Chemed Corporation
- Open
- 522.33
- Day high
- 523.02
- Day low
- 517.29
- Prev close
- 523.38
- Volume
- 94K
- Mkt cap
- $6.8B
- P/E (TTM)
- 26.0
- EPS (TTM)
- $19.92
- P/B
- 8.1
- P/S
- 2.6
- Yield
- 0.48%
- Per share
- $2.50
- ▼Insiders net selling -$3.4M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
Chemed Corporation (CHE) is a Healthcare company listed on NYSE. The stock is up 12% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4).
Chemed Corporation (CHE) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CHE earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $5.60 | $6.06 | +8.2% | $673M | +1.2% |
| Apr 24, 2026 | $5.30 | $5.65 | +6.6% | $658M | +1.2% |
| Feb 26, 2026 | $7.02 | $6.42 | -8.5% | $639M | -4.0% |
| Jul 29, 2025 | $4.78 | $4.27 | -10.7% | $619M | -2.0% |
| Apr 23, 2025 | $5.55 | $5.63 | +1.4% | $647M | +0.8% |
| Feb 26, 2025 | $6.78 | $6.83 | +0.7% | $640M | +0.6% |
| Jul 24, 2024 | $5.59 | $5.47 | -2.1% | $596M | -0.6% |
| Feb 27, 2024 | $6.25 | $6.60 | +5.6% | $586M | +0.0% |
| Oct 25, 2023 | $4.90 | $5.32 | +8.6% | $565M | +1.1% |
| Jul 26, 2023 | $5.09 | $4.71 | -7.5% | $554M | -1.2% |
| Feb 23, 2023 | $5.32 | $5.39 | +1.3% | $547M | +0.0% |
| Oct 31, 2022 | $4.65 | $4.74 | +1.9% | $526M | -0.1% |
CHE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 24, 2026 | LEE SPENCER Sofficer: executive vice president | Sell | 1,000 | $541.04 |
| Aug 24, 2026 | MCNAMARA KEVIN Jdirector, officer: president and CEO | Sell | 2,000 | $541.16 |
| Aug 10, 2026 | Judkins Brian Cofficer: VP and Chief Legal Officer | Tax | 5,878 | $548.96 |
| Aug 10, 2026 | Judkins Brian Cofficer: VP and Chief Legal Officer | Option | 6,786 | $445.35 |
| Aug 6, 2026 | Wherley Joel Lofficer: CEO - Vitas Healthcare | Tax | 2,270 | $542.62 |
| Aug 6, 2026 | Wherley Joel Lofficer: CEO - Vitas Healthcare | Option | 2,599 | $445.35 |
| Aug 4, 2026 | MCNAMARA KEVIN Jdirector, officer: president and CEO | Option | 2,001 | $445.35 |
| Aug 4, 2026 | MCNAMARA KEVIN Jdirector, officer: president and CEO | Sell | 2,000 | $539.51 |
| Aug 4, 2026 | MCNAMARA KEVIN Jdirector, officer: president and CEO | Tax | 19,802 | $529.22 |
| Aug 3, 2026 | GRACE PATRICK Pdirector | Sell | 190 | $532.00 |
| Jun 10, 2026 | LINDELL ANDREA Rdirector | Sell | 1,347 | $447.33 |
| May 29, 2026 | WALSH GEORGE J IIIdirector | Sell | 500 | $437.83 |
| May 19, 2026 | Mount John Meredith Jr.director | Grant | 386 | $440.77 |
| May 19, 2026 | GRACE PATRICK Pdirector | Grant | 386 | $440.77 |
| May 19, 2026 | McCarthy Eileen Pdirector | Grant | 386 | $440.77 |
Source: CHE SEC Form 4 filings, latest Aug 24, 2026. For informational purposes only — not investment advice.
See the full CHE insider & 13F page →Chemed Corporation company profile
Overview
Chemed Corporation (NYSE:CHE) is a diversified healthcare and home services company founded in 1970 and headquartered in Cincinnati, Ohio. The company went public in 1973 and has evolved into a leading provider of hospice care services and residential/commercial plumbing services across the United States. Chemed operates through two distinct business segments: VITAS Healthcare, which provides hospice and palliative care services, and Roto-Rooter, which offers plumbing, drain cleaning, and water restoration services. The company has built a strong market position in both sectors through organic growth, strategic acquisitions, and consistent operational execution over its five-decade history.
Business
Chemed operates in two fundamentally different industries through its dual business model. VITAS Healthcare represents the company's hospice and palliative care division, serving terminally ill patients with less than six months to live. Hospice care is a specialized form of medical care that focuses on comfort and quality of life rather than curative treatment, providing comprehensive services including pain management, emotional support, medical equipment, and coordination of care through teams of physicians, nurses, social workers, chaplains, and volunteers. VITAS operates as one of the largest hospice providers in the United States, serving patients primarily in their homes, nursing facilities, and dedicated hospice centers. This segment generates approximately 63% of total company revenue. Roto-Rooter is the company's plumbing and drain cleaning business, providing emergency and scheduled plumbing services to residential and commercial customers. The business operates through a combination of company-owned locations and franchised operations, offering services including drain cleaning, pipe repair, water line services, excavation work, and water damage restoration. Roto-Rooter has built strong brand recognition through decades of marketing and maintains a 24/7 emergency service model that differentiates it from local competitors. This segment accounts for approximately 37% of total revenue. The plumbing services industry is highly fragmented, with Roto-Rooter competing against thousands of local and regional plumbing contractors across the United States.
