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Chemed
(NYSE:CHE)
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Rating:77Outperform
Price Target:
$588.00
▲(15.04% Upside)
Action:Reiterated
Date:07/29/26
CHE’s score is driven primarily by strong fundamentals (solid margins, strong cash conversion and free cash flow) and supportive price trend (trading above key moving averages). The raised and upbeat guidance from the latest earnings call further strengthens the outlook, while the overall score is moderated by a less attractive valuation (P/E ~26, low yield) and some fundamental pressure signals (TTM margin compression, weaker FCF growth, and higher leverage vs. 2025).
Positive Factors
Strong cash generation
Consistent excess operating cash (OCF ~1.22x net income) and sizable FCF provide durable funding for capex, tuck‑ins, franchise buybacks and working capital. Strong cash conversion enhances resilience to reimbursement shocks and underpins shareholder returns and reinvestment capacity.
Negative Factors
Margin compression and FCF slowdown
Eroding margins alongside a meaningful drop in FCF growth and a rising debt‑to‑equity ratio reduce financial flexibility. Over time this can constrain capital allocation choices, increase borrowing costs in stress scenarios, and limit ability to fund organic or acquisition growth without margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent excess operating cash (OCF ~1.22x net income) and sizable FCF provide durable funding for capex, tuck‑ins, franchise buybacks and working capital. Strong cash conversion enhances resilience to reimbursement shocks and underpins shareholder returns and reinvestment capacity.
Read all positive factors
Chemed (CHE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.87B
Dividend Yield0.45%
Average Volume (3M)186.16K
Price to Earnings (P/E)26.0
Beta (1Y)0.25
Revenue Growth3.31%
EPS Growth1.56%
CountryUS
Employees15,811
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)19.92
Shares Outstanding13,274,104
10 Day Avg. Volume157,729
30 Day Avg. Volume186,159
Financial Highlights & Ratios
PEG Ratio-2.78
Price to Book (P/B)6.29
Price to Sales (P/S)2.43
P/FCF Ratio18.93
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)24.34
Revenue Forecast (FY)$2.69B
Chemed Business Overview & Revenue Model
Company Description
Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, doctors, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operate...
How the Company Makes Money
Chemed makes money through two primary operating segments:
1) VITAS (Hospice and palliative care)
- Core revenue model: VITAS earns revenue by providing hospice and palliative care services to patients, generally in the patient’s home, nursing fa...
Chemed Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call was decidedly positive: VITAS delivered strong top-line and profitability beats, materially improved Medicare cap positioning, and management raised full-year guidance across ADC, revenue and EBITDA margin while consolidated cash generation exceeded expectations. Roto-Rooter showed commercial momentum, margin recovery in gross profit, and strategic franchise buybacks, but faces persistent lead-generation/marketing cost pressure, water restoration transitional issues and modest margin drag. Regulatory oversight and mix/length-of-stay dynamics at VITAS are noted risks but were framed as managed and not materially impairing guidance.Positive Updates
VITAS Revenue and Admissions Growth
VITAS net revenue of $443.3M in Q2 2026, up 11.9% YoY; admissions totaled 19,125 (up 9% YoY). Days of care (ADC driver) increased 6.1% and average daily census was 23,687 (up 6.1%), with total patient census exceeding 24,000 at quarter end.
Negative Updates
Roto-Rooter Lead Generation and Marketing Cost Pressure
Total leads in Q2 were down 1.6% YoY; free leads declined 13.1% while paid leads increased 7.3% (paid leads were ~59% of total vs 54% prior), driving increased marketing spend of about $3.1M and higher customer acquisition costs.
Read all updates
Q2-2026 Updates
Positive
Negative
VITAS Revenue and Admissions Growth
VITAS net revenue of $443.3M in Q2 2026, up 11.9% YoY; admissions totaled 19,125 (up 9% YoY). Days of care (ADC driver) increased 6.1% and average daily census was 23,687 (up 6.1%), with total patient census exceeding 24,000 at quarter end.
