📊 CHE Key Takeaways
Is Chemed Corp. (CHE) a Good Investment?
Chemed demonstrates exceptional financial health with dominant profitability metrics (27.1% ROE, 17.2% ROA) and outstanding cash generation (325.5M FCF, 12.9% FCF margin). The company maintains fortress-like balance sheet strength with minimal leverage (0.02x Debt/Equity) and exceptional interest coverage (193.3x), despite near-term headwinds from a 12.2% YoY net income decline that appears cyclical rather than structural given stable 13.4% operating margins and 4.1% revenue growth.
Chemed shows strong underlying fundamentals with double-digit operating and net margins, very high returns on equity and assets, and solid free cash flow conversion. Balance sheet risk is low given minimal long-term debt and exceptional interest coverage, though the recent decline in net income and only modest revenue growth suggest the business is solid rather than accelerating.
Why Buy Chemed Corp. Stock? CHE Key Strengths
- Exceptional profitability with 27.1% ROE and 17.2% ROA significantly above industry benchmarks
- Superior free cash flow generation ($325.5M) representing 12.9% of revenue demonstrates high-quality earnings
- Fortress balance sheet with minimal debt (0.02x D/E ratio) and exceptional interest coverage ratio of 193.3x provides significant financial flexibility
- Operating margin stability at 13.4% suggests underlying business resilience despite net income volatility
- Strong profitability profile with 13.4% operating margin and 10.5% net margin
- High-quality cash generation with $325.48M in free cash flow and a 12.9% FCF margin
- Very conservative balance sheet with just $21.25M of long-term debt and 193.3x interest coverage
CHE Stock Risks: Chemed Corp. Investment Risks
- Net income declined 12.2% YoY while EPS fell 7.8%, indicating recent margin compression or one-time charges that warrant investigation
- Tight liquidity position with current ratio of 1.05x limits short-term financial flexibility despite strong cash generation
- Home health care sector faces regulatory and reimbursement pressures from CMS that could impact future margin sustainability
- Revenue growth of 4.1% YoY is moderate for the industry, suggesting potential market saturation or competitive pressure
- Net income declined 12.2% year over year despite revenue growth, indicating margin or cost pressure below the revenue line
- Revenue growth of 4.1% is steady but not especially strong for a premium fundamental profile
- Liquidity is adequate but tight, with current and quick ratios just above 1.0x
Key Metrics to Watch
- Operating margin trend - critical to monitor if 13.4% can be maintained or if compression continues
- Free cash flow conversion - verify 325.5M FCF sustainability and capital allocation discipline
- Revenue growth acceleration - watch if 4.1% YoY growth can inflect higher or indicates structural headwinds
- Net income recovery trajectory - determine if 12.2% YoY decline was one-time or reflects ongoing pressure
- Net income and operating margin trend
- Free cash flow conversion relative to revenue and earnings
Chemed Corp. (CHE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Chemed Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CHE Profit Margin, ROE & Profitability Analysis
CHE vs Services Sector: How Chemed Corp. Compares
How Chemed Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Chemed Corp. Stock Overvalued? CHE Valuation Analysis 2026
Based on fundamental analysis, Chemed Corp. appears fundamentally strong relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Chemed Corp. Balance Sheet: CHE Debt, Cash & Liquidity
CHE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Chemed Corp.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $17.93 reflects profitable operations.
CHE Revenue Growth, EPS Growth & YoY Performance
CHE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $333.7M | $75.0M | $4.93 |
| Q2 2024 | $320.9M | $53.4M | $3.51 |
| Q1 2024 | $310.5M | $54.1M | $3.58 |
| Q3 2023 | $296.5M | $56.9M | $3.78 |
| Q2 2023 | $297.8M | $53.4M | $3.51 |
| Q1 2023 | $299.2M | $54.1M | $3.58 |
| Q3 2022 | $296.5M | $56.9M | $3.78 |
| Q2 2022 | $297.8M | $56.5M | $3.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Chemed Corp. Dividends, Buybacks & Capital Allocation
CHE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Chemed Corp. (CIK: 0000019584)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CHE
What is the AI rating for CHE?
Chemed Corp. (CHE) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHE's key strengths?
Claude: Exceptional profitability with 27.1% ROE and 17.2% ROA significantly above industry benchmarks. Superior free cash flow generation ($325.5M) representing 12.9% of revenue demonstrates high-quality earnings. ChatGPT: Strong profitability profile with 13.4% operating margin and 10.5% net margin. High-quality cash generation with $325.48M in free cash flow and a 12.9% FCF margin.
What are the risks of investing in CHE?
Claude: Net income declined 12.2% YoY while EPS fell 7.8%, indicating recent margin compression or one-time charges that warrant investigation. Tight liquidity position with current ratio of 1.05x limits short-term financial flexibility despite strong cash generation. ChatGPT: Net income declined 12.2% year over year despite revenue growth, indicating margin or cost pressure below the revenue line. Revenue growth of 4.1% is steady but not especially strong for a premium fundamental profile.
What is CHE's revenue and growth?
Chemed Corp. reported revenue of $2.5B.
Does CHE pay dividends?
Chemed Corp. pays dividends, with $31.7M distributed to shareholders in the trailing twelve months.
Where can I find CHE SEC filings?
Official SEC filings for Chemed Corp. (CIK: 0000019584) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CHE's EPS?
Chemed Corp. has a diluted EPS of $18.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CHE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Chemed Corp. has a BUY rating with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CHE stock overvalued or undervalued?
Valuation metrics for CHE: ROE of 27.1% (sector avg: 16%), net margin of 10.5% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy CHE stock in 2026?
Our dual AI analysis gives Chemed Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CHE's free cash flow?
Chemed Corp.'s operating cash flow is $388.3M, with capital expenditures of $62.8M. FCF margin is 12.9%.
How does CHE compare to other Services stocks?
Vs Services sector averages: Net margin 10.5% (avg: 10%), ROE 27.1% (avg: 16%), current ratio 1.05 (avg: 1.5).
Why is CHE's return on equity (ROE) so high?
Chemed Corp. has a return on equity of 27.1%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 10.5% net margin.