Chemed Corporation (CHE) AI Stock Analysis

Chemed Corporation specializes in delivering hospice and palliative care services across the United States, alongside essential commercial and residential plumbing services. The company operates through two distinct segments: VITAS and Roto-Rooter. VITAS focuses on hospice care, providing specialized medical support, pain management, symptom control, and emotional assistance for terminally ill patients in homes, hospice centers, and nursing facilities. The Roto-Rooter segment offers plumbing, drain cleaning, excavation, and water restoration solutions to residential and commercial clients through company-owned branches, independent contractors, and franchises. Founded in 1970 and based in Cincinnati, Ohio, Chemed operates with 15,811 employees.

Chemed expanded revenue from $2.14B in FY2021 to $2.53B in FY2025, achieving a 5-year revenue CAGR of 4.0% from FY2020 to FY2025. Annual net income moved from $268.6M in FY2021 to a peak of $302.0M in FY2024 before settling at $265.2M in FY2025. Over the same period, gross margin compressed from 36.0% in FY2021 to 30.0% in FY2025, and operating margin declined from 16.0% to 13.4%. Over the trailing twelve months, revenue reached $2.60B with an operating margin of 13.2% and EPS of $19.88. In the quarter ended June 30, 2026, revenue increased 8.8% year-over-year and quarterly earnings grew 43.7%.

As of June 30, 2026, Chemed held $40.2M in cash and short-term investments against total debt of $329.1M, yielding net debt of $288.9M. The company maintains a debt-to-equity ratio of 0.40, a current ratio of 0.91, and shareholders' equity of $830.5M out of $1.58B in total assets. During FY2025, Chemed generated $388.3M in operating cash flow and directed $62.8M toward capital expenditures. Cash deployment focused heavily on shareholder returns, including $431.5M in share buybacks and $31.7M in dividends paid, contributing to a 13.5% reduction in share count over five years.

Chemed trades at a trailing P/E of 25.8x and a forward P/E of 18.2x, compared to medians of 24.6x and 17.3x, respectively, for the median of its US-listed Healthcare peers. Its enterprise value stands at $6.76B, resulting in an EV-to-EBITDA multiple of 15.4x compared to the peer median of 12.0x. Chemed's price-to-sales ratio is 2.6x, below the peer median of 4.1x. Over the past year, the stock returned 19.5%, outperforming the S&P 500's 16.8% return. Over five years, the stock gained 21.3%, trailing the S&P 500's 83.0% return.

Chemed pays an annualized forward dividend of $2.80 per share, offering a dividend yield of 0.55% with a payout ratio of 10.9%. The company distributes dividends quarterly and has paid dividends for 42 consecutive years. Its dividend has grown at an annualized rate of 10.8% over the past five years, with the last ex-dividend date occurring on August 17, 2026.

Wall Street coverage includes 2 Strong Buy ratings and 3 Hold ratings, with zero Buy, Sell, or Strong Sell recommendations. The mean price target is $571.60, representing an 11.6% upside from the October 16, 2026 closing price of $512.38. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $25.49 on revenue of $2.72B. Chemed beat earnings estimates in 2 of the last 4 quarters, and its next earnings release is scheduled for October 27, 2026.

This page is an AI-written research summary of Chemed Corporation (CHE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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