Added to YB: 2026-03-27
Pitch date: 2026-03-25
CHE [neutral]
Chemed Corporation
-0.46%
current return
Author Info
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Company Info
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.
Market Cap
$5.1B
Pitch Price
$373.66
Price Target
N/A
Dividend
0.64%
EV/EBITDA
11.04
P/E
20.39
EV/Sales
2.06
Sector
Health Care Providers and Services
Category
value
CHEMED CORPORATION (NYSE: $CHE)
CHE (overview): 2 subsidiaries: VITAS (largest US hospice, 95% Medicare-funded) & Roto-Rooter (largest NA plumbing). Q4 EPS $6.42 missed $7.07 est; stock -15%. 2026 guide $23.75 EPS, 6.5% below consensus. VITAS cap penalty $27.2M (from $8.4M), margins 16.7% vs 18.7%; mgmt targets $9.5M 2026. RR margins fell 29%→22.8% on Google lead costs & AI insurance claim rejections. Zero debt, $74.5M cash, $325M FCF. 19yr 19.9% EPS CAGR driven by buybacks. Base case 9.7% IRR at $393; author waits for $340-370 (14-15x P/E) for adequate margin of safety. Key Q1 watch: cap <$9.5M, RR rev positive YoY.
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