Chemed Corporation (CHE)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Chemed Corporation (CHE) trades at $480.04 with AI Score 87/100 (Grade A+). Chemed Corporation operates through two segments: VITAS Healthcare, a leading provider of hospice care, and Roto-Rooter, a provider of plumbing and drain cleaning services. Market cap: $6.37B, Sector: Healthcare.
Price live · AI analysis from May 4, 2026CHE stock analysis for 2026: Analysts have set a consensus price target of $475.00 for Chemed Corporation, suggesting 1.0% downside from the current price of $480.04. The AI MoonshotScore is 87/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
CHE: 1/1 perspectives are bullish.
How is this calculated? →Chemed Corporation (CHE) Healthcare & Pipeline Overview
Chemed Corporation, with a market cap of $6.37B, delivers hospice and palliative care via VITAS Healthcare, alongside plumbing and drain cleaning services through Roto-Rooter. Operating nationally, Chemed differentiates itself through its dual-segment strategy, blending healthcare with essential home services, and currently has a P/E ratio of 20.9.
What Is the Investment Thesis for CHE?
Chemed Corporation, with a market capitalization of $6.37B, presents a compelling investment case based on its dual-segment strategy and strong market positions. The VITAS Healthcare segment benefits from the increasing demand for hospice care driven by an aging population and a growing preference for end-of-life care at home. Roto-Rooter provides stability and consistent revenue through its essential plumbing and drain cleaning services. Key value drivers include continued expansion of VITAS into underserved markets, operational efficiencies within Roto-Rooter, and strategic capital allocation. The company’s profit margin of 10.2% and gross margin of 30.3% indicate solid profitability. A potential catalyst is the ongoing demographic shift favoring hospice care. However, risks include regulatory changes in healthcare and economic downturns affecting home services. The dividend yield of 0.54% offers a modest income component.
Based on FMP financials and quantitative analysis
CHE Key Highlights
- Market Cap of $6.37B reflects Chemed's significant presence in the healthcare and home services sectors.
- P/E ratio of 20.9 indicates investor confidence in Chemed's earnings potential compared to the industry average.
- Profit Margin of 10.2% demonstrates Chemed's ability to generate profits from its revenue streams.
- Gross Margin of 30.3% highlights the efficiency of Chemed's operations in both VITAS Healthcare and Roto-Rooter.
- Beta of 0.48 suggests that Chemed's stock price is less volatile than the overall market, making it a relatively stable investment.
Who Are CHE's Competitors?
CHE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| DVA DaVita Inc. | $233.77 | -0.49% | $15.00B | 88 |
| BTSG BrightSpring Health Services, Inc. | $70.56 | +2.22% | $13.85B | 90 |
| HSIC Henry Schein, Inc. | $86.62 | +0.22% | $9.87B | 71 |
| ATR AptarGroup, Inc. | $126.69 | -0.23% | $8.09B | 75 |
| NUVL Nuvalent, Inc. | $123.73 | -0.00% | $9.10B | 57 |
| HWAIF Healwell AI Inc. | $0.53 | -3.52% | $160.75M | 65 |
| ASSF Assisted 4 Living, Inc. | $1.00 | +0.00% | $45.35M | 63 |
| FTRP Field Trip Health Ltd. | $0.84 | +1.07% | $9.81M | 62 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CHE's Key Strengths?
- Strong market position in both hospice care and plumbing services.
- Diversified revenue streams through VITAS Healthcare and Roto-Rooter.
- Established brand reputation and customer loyalty.
- Experienced management team with a proven track record.
What Are CHE's Weaknesses?
- Exposure to regulatory changes in the healthcare industry.
- Dependence on Medicare and Medicaid reimbursement for VITAS Healthcare.
- Potential for economic downturns to affect demand for Roto-Rooter's services.
- Competition from other hospice care providers and plumbing service companies.
What Could Drive CHE Stock Higher?
- Aging population driving increased demand for hospice care services provided by VITAS Healthcare.
- Continued expansion of Roto-Rooter's service offerings and geographic reach.
