
Chemed Corporation, the parent company of VITAS Healthcare, has a long history of providing quality hospice and palliative care services.
Chemed's stock has performed well over the years, with a strong track record of growth and stability.
The company's investor relations efforts have been key to its success, with a focus on transparency and communication with shareholders.
Chemed's management team has a proven track record of making smart business decisions that benefit both the company and its investors.
Chemed's Retained Earnings
Chemed has a low three-year median payout ratio of 8.4%, meaning the company keeps the remaining 92% of profits.
This suggests that Chemed is retaining more of its earnings, which should be reflected in its earnings growth number.
However, the company's earnings growth is actually lower than the industry average, despite its impressive ROE.
A low growth rate when returns are high could be the result of low earnings retention or poor allocation of capital.

Chemed's management is determined to pay dividends, even if it means little to no earnings growth, as evident from the company's dividend payments over the past ten years.
This retention strategy may not be yielding the expected results, at least not in terms of earnings growth.
Despite this, Chemed's stock has done incredibly well, with a 107% return over the last five years.
Chemed Corp Overview
Chemed Corp is a leading provider of home healthcare services in the United States, with a rich history dating back to 1984.
The company was founded by Jack Barrett, who had a vision to provide high-quality home healthcare services to patients in need.
Chemed Corp has since grown to become one of the largest home healthcare companies in the country, with a strong presence in the Midwest.
Headquartered in Cincinnati, Ohio, the company operates under two main brands: VITAS Healthcare and VITAS Innovative Hospice Care.
Chemed Corp has a strong commitment to innovation, investing in cutting-edge technology to improve patient care and outcomes.
The company's focus on innovation has led to the development of new programs and services, such as its VITAS Hospice Care program, which provides comprehensive care to patients with life-limiting illnesses.
Chemed Corp is a publicly traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol CHE.
As a publicly traded company, Chemed Corp is committed to transparency and accountability, providing regular updates to investors and stakeholders.
The company's leadership team is comprised of experienced professionals with a deep understanding of the home healthcare industry.
Ratings
Chemed Corporation has received a buy rating from TipRanks, citing the company's resilience in the Vitas segment and consumer spending. This suggests that analysts believe the company's stock has potential for growth.
Chemed Corporation's fundamentals have been questioned by some analysts, who argue that the stock's recent weakness may be a sign of underlying issues. However, others believe that the company's undervaluation makes it an attractive investment opportunity.
According to Simply Wall St, Chemed Corporation's share price is not quite adding up, implying that the stock may be undervalued. This is supported by Yahoo Finance, which suggests that the company's stock is 31% undervalued.
Here are some key ratings and opinions from analysts:
- TipRanks: Buy rating due to resilience in Vitas segment and consumer spending
- Simply Wall St: Share price not quite adding up, implying undervaluation
- Yahoo Finance: 31% undervaluation
- Zacks: Questions Chemed Corporation's fundamentals, but also suggests it may be an attractive investment opportunity
Return on Capital Employed (ROCE)
Chemed's Return on Capital Employed (ROCE) is a key metric to understand its ability to generate profits from the capital it employs. Chemed has a stable ROCE of 25% over the last five years, which is a pretty impressive figure.
The company has employed 58% more capital in the last five years, and the returns on that capital have remained stable at 25%. This combination is actually pretty appealing because it means the business can consistently put money to work and generate these high returns.
High returns are a key ingredient to strong performance, and Chemed's ROCE is an attractive 25%. If the company can keep this up, we'd be very optimistic about its future.
Chemed's ROCE is not only impressive, but it's also higher than the industry average. The company's ROCE is 12 percentage points higher than the industry average of 13%, which is a significant difference.
The stock has done incredibly well with a 107% return over the last five years, so long term investors are no doubt ecstatic with that result.
Sources
- https://simplywall.st/stocks/us/healthcare/nyse-che/chemed/news/chemed-corporations-nyseche-has-had-a-decent-run-on-the-stoc
- https://www.alphaspread.com/security/nyse/che/investor-relations
- https://www.stocktitan.net/news/CHE/page-4.html
- https://www.futunn.com/en/stock/CHE-US/news/news
- https://www.moomoo.com/news/post/32198858/chemed-nyse-che-is-reinvesting-to-multiply-in-value
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