Chemed CHE
United StatesHealthcare · Medical Care FacilitiesUSD
571.60 USD (+14.0%)
5 analysts
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Chemed Corp is a healthcare services company that operates two main businesses: VITAS, a provider of hospice care in the United States, and Roto-Rooter, a provider of plumbing and water damage restoration services.
Key points
from its scores- ✓Favourable backdrop8.4
- ✓High-quality business7.8
- ✓Strong growth7.7
- ✕Little or no dividend3.5
- !Somewhat demanding valuation5.1
AI analysis
bottom line, main risk, context and newsChemed's quality and growth are solid, but its valuation does not offer a wide margin of safety.
Chemed shows solid financial health (Net Debt/EBITDA of 0.61) and exceptional quality (ROIC of 30.46%, ROE of 27.11%), with earnings growth of 43.70% that partially justifies its valuation (P/E of 25.22). Its hospice and plumbing services business offers stable and resilient demand, although its dividend yield is low (0.56%).
The main risk is VITAS's dependence on Medicare reimbursement rates, which can be subject to regulatory adjustments and directly impact its margins.
Context and risks
Chemed operates in the healthcare sector, a segment with stable demand and low sensitivity to interest rates or commodities. Its balance sheet is solid (Net Debt/EBITDA of 0.61), so the rise in long-term US rates does not pose material financial pressure. No specific regulatory, geopolitical, or business model risks are identified that are not already reflected in its base risk profile.
Is Chemed stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Healthcare median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 25.2 | 26.7 | −6% |
| EV / EBITDA | 16.3 | 14.5 | +12% |
| Price / book | 7.9 | 4.1 | +91% |
| Price / sales | 2.5 | 3.4 | −26% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.1 out of 10 (median for Healthcare: 4.7).
Average analyst target: 571.60 USD, +14.0% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 25.2
- Forward P/E
- 18.2
- EV / EBITDA
- 16.3
- Price / book
- 7.9
- Price / sales
- 2.5
- PEG
- 1.86
- Market cap
- 6.6B USD
- Enterprise value
- 6.8B USD
Profitability
- ROE
- 27.1%
- ROA
- 13.5%
- ROIC (approx.)
- 30.5%
- Gross margin
- 33.1%
- Operating margin
- 13.2%
- Net margin
- 10.6%
- Free cash flow
- 307.9M USD
- FCF yield
- 4.7%
- Cash conversion
- 74%
Solvency
- Total debt
- 294.8M USD
- Net debt
- 254.6M USD
- Cash
- 40.2M USD
- EBITDA
- 416.9M USD
- Net debt / EBITDA
- 0.61
- Debt / equity
- 35.49
- Current ratio
- 0.91
- Quick ratio
- 0.72
Growth
- Revenue growth
- +8.8%
- Earnings growth
- +43.7%
- EPS (TTM)
- 19.88 USD
- EPS (forward)
- 27.52 USD
Dividend
- Dividend yield
- 0.6%
- Payout
- 12.1%
Risk and market
- Beta
- 0.51
- Analyst consensus
- Buy (5)
- Target price
- 571.60 USD
- 52-week range
- 365.21 – 557.00
Recent news
All CHE news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Chemed
Is Chemed stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Healthcare median (within 15%). Valuation score: 5.1 out of 10 (median for Healthcare: 4.7). Average analyst target: 571.60 USD, +14.0% versus the price. This is not investment advice.
What score does Chemed get on MeridIAn Screener?
It scores 6.8 out of 10, rank 310 of 2,130 (better than 83% of the companies analysed). Its strongest category is Risk & Context (8.4) and its weakest, Dividend (3.5). Analysis of 08/10/2026.
What is Chemed's P/E ratio?
Its P/E is 25.2: the share price equals 25.2 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 18.2.
How much is Chemed worth on the stock market?
Its market capitalisation is 6.6B USD and its enterprise value, debt included, is 6.8B USD.
How much debt does Chemed have?
Its net debt (debt minus cash) is 254.6M USD. That is 0.61 times its EBITDA; the Healthcare median is 1.53.
Does Chemed pay a dividend?
Yes: its dividend yield is 0.56% and it pays out 12% of its earnings.
How has Chemed stock performed over the last year?
It has risen 17.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 365.21 and 557.00 USD. Past performance does not guarantee future results.
What do analysts think of Chemed?
5 analysts cover it; their average recommendation is “Buy” and their average target is 571.60 USD (+14.0% versus the price). It is an estimate, not market data.