Bullish Thesis on Chemed Corporation Highlights Investment Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy CHE?
Source: Yahoo Finance
- Company Overview: Chemed Corporation consists of two unrelated businesses, VITAS and Roto-Rooter, generating approximately $2.4 billion in revenue and $370 million in operating income, showcasing strong free cash flow and over 20% return on invested capital, despite a recent one-third drop in stock price.
- Market Challenges: VITAS has faced earnings guidance cuts due to Medicare cap adjustments and weaker patient admissions, yet the underlying hospice market remains attractive, supported by favorable demographics and Medicare incentives, positioning VITAS for a return to mid- to high-single-digit revenue growth.
- Competitive Landscape: Roto-Rooter encounters persistent headwinds from post-COVID normalization and rising digital marketing costs, which may limit profitability going forward, although it continues to be a significant cash generator.
- Investment Opportunity: Current valuation levels suggest the market is overly pessimistic about VITAS's future growth; however, the author believes Chemed offers a reasonable risk/reward profile driven by recovering hospice fundamentals and strong free cash flow per share.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CHE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CHE
Wall Street analysts forecast CHE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHE is 574.25 USD with a low forecast of 550.00 USD and a high forecast of 595.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 453.400
Low
550.00
Averages
574.25
High
595.00
Current: 453.400
Low
550.00
Averages
574.25
High
595.00
About CHE
Chemed Corporation is engaged in purchasing, operating, and divesting subsidiaries in diverse business activities. The Company's segment includes VITAS and the Roto-Rooter. The VITAS segment provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. It provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. The Roto-Rooter segment provides plumbing, drain cleaning, excavation, water restoration and other related services to residential and commercial customers. The Roto-Rooter services are provided through a network of Company-owned branches, independent contractors and franchisees. The Company's water restoration services involve the remediation of water and humidity after a flood and are provided to both commercial and residential customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bullish Thesis on Chemed Corporation Highlights Investment Potential
- Company Overview: Chemed Corporation consists of two unrelated businesses, VITAS and Roto-Rooter, generating approximately $2.4 billion in revenue and $370 million in operating income, showcasing strong free cash flow and over 20% return on invested capital, despite a recent one-third drop in stock price.
- Market Challenges: VITAS has faced earnings guidance cuts due to Medicare cap adjustments and weaker patient admissions, yet the underlying hospice market remains attractive, supported by favorable demographics and Medicare incentives, positioning VITAS for a return to mid- to high-single-digit revenue growth.
- Competitive Landscape: Roto-Rooter encounters persistent headwinds from post-COVID normalization and rising digital marketing costs, which may limit profitability going forward, although it continues to be a significant cash generator.
- Investment Opportunity: Current valuation levels suggest the market is overly pessimistic about VITAS's future growth; however, the author believes Chemed offers a reasonable risk/reward profile driven by recovering hospice fundamentals and strong free cash flow per share.
See More
Chemtrade Logistics Declares $0.06 Cash Distribution for January 2026
- Cash Distribution Announcement: Chemtrade Logistics has declared a cash distribution of $0.06 per unit for January 2026, payable on February 27, 2026, indicating the company's ongoing ability to return value to shareholders and boosting investor confidence.
- Record Date Set: The record date for this distribution is January 30, 2026, ensuring that all investors holding units on this date will receive the distribution, reflecting the company's commitment to shareholder rights.
- Tax Requirements Explained: Non-resident unit holders will be required to pay all applicable withholding taxes, indicating the company's compliance with international investor regulations while also reminding investors to consider tax implications.
- Investor Relations Contact: Vice President Endri Leno has provided contact information for investor relations, demonstrating Chemtrade's commitment to transparent communication and aiming to enhance engagement and trust with investors.
See More
Chemtrade Logistics (CHE.UN) to Release 2025 Financial Results on February 25, 2026
- Earnings Release Schedule: Chemtrade Logistics Income Fund will release its financial results for the year ended December 31, 2025, on February 25, 2026, after market close, providing insights into the company's annual performance.
