Chemed Stock Analysis, Valuation (NYSE:CHE)

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$254.56 $0.72 (0.28%) CHE stock closing price Feb 16, 2018 (Closing)
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Chemed
Updated on : Feb 16, 2018
previous close
CHE 254.6 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
3.1%
Operating Profit
Operating Margin:
6.7%
Sector Average:
-5.2%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$90.7M
Net Income:
$35.4M
Dividend Yield
CHE dividend yield:
0.42%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Long Term Growth
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CHE PS :
2.5
Industry PS :
6.1
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.6%
Return on Equity:
15.5%
Free Cash Flow Margin:
16.4%
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Chemed Stock Analysis

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Investors can watch the Amigobulls Chemed stock analysis video here. This is our analyst opinion covering the buy and sell arguments for CHE stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Chemed Corporation Stock Rating 3.7/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CHE stock analysis. We compare Chemed valuation with its sector peers to gauge relative attractiveness of CHE stock. Chemed stock rating is our opinion about the business fundamentals of the company.

Should you buy CHE stock?

  • The TTM operating margin was good at 6.8% for Chemed.
  • Net margins stood at a healthy 5.9% (average) for Chemed in the Trailing Twelve Months.
  • When compared with the Medical-Outpatient-Home care industry average PS ratio of 6.1, the price-to-sales ratio of 2.4 for CHE stock is attractive.
  • Chemed's return on invested capital of 15.7% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Chemed at 19.7%.

Should you sell CHE stock?

  • Over the last 5 years, the company registered a poor revenue growth of 3.1%.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -9.9%.

Comments on this video and Chemed stock

Amigobulls Chemed stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of CHE stock and helps investors in making good buy and sell decision.

Chemed revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.