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Market Cap

US$7.7b

Last Updated

2021/04/18 23:37 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: CHE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CHE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.1%

CHE

2.7%

US Healthcare

1.3%

US Market


1 Year Return

6.4%

CHE

47.1%

US Healthcare

53.8%

US Market

Return vs Industry: CHE underperformed the US Healthcare industry which returned 47.1% over the past year.

Return vs Market: CHE underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

CHEIndustryMarket
7 Day3.1%2.7%1.3%
30 Day6.1%3.4%5.1%
90 Day-9.3%7.4%8.9%
1 Year6.7%6.4%48.6%47.1%56.6%53.8%
3 Year59.9%58.4%12.6%10.2%64.4%53.6%
5 Year253.7%246.1%19.2%15.2%120.4%95.7%

Long-Term 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?

48.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHE ($479.76) is trading below our estimate of fair value ($930.62)

Significantly Below Fair Value: CHE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHE is good value based on its PE Ratio (24x) compared to the US Healthcare industry average (24.1x).

PE vs Market: CHE is poor value based on its PE Ratio (24x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: CHE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CHE is overvalued based on its PB Ratio (8.5x) compared to the US Healthcare industry average (3.6x).


Future Growth

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

-5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHE's earnings are forecast to decline over the next 3 years (-5.7% per year).

Earnings vs Market: CHE's earnings are forecast to decline over the next 3 years (-5.7% per year).

High Growth Earnings: CHE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CHE's revenue (2.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CHE's revenue (2.6% 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


Past Performance

How has Chemed performed over the past 5 years?

24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHE has a large one-off gain of $75.1M impacting its December 31 2020 financial results.

Growing Profit Margin: CHE's current net profit margins (15.4%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: CHE's earnings have grown significantly by 24.7% per year over the past 5 years.

Accelerating Growth: CHE's earnings growth over the past year (45.2%) exceeds its 5-year average (24.7% per year).

Earnings vs Industry: CHE earnings growth over the past year (45.2%) exceeded the Healthcare industry 23.6%.


Return on Equity

High ROE: CHE's Return on Equity (35.4%) is considered high.


Financial Health

How is Chemed's financial position?


Financial Position Analysis

Short Term Liabilities: CHE's short term assets ($329.4M) exceed its short term liabilities ($299.1M).

Long Term Liabilities: CHE's short term assets ($329.4M) exceed its long term liabilities ($234.6M).


Debt to Equity History and Analysis

Debt Level: CHE is debt free.

Reducing Debt: CHE has no debt compared to 5 years ago when its debt to equity ratio was 18%.

Debt Coverage: CHE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CHE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHE's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: CHE's dividend (0.28%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

17.1yrs

Average management tenure


CEO

Kevin McNamara (66 yo)

19.92yrs

Tenure

US$10,019,850

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 ($USD10.02M) is above average for companies of similar size in the US market ($USD6.50M).

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


Leadership Team

Experienced Management: CHE's management team is seasoned and experienced (17.1 years average tenure).


Board Members

Experienced Board: CHE's board of directors are seasoned and experienced ( 12.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$7.655b
  • Shares outstanding: 16.03m
  • Website: https://www.chemed.com

Number of Employees


Location

  • Chemed Corporation
  • 255 East Fifth Street
  • Suite 2600
  • Cincinnati
  • Ohio
  • 45202-4726
  • United States

Listings


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 Analysis2021/04/18 23:37
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.