Chemed Corporation
Chemed Corporation Fundamental Analysis
Chemed Corporation (CHE) shows moderate financial fundamentals with a PE ratio of 24.27, profit margin of 11.02%, and ROE of 24.37%. The company generates $2.5B in annual revenue with moderate year-over-year growth of 4.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CHE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCHE demonstrates superior asset utilization.
Valuation Score
ExcellentCHE trades at attractive valuation levels.
Growth Score
WeakCHE faces weak or negative growth trends.
Financial Health Score
ExcellentCHE maintains a strong and stable balance sheet.
Profitability Score
ModerateCHE maintains healthy but balanced margins.
Key Financial Metrics
Is CHE Expensive or Cheap?
P/E Ratio
CHE trades at 24.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CHE's PEG of -8.21 indicates potential undervaluation.
Price to Book
The market values Chemed Corporation at 6.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.46 times EBITDA. This signals the market has high growth expectations.
How Well Does CHE Make Money?
Net Profit Margin
For every $100 in sales, Chemed Corporation keeps $11.02 as profit after all expenses.
Operating Margin
Core operations generate 13.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.37 in profit for every $100 of shareholder equity.
ROA
Chemed Corporation generates $17.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chemed Corporation produces operating cash flow of $420.71M, showing steady but balanced cash generation.
Free Cash Flow
Chemed Corporation generates strong free cash flow of $361.35M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $24.80 in free cash annually.
FCF Yield
CHE converts 5.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-8.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How CHE Stacks Against Its Sector Peers
| Metric | CHE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.27 | 29.45 | Better (Cheaper) |
| ROE | 24.37% | 779.00% | Weak |
| Net Margin | 11.02% | -24936.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 1.35 | 4.65 | Neutral |
| ROA | 17.17% | -19344.00% (disorted) | Strong |
CHE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chemed Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.81%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-8.00%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-12.06%
Industry Style: Defensive, Growth, Innovation
Declining