📊 CHE Key Takeaways
Investment Thesis
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.
CHE 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
CHE 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
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
CHE Financial Metrics
💡 AI Analyst Insight
CHEMED CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CHE Profitability Ratios
CHE vs Default Sector
How CHEMED CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CHE Balance Sheet & Liquidity
CHE 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 Growth Metrics (YoY)
CHE Quarterly 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.
CHE Capital Allocation
CHE SEC Filings
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 an AI rating of STRONG BUY with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHE's 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.
What are the risks of investing in CHE?
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.
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?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.