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

-0.4%

NYSE:CHE

-1.3%

US Healthcare

-1.0%

US Market


1 Year Return

35.1%

NYSE:CHE

-5.3%

US Healthcare

-0.4%

US Market

CHE outperformed the Healthcare industry which returned -5.3% over the past year.

CHE outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

CHEIndustryMarket
7 Day-0.4%-1.3%-1.0%
30 Day14.6%-2.3%-3.3%
90 Day29.6%4.4%0.8%
1 Year35.6%35.1%-3.9%-5.3%1.9%-0.4%
3 Year232.2%227.7%28.2%22.9%39.4%30.4%
5 Year329.6%317.6%70.8%60.7%54.2%37.1%

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

34.22x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Chemed's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Chemed's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Chemed is poor value based on expected growth next year.


Price Based on Value of Assets

Chemed is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

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

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Chemed's revenue is expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

Chemed's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).

Chemed's revenue growth is expected to exceed the United States of America market average.

Chemed's earnings growth is positive but not above the United States of America market average.

Chemed's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Chemed will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Chemed's year on year earnings growth rate has been positive over the past 5 years.

Chemed's 1-year earnings growth is less than its 5-year average (5.8% vs 16.8%)

Chemed's earnings growth has exceeded the US Healthcare industry average in the past year (5.8% vs 5.3%).


Return on Equity

Chemed has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Chemed used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Chemed has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Chemed's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Chemed's level of debt (13.7%) 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 (36% vs 13.7% today).

Debt is well covered by operating cash flow (323.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 61.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

0.30%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Chemed's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Chemed's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

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.


Next Steps

Management

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

12.8yrs

Average management tenure


CEO

Kevin McNamara (65yo)

18.3yrs

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

Kevin's remuneration is about average for companies of similar size in United States of America.

Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

12.8yrs

Average Tenure

63yo

Average Age

The average tenure for the Chemed management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

19.3yrs

Average Tenure

74yo

Average Age

The average tenure for the Chemed board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Chemed individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$173,14714 Aug 19
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Shares400
Max PriceUS$432.99
SellUS$3,015,60012 Aug 19
David Williams
EntityIndividual
Role
Executive VP & CFO
Shares7,000
Max PriceUS$430.80
SellUS$853,50008 Aug 19
Spencer Lee
EntityIndividual
Role
Executive Vice President
Shares2,000
Max PriceUS$426.75
SellUS$5,001,60008 Aug 19
Kevin McNamara
EntityIndividual
Role
CEO, President & Director
Member of the Board of Directors
Shares12,000
Max PriceUS$416.80
BuyUS$206,43007 Aug 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Shares500
Max PriceUS$412.86
SellUS$106,76607 Aug 19
Patrick Grace
EntityIndividual
Role
Member of the Board of Directors
Shares257
Max PriceUS$415.43
SellUS$211,13206 May 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Shares646
Max PriceUS$326.83
SellUS$183,35422 Mar 19
Kevin McNamara
EntityIndividual
Role
CEO, President & Director
Member of the Board of Directors
Shares565
Max PriceUS$324.52
SellUS$131,42422 Mar 19
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Shares400
Max PriceUS$328.56
BuyUS$56915 Mar 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Shares2
Max PriceUS$320.30
BuyUS$13,33515 Mar 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Shares51
Max PriceUS$322.87
SellUS$241,08013 Mar 19
Michael Witzeman
EntityIndividual
Role
VP & Controller
Shares735
Max PriceUS$328.00
SellUS$655,33827 Feb 19
Thomas Rice
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUS$328.26
SellUS$310,01427 Feb 19
Naomi Dallob
EntityIndividual
Role
VP, Chief Legal Officer & Secretary
Shares950
Max PriceUS$326.33
SellUS$36,59625 Feb 19
Spencer Lee
EntityIndividual
Role
Executive Vice President
Shares112
Max PriceUS$326.75
SellUS$132,13625 Feb 19
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Shares400
Max PriceUS$330.34
SellUS$328,07025 Feb 19
George Walsh
EntityIndividual
Role
Chairman of the Board
Shares1,000
Max PriceUS$328.07
SellUS$210,57430 Nov 18
Spencer Lee
EntityIndividual
Role
Executive Vice President
Shares669
Max PriceUS$314.76
SellUS$3,023,00021 Nov 18
David Williams
EntityIndividual
Role
Executive VP & CFO
Shares10,000
Max PriceUS$302.30
SellUS$204,52416 Nov 18
Spencer Lee
EntityIndividual
Role
Executive Vice President
Shares657
Max PriceUS$311.30
SellUS$92,62209 Nov 18
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Shares300
Max PriceUS$308.74
SellUS$1,456,40307 Nov 18
Naomi Dallob
EntityIndividual
Role
VP, Chief Legal Officer & Secretary
Shares4,591
Max PriceUS$317.23
SellUS$454,38005 Nov 18
Kevin McNamara
EntityIndividual
Role
CEO, President & Director
Member of the Board of Directors
Shares1,485
Max PriceUS$305.98
SellUS$549,33224 Aug 18
Michael Witzeman
EntityIndividual
Role
VP & Controller
Shares1,706
Max PriceUS$322.00
SellUS$95,76623 Aug 18
Donald Saunders
EntityIndividual
Role
Member of the Board of Directors
Shares300
Max PriceUS$319.25

