Added to YB: 2026-03-27
Pitch date: 2026-03-25
CHE [neutral]
Chemed Corporation
Author Info
Colubeat Investment Desk writes and shares analysis on exceptional companies with sustainable moats. Sometimes undervalued, always high quality. Sign up for the newsletter.
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
N/A
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.
Read full article (17 min)