- Potential for strategic acquisitions to expand Chemed's market presence.
- Leveraging technology to improve operational efficiency and customer service in both segments.
What Are the Key Risks for CHE?
- Changes in government regulations affecting hospice care reimbursement rates.
- Increased competition from other healthcare providers and plumbing service companies.
- Economic downturns reducing demand for home services provided by Roto-Rooter.
- Potential for litigation and liability claims related to healthcare services.
What Are the Growth Opportunities for CHE?
- Expansion of VITAS Healthcare into Underserved Markets: VITAS Healthcare has the opportunity to expand its hospice services into geographic areas with limited access to palliative care. This expansion can be achieved through strategic acquisitions, partnerships with local healthcare providers, and the establishment of new facilities. The market for hospice care is expected to grow as the population ages, presenting a significant opportunity for VITAS to increase its market share and revenue. Timeline: Ongoing.
- Enhancement of Roto-Rooter's Service Offerings: Roto-Rooter can enhance its service offerings by incorporating new technologies and expanding into related home services, such as water restoration and excavation. This diversification can attract new customers and increase revenue per customer. The market for home services is large and fragmented, providing ample opportunities for Roto-Rooter to grow its business. Timeline: Ongoing.
- Strategic Acquisitions in the Healthcare Sector: Chemed can pursue strategic acquisitions of smaller hospice care providers to expand its geographic footprint and service capabilities. These acquisitions can provide access to new markets, technologies, and talent, enhancing Chemed's competitive position in the healthcare sector. The market for hospice care is consolidating, creating opportunities for Chemed to acquire attractive targets. Timeline: Ongoing.
- Leveraging Technology to Improve Efficiency: Chemed can leverage technology to improve the efficiency of its operations in both VITAS Healthcare and Roto-Rooter. This includes implementing electronic health records, using data analytics to optimize resource allocation, and developing mobile applications to improve customer service. The adoption of technology can reduce costs, improve quality, and enhance customer satisfaction. Timeline: Ongoing.
- Partnerships with Healthcare Systems: VITAS Healthcare can form partnerships with hospitals, nursing homes, and other healthcare systems to provide integrated hospice care services. These partnerships can provide access to a larger patient population and improve the coordination of care. The healthcare industry is increasingly focused on integrated care models, creating opportunities for VITAS to collaborate with other providers. Timeline: Ongoing.
What Opportunities Does CHE Have?
- Expansion into underserved markets for VITAS Healthcare.
- Enhancement of Roto-Rooter's service offerings.
- Strategic acquisitions of smaller hospice care providers.
- Leveraging technology to improve efficiency and customer service.
What Threats Does CHE Face?
- Changes in government regulations affecting hospice care reimbursement.
- Increased competition from other healthcare providers and plumbing service companies.
- Economic downturns reducing demand for home services.
- Potential for litigation and liability claims.
What Are CHE's Competitive Advantages?
- VITAS Healthcare has a strong brand reputation and established relationships with healthcare providers, creating a barrier to entry.
- Roto-Rooter has a well-known brand and a large network of company-owned branches and franchisees, providing a competitive advantage.
- The dual-segment strategy provides diversification and resilience, reducing the company's reliance on any single market.
What Does CHE Do?
Chemed Corporation, established in 1970 and headquartered in Cincinnati, Ohio, operates as a diversified services company with a primary focus on healthcare and home services. The company's VITAS Healthcare segment provides hospice and palliative care to patients facing life-limiting illnesses, utilizing a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers. VITAS delivers compassionate care, focusing on enhancing the quality of life for patients and their families across the United States. Complementing its healthcare operations, Chemed's Roto-Rooter segment offers plumbing, drain cleaning, excavation, water restoration, and related services to residential and commercial customers. Roto-Rooter operates through company-owned branches, independent contractors, and franchisees, providing essential home maintenance solutions. Chemed's dual-segment strategy allows it to participate in both the growing healthcare market and the stable home services sector, providing diversification and resilience. With a history spanning over five decades, Chemed has evolved into a leading provider in both hospice care and plumbing services, demonstrating its commitment to quality and customer satisfaction. The company's ability to manage and grow both segments underscores its operational expertise and strategic vision.
