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.
as of March 2026
Are revenues and earnings expanding?
$2.54B in TTM revenue grew 2.1% YoY, reaching $657.51M last quarter. TTM EBITDA of $393.76M on operating income of $84.58M shows growth is flowing through. Net income of $259.78M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.
Is revenue turning into profit effectively?
Op. margin of 12.9% is down 1.8% YoY — costs are rising relative to revenue. Net margin at 10.1% and gross margin of 32.8%. ROE of 30.6% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 23.0x P/E, the stock trades in line with market averages — fairly valued. P/S of 2.3x and P/B of 7.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $1.54B in assets and $91.20M in long-term debt, the D/E of 0.1 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $71.10M on $88.22M in operating cash flow. The FCF / Net Income ratio of 0.3x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $16.86M provide financial flexibility. Shares outstanding declined 6.5% YoY — buybacks are returning capital to shareholders.
Competitive analysis based on 64 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.
Data-driven red flags and warnings across 64 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.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and 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.