Revenue model
Chemed generates revenue through two distinct business models. VITAS Healthcare operates primarily on a per-diem reimbursement model where the company receives daily payments for each patient under care, with approximately 95% of revenue coming from Medicare and Medicaid programs. The Medicare hospice benefit pays a fixed daily rate that varies by level of care (routine home care, continuous home care, inpatient respite care, or general inpatient care), creating predictable revenue streams based on patient census levels. The company's profitability depends on managing the cost of care delivery while maintaining quality standards and regulatory compliance. Roto-Rooter generates revenue through direct service fees charged to residential and commercial customers for plumbing services. The business model includes both emergency service calls (typically higher-margin due to urgency) and scheduled maintenance work. Revenue is driven by call volume, service pricing, and the company's ability to convert service calls into additional work. The business benefits from recurring demand due to the essential nature of plumbing services and the company's strong brand recognition. Key factors affecting margins include healthcare labor costs and availability for VITAS (representing the largest expense category), Medicare reimbursement rate changes, patient acuity levels, and regulatory compliance costs. For Roto-Rooter, margin drivers include technician labor costs, fuel prices, competition from local providers, consumer spending patterns, and the company's ability to maintain pricing power through brand differentiation and service quality. Both segments face inflationary pressures on labor and operational costs, though VITAS has more limited ability to immediately adjust pricing due to government reimbursement structures.
Competitive moat
Chemed possesses moderate competitive advantages that vary significantly between its two business segments. VITAS Healthcare operates in a regulated healthcare environment that creates barriers to entry through licensing requirements, Certificate of Need regulations in many states, and the complexity of Medicare/Medicaid billing and compliance. The company benefits from established relationships with hospitals, physicians, and healthcare systems that serve as referral sources, along with operational scale that enables efficient care delivery and regulatory compliance. However, the hospice industry has become increasingly competitive with new entrants, and VITAS faces ongoing regulatory scrutiny regarding Medicare cap limitations and patient eligibility. Roto-Rooter's competitive position is built on brand recognition and operational scale rather than structural barriers. The company has invested decades in building national brand awareness through advertising, which provides advantages in customer acquisition compared to local competitors. The 24/7 service model and geographic coverage create convenience benefits, while the franchise model enables rapid market expansion with lower capital requirements. However, the plumbing services industry remains highly fragmented with low barriers to entry, and the company faces constant competitive pressure from local providers who may offer lower prices. The most significant competitive threat to both segments comes from labor market dynamics. Both businesses are highly dependent on skilled workers (healthcare professionals for VITAS, licensed plumbers for Roto-Rooter) in tight labor markets, which can pressure margins and limit growth capacity. Additionally, VITAS faces potential disruption from healthcare policy changes, while Roto-Rooter must adapt to evolving consumer preferences and digital marketing channels.
Risks & safety
Chemed demonstrates a strong financial position with substantial margin of safety across multiple metrics: • Excellent liquidity position: $174 million in cash and short-term investments with current ratio of 1.73, providing significant operational flexibility • Low leverage: Debt-to-equity ratio of only 0.12, indicating conservative capital structure with minimal solvency risk • Strong cash generation: Operating cash flow of $417 million and free cash flow of $368 million in 2024, demonstrating robust cash conversion • Valuation metrics: Trading at 26.4x P/E ratio and 17.1x EV/EBITDA, reflecting premium valuation but supported by consistent growth and profitability • Consistent profitability: ROE of 27% and stable margins across business cycles indicate strong operational execution • Diversification benefit: Two unrelated business segments provide some protection against sector-specific downturns, though both are labor-intensive
Recent development
Over the past several years, Chemed has pursued distinct strategic initiatives across its two business segments. VITAS Healthcare has focused on aggressive expansion through both organic growth and strategic acquisitions, most notably the $85 million acquisition of Covenant Health in April 2024, which significantly expanded the company's presence in targeted markets. The division has also invested heavily in workforce development, implementing comprehensive retention and hiring programs that added over 780 licensed healthcare professionals since 2022. VITAS has expanded geographically by obtaining Certificates of Need in new Florida counties (Pasco and Marion) and has strategically shifted toward hospital-based admissions to manage Medicare cap exposure while maintaining growth. Roto-Rooter has undergone operational restructuring to address declining performance, particularly in residential markets. The company replaced its search engine marketing firm in 2024 to improve digital customer acquisition and has implemented focused sales strategies for commercial customers. Management has emphasized improving response times for water restoration services and has adjusted pricing strategies for excavation work. Despite these efforts, Roto-Rooter continues to face challenges from reduced call volumes and increased competition in digital marketing channels. Both segments have navigated significant labor market challenges, with VITAS achieving eleven consecutive quarters of clinical workforce growth while Roto-Rooter has focused on technician retention and training programs. The company has maintained its programmatic share repurchase strategy while preserving financial flexibility for strategic acquisitions, particularly in the hospice sector where consolidation opportunities remain attractive.
CHE company profile · for informational purposes only — not investment advice.
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