Chemed Corporation (CHE)
Healthcare · NYQ · US
Fundamentals
Valuation and ratings
Chemed Corporation trades at USD501.51, which is 61% above the USD196.91 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 53 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 26.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Chemed Corporation
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 through two segments: VITAS and Roto-Rooter segments. The company offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company also provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Chemed Corporation was incorporated in 1970 and is headquartered in Cincinnati, Ohio.
CHE passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Chemed Corporation (CHE) undervalued?
Against our discounted cash flow estimate of USD196.91, CHE at USD501.51 is 61% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CHE's P/E ratio?
CHE trades at 26.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.