutton (68yo)

    VP & Director

    • Tenure: 34.8yrs
    • Compensation: US$15.11k
  • Walter Krebs (86yo)

    Director

    • Tenure: 14.4yrs
    • Compensation: US$173.11k
  • Donald Saunders (75yo)

    Director

    • Tenure: 21.4yrs
    • Compensation: US$182.61k
  • George Walsh (73yo)

    Non Executive Chairman

    • Tenure: 10.6yrs
    • Compensation: US$336.11k
  • Andrea Lindell (75yo)

    Director

    • Tenure: 11.4yrs
    • Compensation: US$173.11k
  • Frank Wood (76yo)

    Director

    • Tenure: 17.4yrs
    • Compensation: US$173.11k

Company Information

Chemed Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chemed Corporation
  • Ticker: CHE
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$6.648b
  • Shares outstanding: 15.92m
  • Website: https://www.chemed.com

Number of Employees


Location

  • Chemed Corporation
  • 255 East Fifth Street
  • Suite 2600
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHENYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1971
CXMDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1971

Biography

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 Stat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.