- Conference Call Details: A conference call will be held on February 26, 2026, at 10:00 a.m. to review the financial results, offering investors a detailed understanding of performance changes.
- Webcast Availability: The conference call will be webcast live, allowing global investors to participate in real-time and access the latest information, thereby enhancing transparency.
- Market Reaction Expectations: The earnings release and conference call may influence investor expectations regarding Chemtrade's future performance, potentially impacting its stock price.
See More
Chemed to Release Q4 2025 Financial Results on February 25, 2026
- Earnings Release Schedule: Chemed Corporation will announce its financial results for the fourth quarter ended December 31, 2025, on February 25, 2026, after the NYSE close, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call on February 26, 2026, at 10 a.m. ET to discuss quarterly results and business updates, aiming to bolster investor confidence in the company's future performance.
- Investor Participation Options: Participants can access the live webcast of the conference call through the investor relations section of Chemed's website, demonstrating Chemed's focus on accessibility and investor engagement.
- Replay Availability: A taped replay of the conference call will be available approximately two hours after its conclusion, ensuring that investors who cannot attend live can still access critical information, reflecting the company's ongoing commitment to investor service.
See More
Chemed Corporation Schedules Q4 2025 Earnings Release for February 25, 2026
- Earnings Release Schedule: Chemed Corporation will release its financial results for Q4 2025 on February 25, 2026, after the NYSE closes, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call on February 26, 2026, at 10 a.m. ET to discuss quarterly results and provide business updates, enhancing investor confidence in the company's future direction.
- Investor Participation Method: Participants can access the live webcast through the investor relations section of Chemed's website or register for the teleconference to receive a personalized dial-in code, ensuring smooth information dissemination.
- Replay Availability: A taped replay of the conference call will be available approximately two hours after its conclusion, further enhancing investors' understanding of the company's developments and reflecting Chemed's ongoing commitment to investor service.
See More
Chemtrade Logistics Declares $0.0575 Cash Distribution per Unit for December 2025
- Cash Distribution Announcement: Chemtrade Logistics has declared a cash distribution of $0.0575 per unit for December 2025, payable on January 30, 2026, to unitholders of record as of December 31, 2025, which aims to enhance investor confidence and maintain a stable income stream.
- Tax Requirements Clarification: Non-resident unit holders will be required to pay all withholding taxes related to income distributions by the Fund, which may impact their actual returns, necessitating advance tax planning to avoid potential losses.
- Investor Relations Communication: Chemtrade's Vice President, Endri Leno, has provided contact information for investor relations, demonstrating the company's commitment to transparency and investor communication, aimed at bolstering market confidence in its financial health.
- Future Outlook: The announcement of this cash distribution reflects Chemtrade's commitment to future financial stability, as it strives to provide ongoing returns to investors despite market fluctuations.
See More
Bullish Thesis on Chemed Corporation Highlights Investment Potential
- Company Overview: Chemed Corporation consists of two unrelated businesses, VITAS and Roto-Rooter, generating approximately $2.4 billion in revenue and $370 million in operating income, showcasing strong free cash flow and over 20% return on invested capital, despite a recent one-third drop in stock price.
- Market Challenges: VITAS has faced earnings guidance cuts due to Medicare cap adjustments and weaker patient admissions, yet the underlying hospice market remains attractive, supported by favorable demographics and Medicare incentives, positioning VITAS for a return to mid- to high-single-digit revenue growth.
- Competitive Landscape: Roto-Rooter encounters persistent headwinds from post-COVID normalization and rising digital marketing costs, which may limit profitability going forward, although it continues to be a significant cash generator.
- Investment Opportunity: Current valuation levels suggest the market is overly pessimistic about VITAS's future growth; however, the author believes Chemed offers a reasonable risk/reward profile driven by recovering hospice fundamentals and strong free cash flow per share.
