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Chemed (CHE) AI Stock Analysis
Chemed
(NYSE:CHE)
Overall score is driven primarily by solid underlying financial performance (profitability and cash generation) and a strong, confidence-leaning earnings call with supportive EPS outlook. The score is held back by margin pressures (notably at Roto-Rooter), higher leverage versus prior periods, and a valuation that is not cheap with a low dividend yield; technical indicators are mostly neutral and add limited support.
Chemed (CHE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $6.99B
- Dividend Yield
- 0.47%
- Average Volume (3M)
- 153.68K
- Price to Earnings (P/E)
- 25.5
- Beta (1Y)
- 0.28
- Revenue Growth
- 5.15%
- EPS Growth
- 10.03%
- Country
- US
- Employees
- 15,811
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Care Facilities
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 operates t...
How the Company Makes Money
Chemed makes money through operating income generated by its two reportable business segments—VITAS and Roto-Rooter—which earn revenue by delivering services and collecting payment from patients/customers, insurers, and other payors. 1) VITAS Healthc...
Chemed Earnings Call Summary
The call was strongly positive overall. VITAS delivered substantial revenue, earnings, admissions, census, margin, and Medicare cap improvements, while Roto-Rooter produced solid revenue and same-store growth, improved collections, and strategic franchise expansion. The principal challenges were Roto-Rooter's declining EBITDA and margin due to marketing and fuel costs, lower near-term margins from acquired franchises, nursing wage growth above reimbursement growth, shorter VITAS length of stay, and increased regulatory review activity. Management nevertheless expressed confidence in full-year adjusted EPS performance and the long-term prospects of both businesses.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management expects no Medicare cap billing limitation for the Florida combined program in the 2027 Medicare cap year; the pattern of high admissions from hospital and nonhospital settings is expected to continue for the remainder of 2026 and all of 2027; Roto Rooter is expected to return to its historic pattern through 2027 and beyond, although there is no budget yet for 2027 and no specifics were provided; the company expects to finish 2026 at or slightly above the high end of its full year 2026 adjusted EPS guidance; the California acquisition is expected to generate first year estimated revenue somewhere in the $30 to $35 million range and less than $4 million in EBITDA, with a 12 to 18 month process to implement the full Roto Rooter operating model; both cost headwinds are anticipated to persist in the fourth quarter; and no material increase in recruiting cost is anticipated for 2027.
Chemed Financial Statement Overview
Summary
Solid profitability and cash generation with continued (modest) revenue growth, supported by strong operating cash flow and free cash flow. The main offsets are margin compression versus prior years, a recent decline in free cash flow, and a meaningful increase in leverage that reduces financial flexibility.
Income Statement
78PositiveBalance Sheet
66PositiveCash Flow
72Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.66B | 2.53B | 2.43B | 2.26B | 2.13B | 2.14B |
| Gross Profit | 842.25M | 758.34M | 854.35M | 798.82M | 765.09M | 769.80M |
| EBITDA | 446.14M | 422.37M | 464.29M | 414.34M | 393.44M | 411.23M |
| Net Income | 282.40M | 265.24M | 302.00M | 272.51M | 249.62M | 268.55M |
Balance Sheet | ||||||
| Total Assets | 1.72B | 1.64B | 1.67B | 1.67B | 1.44B | 1.34B |
| Cash, Cash Equivalents and Short-Term Investments | 48.43M | 74.52M | 178.35M | 263.96M | 74.13M | 32.90M |
| Total Debt | 392.19M | 154.76M | 140.84M | 155.11M | 247.01M | 323.54M |
| Total Liabilities | 857.02M | 660.61M | 549.58M | 560.22M | 643.30M | 719.45M |
| Stockholders Equity | 861.42M | 979.40M | 1.12B | 1.11B | 798.72M | 623.27M |
Cash Flow | ||||||
| Free Cash Flow | 295.45M | 325.48M | 367.97M | 273.44M | 252.56M | 249.92M |
| Operating Cash Flow | 363.15M | 388.27M | 417.50M | 330.30M | 309.89M | 308.60M |
| Investing Cash Flow | -163.37M | -59.34M | -143.91M | -60.64M | -59.40M | -57.76M |
| Financing Cash Flow | -281.11M | -432.77M | -359.19M | -79.83M | -209.25M | -380.62M |
Chemed Technical Analysis
Price Trends
Market Momentum
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 539.25 is above the 20-day moving average (MA) of 513.20, above the 50-day MA of 514.74, and above the 200-day MA of 462.00, indicating a bullish trend. The MACD of 5.30 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.36 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.
Latest Risks Added
0 New RisksChemed Peers Comparison
Overall Rating
NHC85Outperform
ADUS82Outperform- CHE71Outperform
PNTG60Neutral
AVAH58Neutral
BKD47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NHC | 85Outperform | $3.23B | 22.83 | 12.94% | 1.27% | 7.19% | 32.91% |
| ADUS | 82Outperform | $2.34B | 22.10 | 9.57% | ― | 15.88% | 25.01% |
| CHE | 71Outperform | $6.96B | 25.52 | 32.10% | 0.47% | 5.15% | 10.03% |
| PNTG | 60Neutral | $1.46B | 44.32 | 9.51% | ― | 37.90% | 15.84% |
| AVAH | 58Neutral | $2.87B | 9.91 | 150.20% | ― | 19.52% | 1337.90% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| BKD | 47Neutral | $2.48B | -17.95 | 405.63% | ― | -4.42% | 44.67% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CHE | Chemed | 534.72 | 96.38 | 21.99% | |
| ADUS | Addus HomeCare Corporation | 125.54 | 6.55 | 5.50% | |
| BKD | Brookdale Senior Living Inc. | 10.39 | 1.22 | 13.30% | |
| NHC | National Healthcare | 206.14 | 86.88 | 72.85% | |
| PNTG | Pennant Group Inc | 41.66 | 16.61 | 66.31% | |
| AVAH | Aveanna Healthcare Holdings Inc | 13.16 | 3.75 | 39.85% |
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.
Date of analysis: Oct 28, 2026