Ownership Breakdown


Management Team

  • Kevin McNamara (65yo)

    CEO, President & Director

    • Tenure: 18.3yrs
    • Compensation: $8.78m
  • Tim O'Toole (63yo)

    Consultant

    • Tenure: 3.2yrs
    • Compensation: $600.63k
  • Spencer Lee (63yo)

    Executive Vice President

    • Tenure: 19.3yrs
    • Compensation: $2.68m
  • Naomi Dallob (65yo)

    VP, Chief Legal Officer & Secretary

    • Tenure: 10.3yrs
    • Compensation: $1.97m
  • David Williams (58yo)

    Executive VP & CFO

    • Tenure: 15.4yrs
    • Compensation: $4.19m
  • Sherri Warner

    Director of Investor Relations

  • Lisa Reinhard

    VP, Chief Administrative Officer & Assistant Secretary

  • Michael Witzeman (48yo)

    VP & Controller

    • Tenure: 2.3yrs
  • Nick Westfall (40yo)

    Executive Vice President

    • Tenure: 3.2yrs
    • Compensation: $3.07m
  • Thomas Hutton (68yo)

    VP & Director

    • Tenure: 31.5yrs
    • Compensation: $15.11k

Board Members

  • George Walsh (73yo)

    Non Executive Chairman

    • Tenure: 10.4yrs
    • Compensation: $336.11k
  • Joel Gemunder (79yo)

    Director

    • Tenure: 42.6yrs
    • Compensation: $172.11k
  • Kevin McNamara (65yo)

    CEO, President & Director

    • Tenure: 32.6yrs
    • Compensation: $8.78m
  • Tom Rice (69yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: $180.61k
  • Donald Saunders (75yo)

    Director

    • Tenure: 21.3yrs
    • Compensation: $182.61k
  • Walter Krebs (86yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: $173.11k
  • Andrea Lindell (75yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: $173.11k
  • Frank Wood (76yo)

    Director

    • Tenure: 17.3yrs
    • Compensation: $173.11k
  • Patrick Grace (63yo)

    Director

    • Tenure: 23.6yrs
    • Compensation: $206.61k
  • Thomas Hutton (68yo)

    VP & Director

    • Tenure: 34.6yrs
    • Compensation: $15.11k

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$6.845b
  • Shares outstanding: 15.92m
  • Website: Click here

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 Analysis2019/08/17 23:54
End of Day Share Price2019/08/16 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.