Chemed (CHE) AI Stock Analysis

Chemed

(BMV:CHE)

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Action:N/A

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Positive Factors

VITAS growth and marginsVITAS is demonstrating durable operating momentum through higher admissions, patient census, and reimbursement-supported revenue growth. Strong EBITDA expansion and cost controls indicate that scale and operating discipline can support earnings even as the business manages labor and regulatory pressures.

Negative Factors

Roto-Rooter margin pressureRoto-Rooter's profitability is being pressured by higher customer-acquisition and fuel costs, while paid leads are becoming a larger part of the mix. Persistent input and marketing pressures could limit operating leverage and reduce the earnings benefit of continued revenue growth.

Chemed (CHE) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 6.99B
Dividend Yield: 0.42%
Average Volume (3M): 10
Price to Earnings (P/E): 25.5
Beta (1Y): -0.03
Revenue Growth: -5.83%
EPS Growth: -1.62%
Country: Mexico
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...

Chemed Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 24, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Strong VITAS Revenue and Earnings Growth

VITAS revenue increased 12.2% in the third quarter of 2026 to $457.4 million, while adjusted net income increased 44.7% compared with the third quarter of 2025. The growth was driven primarily by a 9.4% increase in days of care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%.

Negative Updates

Roto-Rooter Adjusted EBITDA Decline

Roto-Rooter adjusted EBITDA declined 2.5% to $48.2 million compared with the third quarter of 2025. Adjusted EBITDA margin was 20.6%, a decline of 213 basis points.

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 Risk Analysis

Chemed disclosed 26 risk factors in its most recent earnings report. Chemed reported the most risks in the "Ability to Sell" category.

Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

0 New Risks

Chemed Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

MX:CHE against its peers
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%
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

MX:CHE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:CHE	Chemed	9475.44	1129.13	13.53%
ADUS	Addus HomeCare Corporation	125.54	13.32	11.87%
BKD	Brookdale Senior Living Inc.	10.39	1.22	13.30%
NHC	National Healthcare	206.14	85.81	71.31%
PNTG	Pennant Group Inc	41.66	16.38	64.79%
AVAH	Aveanna Healthcare Holdings Inc	13.16	3.85	41.35%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Chemed AI Stock Analysis