What Products and Services Does CHE Offer?
- Provides hospice and palliative care services through VITAS Healthcare.
- Offers plumbing and drain cleaning services through Roto-Rooter.
- Employs physicians, registered nurses, and home health aides to deliver hospice care.
- Utilizes company-owned branches, independent contractors, and franchisees for Roto-Rooter operations.
- Focuses on enhancing the quality of life for patients and their families.
- Provides essential home maintenance solutions to residential and commercial customers.
- Offers water restoration and excavation services as part of Roto-Rooter's offerings.
How Does CHE Make Money?
- VITAS Healthcare generates revenue through providing hospice and palliative care services, reimbursed by Medicare, Medicaid, and private insurance.
- Roto-Rooter generates revenue through providing plumbing, drain cleaning, and related services to residential and commercial customers.
- The company operates through a combination of company-owned branches, independent contractors, and franchisees.
What Industry Does CHE Operate In?
Chemed Corporation operates within the healthcare and home services industries. The healthcare sector, particularly hospice care, is experiencing growth due to the aging population and increasing preference for palliative care. The home services industry, including plumbing and drain cleaning, remains stable due to the essential nature of these services. Chemed's dual-segment strategy allows it to capitalize on both trends. Competitors in the healthcare space include DaVita Inc. (DVA) and BrightSpring Health Services, Inc. (BTSG), while the home services market is more fragmented. Chemed's Roto-Rooter holds a strong position in its market. The overall healthcare market is projected to continue its growth trajectory, driven by demographic shifts and technological advancements.
Who Are CHE's Key Customers?
- VITAS Healthcare serves patients with life-limiting illnesses and their families.
- Roto-Rooter serves residential customers requiring plumbing and drain cleaning services.
- Roto-Rooter serves commercial customers, including businesses and institutions, needing plumbing and drain cleaning services.
Chemed Corporation (CHE) Valuation Context
Valued at $6.37B, CHE is classified as a mid-cap stock. Relative to its peer group, CHE's quantitative score of 87/100 is above the peer average of 76/100.
ROE 25%Key Financial Metrics
Return on equity for Chemed Corporation stands at 25.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 16.9%, showing how much profit it generates from its asset base. CHE trades at a trailing price-to-earnings ratio of 20.90, roughly in line with the Healthcare sector average of ~23x. Its free cash flow yield is 6.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.85 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.1%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
Chemed Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 10.79 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Chemed Corporation revenue of about $2.69B for fiscal 2026, with EPS near $24.34. The estimate reflects 3 contributing analysts.
CHE Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Chemed's hospice segment is seen as a stable, growing market, similar to how healthcare performed during the 2008 crisis.
- Insiders buying shares lately sends a strong signal that those closest to the company see value, like when company executives bought back shares of Citigroup in 2009 to signal confidence.
- Community sentiment suggests a belief in the long-term demographic trends benefiting end-of-life care, mirroring the long-term growth narrative of companies like Amazon.
- Market perception views Chemed as a defensive stock, potentially outperforming during economic uncertainty, akin to how consumer staples held up during the dot-com bust.
Bear Case
- Increased regulatory scrutiny in the hospice industry is raising concerns about compliance costs, similar to the challenges faced by pharmaceutical companies with new drug approvals.
- Community discussions highlight worries about potential reimbursement cuts, which could impact revenue, much like how changes in government subsidies affected solar energy companies.
- Recent market developments suggest increased competition in the hospice space, potentially eroding market share, similar to the airline industry's constant battle for passengers.
- Negative social sentiment points to concerns about the company's growth strategy, with some questioning its ability to maintain its historical growth rate, reminiscent of concerns about GoPro's long-term viability after its initial hype.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
CHE Latest News
CHE Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CHE.
Price Targets
Consensus target: $475.00
CHE MoonshotScore
What does this score mean?
