Chemed Corporation (Chemed) provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. The company provides plumbing, drain cleaning, exc…
Analysis
Quality compounder
Chemed Corporation earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is fair. The owner-earnings multiple stands at 21.8×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 7% a year, against analyst forecasts of 12%. The price, in other words, assumes less than the experts do.
Growth is tepid; the safety picture is sturdy. The company scores 12/20 on our value-creation score: creating some value.
Flags to be aware of: A large part of the company's book value is the price paid for past acquisitions. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202375
45
2023202420252026
All-time high
86
Jan 2024
All-time low
32
Nov 2024
Average rank
55
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
11
3
3
19
Price/Earnings
50
35
27
28
Price/Book
15
10
3
17
Dividend Yield
91
71
71
72
Value (overall)
40
31
25
24
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.