📊 CHE Key Takeaways
Is Chemed Corp. (CHE) a Good Investment?
Chemed Corp demonstrates solid financial discipline with exceptional debt management (Debt/Equity 0.11x, Interest Coverage 165.2x) and strong free cash flow generation ($71.1M, 10.8% FCF margin), but is constrained by poor capital efficiency (ROE 7.8%, ROA 4.3%), deteriorating shareholder returns (EPS -7.8% YoY), and concerning liquidity metrics (Current Ratio 0.85x). The company is financially stable but provides limited shareholder value in its current operational form.
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 balance sheet strength with minimal leverage (Debt/Equity 0.11x) and fortress-like interest coverage (165.2x)
- Robust free cash flow generation of $71.1M representing 10.8% FCF margin relative to revenue
- Stable operating margins of 12.9% and net margins of 10.1% demonstrate profitability resilience in home health care services
- 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
- Liquidity concerns with Current Ratio (0.85x) and Quick Ratio (0.83x) both below 1.0, indicating potential working capital constraints
- Deteriorating shareholder returns with diluted EPS declining 7.8% YoY despite 4.1% revenue growth, signaling cost pressures or inefficient capital allocation
- Chronically poor capital efficiency with ROE of only 7.8% and ROA of 4.3%, indicating underutilization of shareholder capital relative to asset base
- 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
- Current Ratio and Cash position trending - monitor working capital management for ability to meet near-term obligations
- Diluted EPS trajectory and margin compression - assess whether cost pressures persist or stabilize
- Return on Equity and asset turnover - determine if capital efficiency improvements materialize
- 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
The current ratio below 1.0x warrants monitoring of short-term liquidity.
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. has mixed fundamental signals 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 (HOLD) and ChatGPT (BUY) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHE's key strengths?
Claude: Exceptional balance sheet strength with minimal leverage (Debt/Equity 0.11x) and fortress-like interest coverage (165.2x). Robust free cash flow generation of $71.1M representing 10.8% FCF margin relative to revenue. 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: Liquidity concerns with Current Ratio (0.85x) and Quick Ratio (0.83x) both below 1.0, indicating potential working capital constraints. Deteriorating shareholder returns with diluted EPS declining 7.8% YoY despite 4.1% revenue growth, signaling cost pressures or inefficient capital allocation. 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 $657.5M.
Does CHE pay dividends?
Chemed Corp. pays dividends, with $8.2M 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 $4.84.
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 May 2026, Chemed Corp. has a BUY rating with 73% 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 7.8% (sector avg: 16%), net margin of 10.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
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 $88.2M, with capital expenditures of $17.1M. FCF margin is 10.8%.
How does CHE compare to other Services stocks?
Vs Services sector averages: Net margin 10.1% (avg: 10%), ROE 7.8% (avg: 16%), current ratio 0.85 (avg: 1.5).