The MoonshotScore rates CHE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Kevin J. McNamara
CEO
Kevin J. McNamara serves as the CEO of Chemed Corporation, overseeing the company's strategic direction and operational performance. His career spans several decades in the healthcare and business services industries. McNamara's leadership is characterized by a focus on growth, innovation, and operational excellence. He has been instrumental in guiding Chemed's expansion in both the hospice care and plumbing services sectors. His background includes extensive experience in financial management and corporate strategy.
Track Record: Under Kevin J. McNamara's leadership, Chemed Corporation has achieved significant milestones, including consistent revenue growth and improved profitability. He has overseen the successful integration of acquisitions and the expansion of VITAS Healthcare into new markets. McNamara has also focused on leveraging technology to enhance operational efficiency and improve customer service. His strategic decisions have contributed to Chemed's strong market position and financial performance.
Common Questions About CHE (Healthcare)
What does Chemed Corporation do?
Chemed Corporation operates primarily through two segments: VITAS Healthcare and Roto-Rooter. VITAS Healthcare is a leading provider of hospice and palliative care services, offering compassionate care to patients with life-limiting illnesses. Roto-Rooter provides plumbing, drain cleaning, and related services to residential and commercial customers. The company's dual-segment strategy allows it to participate in both the growing healthcare market and the stable home services sector, providing diversification and resilience. Chemed focuses on delivering specialized healthcare services and essential home maintenance solutions across the United States.
What do analysts say about CHE stock?
Analyst consensus on Chemed Corporation (CHE) stock reflects a generally positive outlook, driven by the company's strong market positions in both hospice care and plumbing services. Key valuation metrics, such as the P/E ratio of 20.9, suggest that the stock is trading at a premium compared to some peers, reflecting investor confidence in its earnings potential. Growth considerations include the aging population driving demand for hospice care and the stability of the home services market. However, analysts also note potential risks, such as regulatory changes in healthcare and economic downturns affecting home services.
What are the main risks for CHE?
Chemed Corporation faces several key risks, including regulatory changes in the healthcare industry that could affect reimbursement rates for hospice care services. Increased competition from other healthcare providers and plumbing service companies could also impact market share and profitability. Economic downturns could reduce demand for Roto-Rooter's home services, affecting revenue. Additionally, the company faces potential litigation and liability claims related to healthcare services. These risks could impact Chemed's financial performance and stock price.
How does Chemed Corporation's VITAS segment navigate the complexities of healthcare regulations and compliance?
VITAS Healthcare navigates the complexities of healthcare regulations and compliance through a dedicated team of legal and regulatory experts. The company invests in ongoing training and education for its staff to ensure adherence to all applicable laws and regulations. VITAS also maintains robust internal controls and monitoring systems to detect and prevent non-compliance. Furthermore, the company actively engages with regulatory agencies and industry associations to stay informed about changes in the regulatory landscape and to advocate for policies that support high-quality hospice care. This proactive approach helps VITAS maintain its reputation for integrity and compliance.
What are the key growth opportunities for CHE in healthcare?
Chemed Corporation's key growth opportunities in healthcare primarily lie within its VITAS Healthcare segment. Expansion into underserved geographic markets with limited access to hospice care presents a significant opportunity to increase market share and revenue. Strategic acquisitions of smaller hospice care providers can provide access to new markets, technologies, and talent. Furthermore, forming partnerships with hospitals, nursing homes, and other healthcare systems can provide access to a larger patient population and improve the coordination of care. These growth opportunities are driven by the aging population and the increasing preference for end-of-life care at home.
What are the key factors to evaluate for CHE?
Chemed Corporation (CHE) holds an AI score of 87/100 (high). P/E: 20.9x vs the S&P 500's ~20-25x. Analysts target $475.00 (-1%). Not financial advice.
How frequently does CHE data refresh on this page?
CHE prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CHE's recent stock price performance?
Chemed Corporation (CHE) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong market position in both hospice care and plumbing services. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest available reporting period.