Chemed CorporationCHE
NYSE•Healthcare•Medical Care Facilities
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 operates through two segments: VITAS and Roto-Rooter segments. The company offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company also provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Chemed Corporation was incorporated in 1970 and is headquartered in Cincinnati, Ohio.
Chemed Corp (CHE) reported trailing twelve months revenue of $2.54B as of March 2026, a 2.1% increase year-over-year. Quarterly revenue reached $657.51M, reflecting continued top-line momentum.
Chemed Corp generated $259.78M in TTM net income, with quarterly EBITDA of $101.45M. The operating margin contracted from 14.6% to 12.9%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (12.9%) and net margin (10.1%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 11.1% a year ago, reflecting increased costs or interest expense.
CHE trades at a P/E of 23.0x (in line with broad market averages) and a P/S of 2.3x. The price-to-book ratio of 7.0x indicates a significant premium over book value.
The company generated $71.10M in free cash flow over the trailing twelve months, a 265.3% increase year-over-year, indicating cash generation ability. The balance sheet shows $1.54B in total assets with $91.20M in long-term debt against $847.99M in stockholders equity for a debt-to-equity ratio of 0.1, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~14.3% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 26.3% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (6 of 7 quarters up), with ~8.8% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 17.4% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.2x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 9.4% — net buybacks are reducing shares outstanding and boosting per-share value.