Read all positive updates
Company Guidance
Chemed raised midyear guidance: VITAS now targets full‑year ADC growth of 5.75%–6.25% (prior 4.5%–5.5%), revenue growth excluding Medicare cap of 8.25%–9.25% (prior 6.5%–7.5%), and adjusted EBITDA margin excluding Medicare cap of 19.0%–19.5% (prior 18.0%–18.5%), and expects full‑year Medicare cap billing limitation of $7.0 million (down from $9.5M); Roto‑Rooter guidance was unchanged at +3.0%–3.5% revenue growth and a 21.5%–22.5% adjusted EBITDA margin; consolidated 2026 adjusted diluted EPS (ex select items) is guided to $25.00–$25.75 (midpoint +7.8% vs. 2025 adjusted EPS of $20.21), assuming a 24.5% effective tax rate and ~13.5 million diluted shares.Chemed Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.60B | 2.53B | 2.43B | 2.26B | 2.13B | 2.14B |
| Gross Profit | 386.66M | 758.34M | 854.35M | 798.82M | 765.09M | 769.80M |
| EBITDA | 401.94M | 422.37M | 464.29M | 414.34M | 393.44M | 411.23M |
| Net Income | 274.99M | 265.24M | 302.00M | 272.51M | 249.62M | 268.55M |
Balance Sheet | ||||||
| Total Assets | 1.58B | 1.64B | 1.67B | 1.67B | 1.44B | 1.34B |
| Cash, Cash Equivalents and Short-Term Investments | 40.22M | 74.52M | 178.35M | 263.96M | 74.13M | 32.90M |
| Total Debt | 294.79M | 154.76M | 140.84M | 155.11M | 247.01M | 323.54M |
| Total Liabilities | 749.08M | 660.61M | 549.58M | 560.22M | 643.30M | 719.45M |
| Stockholders Equity | 830.51M | 979.40M | 1.12B | 1.11B | 798.72M | 623.27M |
Cash Flow | ||||||
| Free Cash Flow | 323.61M | 325.48M | 367.97M | 273.44M | 252.56M | 249.92M |
| Operating Cash Flow | 389.95M | 388.27M | 417.50M | 330.30M | 309.89M | 308.60M |
| Investing Cash Flow | -96.21M | -59.34M | -143.91M | -60.64M | -59.40M | -57.76M |
| Financing Cash Flow | -503.42M | -432.77M | -359.19M | -79.83M | -209.25M | -380.62M |
Chemed Technical Analysis
Positive
511.13
Price Trends
460.46
Positive
428.67
Positive
433.54
Positive
Market Momentum
16.14
Negative
71.04
Negative
67.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHE, the sentiment is Positive. The current price of 511.13 is above the 20-day moving average (MA) of 495.59, above the 50-day MA of 460.46, and above the 200-day MA of 433.54, indicating a bullish trend. The MACD of 16.14 indicates Negative momentum. The RSI at 71.04 is Negative, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHE.
Chemed Risk Analysis
Chemed disclosed 26 risk factors in its most recent earnings report. Chemed reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chemed Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.61B | 28.95 | 11.68% | 1.15% | 11.40% | 13.96% | |
77 Outperform | $6.87B | 25.99 | 29.45% | 0.47% | 3.31% | 1.56% | |
77 Outperform | $2.23B | 22.04 | 9.34% | ― | 19.55% | 21.54% | |
71 Outperform | $10.67B | 27.88 | 16.63% | 0.15% | 18.89% | 15.48% | |
70 Outperform | $15.37B | 23.59 | -133.12% | ― | 6.68% | 2.79% | |
69 Neutral | $3.53B | 17.43 | 15.28% | ― | 5.95% | 5.33% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CHE
Chemed
539.36
125.03
30.18%
ADUS
Addus Homecare
119.13
11.25
10.43%
OPCH
Option Care Health
23.93
-6.71
-21.90%
DVA
DaVita
240.96
96.39
66.67%
NHC
National Healthcare
228.66
134.70
143.36%
ENSG
The Ensign Group
181.89
31.73
21.13%
Chemed Corporate Events
Executive/Board ChangesShareholder Meetings
Chemed Investors Reject Executive Pay Amid Board Reelection
Negative
May 19, 2026
At its May 18, 2026 annual meeting, Chemed Corporation shareholders elected the full slate of nine directors, including CEO Kevin J. McNamara, with each nominee receiving sufficient support to constitute the entire Board. Investors also ratified t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.