Chemed Corporation (CHE) Stock

Chemed Corporation (CHE) is a Healthcare stock trading at $544.46 (as of 2026-08-25), with a market capitalization of $7.12B and a trailing P/E of 25.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Chemed Corporation provides hospice and palliative care services to patients in the United States through its VITAS operations and a network of physicians, nurses, home health aides, social workers, clergy, and volunteers. It also provides plumbing and related services in its Roto-Rooter segment through company-owned branches, independent contractors, and franchisees.

Understand Chemed Corporation: how it makes money

Chemed runs two unrelated businesses: VITAS delivers hospice and palliative care paid by Medicare and insurers, while Roto-Rooter bills homeowners for plumbing and drain service. The stock blends a demographic-driven healthcare model with a cyclical home-services franchise network.

Medicare per-diem reimbursement for each hospice patient day is the structural profit engine; an aging population feeds volume, while Roto-Rooter adds a lower-margin, cyclical cash-flow layer.

Business quality (Solid): Solid grade; 33% ROE and 13% operating margin reflect VITAS's regulated hospice earnings buffering Roto-Rooter's thinner home-services margins.

Valuation: At 26× earnings, CHE trades in line with the Healthcare Services average (25×).

Bull case

  • Hospice volumes accelerating: Management raised full-year VITAS ADC (average daily census) growth guidance to 5.75% to 6.25%, signaling continued demand tailwinds as the U.S. population ages.
  • VITAS margins expanding: Full-year VITAS EBITDA margin guidance rose to 19% to 19.5% (excluding Medicare CAP), indicating operational leverage is still working in the hospice business.

Bear case

  • Stay length eroding per-patient revenue: VITAS average length of stay fell to 101.2 days from 137.1 days, a sharp contraction that directly cuts Medicare per-diem dollars even as patient counts grow.
  • Roto-Rooter demand softening: Total Roto-Rooter leads declined 1.6% year over year and water-restoration revenue fell 6.7%, pointing to weaker discretionary home-services demand in the segment.
Valuation — source: SEC EDGAR (first-party)
Price$544.46
Market Cap$7.12B
P/E Ratio25.9
EV / EBITDA17.4
Price / Book8.57
Price / Sales2.74
FCF Yield4.5%
DCF Value (model)$345.50
DCF Upside vs Price-36.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.53B
Net Margin10.5%
Revenue Growth (YoY)8.8%
EPS Growth (YoY)42.8%
FCF Growth (YoY)-43.6%
Financial Health — source: SEC EDGAR
Altman Z-Score13.12 (safe)
Valuation vs Sector & Industry
Stock P/E25.9
Sector P/E (Healthcare)21.9
Industry P/E (Healthcare Services)25.4
vs Sector18.0%
vs Industry1.8%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($629.92M)
Institutional Holders Tracked10
Congressional Trades (recent)6
Company
SectorHealthcare
IndustryHealthcare Services
CEOKevin J. McNamara
Employees15,695
CountryUS
IPO Date1973-05-03

Related Companies (Healthcare Services; 8 comparable companies)

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  • BrightSpring Health Services, Inc. Common Stock (BTSG)
  • Concentra Group Holdings Parent, Inc. (CON)
  • Privia Health Group, Inc. (PRVA)
  • Brookdale Senior Living Inc. (BKD)
CHE earnings history · CHE institutional & insider holders · CHE KPIs & operating metrics · CHE financials · CHE investor presentations & press releases · CHE SEC filings · CHE peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-25.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.