NYSE:CHE

Stock Analysis Report

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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 Analysis

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

Stable Share Price: CHE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

CHE

1.8%

US Healthcare

1.5%

US Market


1 Year Return

27.1%

CHE

9.2%

US Healthcare

6.9%

US Market

Return vs Industry: CHE exceeded the US Healthcare industry which returned 9.2% over the past year.

Return vs Market: CHE exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

CHEIndustryMarket
7 Day-0.2%1.8%1.5%
30 Day7.0%4.0%5.9%
90 Day5.5%8.2%17.9%
1 Year27.5%27.1%10.6%9.2%9.2%6.9%
3 Year137.8%135.1%30.5%24.6%36.4%27.5%
5 Year261.2%252.4%40.2%30.6%64.9%47.0%

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?

32.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHE ($475.05) is trading above our estimate of fair value ($410.79)

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 (32.8x) compared to the US Healthcare industry average (23.9x).

PE vs Market: CHE is poor value based on its PE Ratio (32.8x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: CHE is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: CHE is overvalued based on its PB Ratio (11x) compared to the US Healthcare industry average (2.7x).


Next Steps

Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHE's forecast earnings growth (9.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CHE's earnings (9.7% per year) are forecast to grow slower than the US market (22.4% per year).

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

Revenue vs Market: CHE's revenue (7.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CHE's revenue (7.4% 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?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHE has high quality earnings.

Growing Profit Margin: CHE's current net profit margins (11.6%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: CHE's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: CHE's earnings growth over the past year (12.7%) is below its 5-year average (19.8% per year).

Earnings vs Industry: CHE earnings growth over the past year (12.7%) exceeded the Healthcare industry 10.1%.


Return on Equity

High ROE: CHE's Return on Equity (33.8%) is considered high.


Next Steps

Financial Health

How is Chemed's financial position?


Financial Position Analysis

Short Term Liabilities: CHE's short term assets ($198.8M) do not cover its short term liabilities ($246.7M).

Long Term Liabilities: CHE's short term assets ($198.8M) do not cover its long term liabilities ($347.2M).


Debt to Equity History and Analysis

Debt Level: CHE's debt to equity ratio (23.4%) is considered satisfactory.

Reducing Debt: CHE's debt to equity ratio has reduced from 33.8% to 23.4% over the past 5 years.

Debt Coverage: CHE's debt is well covered by operating cash flow (198.1%).

Interest Coverage: CHE's interest payments on its debt are well covered by EBIT (76.3x coverage).


Balance Sheet


Next Steps

Dividend

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

0.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHE's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: CHE's dividend (0.27%) is low compared to the top 25% of dividend payers in the US market (4.58%).


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?

13.8yrs

Average management tenure


CEO

Kevin McNamara (66yo)

19.17yrs

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 ($USD10.02M) is above average for companies of similar size in the US market ($USD7.32M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin McNamara
CEO, President & Director19.17yrsUS$10.02m0.87% $65.9m
David Williams
Executive VP & CFO16.33yrsUS$3.95m0.14% $10.3m
Naomi Dallob
VP, Chief Legal Officer & Secretary11.17yrsUS$1.99m0.015% $1.1m
Spencer Lee
Executive Vice President20.17yrsUS$2.40m0.16% $11.9m
Nicholas Westfall
Executive Vice President4.08yrsUS$3.21m0.039% $3.0m
Michael Witzeman
VP & Controller3.25yrsno data0.038% $2.9m
Lisa Reinhard
VP, Chief Administrative Officer & Assistant Secretaryno datano datano data
Sherri Warner
Director of Investor Relationsno datano datano data
Thomas Hutton
VP & Director35.5yrsUS$15.11k0.66% $49.7m
Timothy O'Toole
Consultant4.08yrsUS$600.63kno data

13.8yrs

Average Tenure

64yo

Average Age

Experienced Management: CHE's management team is seasoned and experienced (13.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin McNamara
CEO, President & Director19.17yrsUS$10.02m0.87% $65.9m
Thomas Hutton
VP & Director35.5yrsUS$15.11k0.66% $49.7m
Thomas Rice
Independent Director11.17yrsUS$182.74k0.036% $2.7m
Sandra Laney
Director Emeritus11.17yrsUS$112.74kno data
Joel Gemunder
Independent Director43.5yrsUS$175.24k0.14% $10.6m
Patrick Grace
Independent Director24.5yrsUS$208.74k0.021% $1.6m
Donald Saunders
Independent Director22.17yrsUS$182.74k0.042% $3.2m
George Walsh
Independent Chairman11.33yrsUS$337.24k0.023% $1.7m
Andrea Lindell
Independent Director12.17yrsUS$176.24k0.036% $2.7m
Christopher Heaney
Independent Director0.17yrno data0.0063% $475.8k
Ron DeLyons
Independent Director0.17yrno data0.0018% $132.7k

12.2yrs

Average Tenure

70yo

Average Age

Experienced Board: CHE's board of directors are seasoned and experienced ( 12.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CHE insiders have sold more shares than they have bought 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$7.541b
  • Shares outstanding: 15.87m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 23:50
End of Day Share Price2020/07/15 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.