See More
Chemtrade Logistics Declares $0.06 Cash Distribution for January 2026
- Cash Distribution Announcement: Chemtrade Logistics has declared a cash distribution of $0.06 per unit for January 2026, payable on February 27, 2026, indicating the company's ongoing ability to return value to shareholders and boosting investor confidence.
- Record Date Set: The record date for this distribution is January 30, 2026, ensuring that all investors holding units on this date will receive the distribution, reflecting the company's commitment to shareholder rights.
- Tax Requirements Explained: Non-resident unit holders will be required to pay all applicable withholding taxes, indicating the company's compliance with international investor regulations while also reminding investors to consider tax implications.
- Investor Relations Contact: Vice President Endri Leno has provided contact information for investor relations, demonstrating Chemtrade's commitment to transparent communication and aiming to enhance engagement and trust with investors.
See More
Chemtrade Logistics (CHE.UN) to Release 2025 Financial Results on February 25, 2026
- Earnings Release Schedule: Chemtrade Logistics Income Fund will release its financial results for the year ended December 31, 2025, on February 25, 2026, after market close, providing insights into the company's annual performance.
- Conference Call Details: A conference call will be held on February 26, 2026, at 10:00 a.m. to review the financial results, offering investors a detailed understanding of performance changes.
- Webcast Availability: The conference call will be webcast live, allowing global investors to participate in real-time and access the latest information, thereby enhancing transparency.
- Market Reaction Expectations: The earnings release and conference call may influence investor expectations regarding Chemtrade's future performance, potentially impacting its stock price.
See More
Chemed to Release Q4 2025 Financial Results on February 25, 2026
- Earnings Release Schedule: Chemed Corporation will announce its financial results for the fourth quarter ended December 31, 2025, on February 25, 2026, after the NYSE close, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call on February 26, 2026, at 10 a.m. ET to discuss quarterly results and business updates, aiming to bolster investor confidence in the company's future performance.
- Investor Participation Options: Participants can access the live webcast of the conference call through the investor relations section of Chemed's website, demonstrating Chemed's focus on accessibility and investor engagement.
- Replay Availability: A taped replay of the conference call will be available approximately two hours after its conclusion, ensuring that investors who cannot attend live can still access critical information, reflecting the company's ongoing commitment to investor service.
See More
Chemed Corporation Schedules Q4 2025 Earnings Release for February 25, 2026
- Earnings Release Schedule: Chemed Corporation will release its financial results for Q4 2025 on February 25, 2026, after the NYSE closes, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call on February 26, 2026, at 10 a.m. ET to discuss quarterly results and provide business updates, enhancing investor confidence in the company's future direction.
- Investor Participation Method: Participants can access the live webcast through the investor relations section of Chemed's website or register for the teleconference to receive a personalized dial-in code, ensuring smooth information dissemination.
- Replay Availability: A taped replay of the conference call will be available approximately two hours after its conclusion, further enhancing investors' understanding of the company's developments and reflecting Chemed's ongoing commitment to investor service.
See More
Chemtrade Logistics Declares $0.0575 Cash Distribution per Unit for December 2025
- Cash Distribution Announcement: Chemtrade Logistics has declared a cash distribution of $0.0575 per unit for December 2025, payable on January 30, 2026, to unitholders of record as of December 31, 2025, which aims to enhance investor confidence and maintain a stable income stream.
- Tax Requirements Clarification: Non-resident unit holders will be required to pay all withholding taxes related to income distributions by the Fund, which may impact their actual returns, necessitating advance tax planning to avoid potential losses.
- Investor Relations Communication: Chemtrade's Vice President, Endri Leno, has provided contact information for investor relations, demonstrating the company's commitment to transparency and investor communication, aimed at bolstering market confidence in its financial health.
- Future Outlook: The announcement of this cash distribution reflects Chemtrade's commitment to future financial stability, as it strives to provide ongoing returns to investors despite market fluctuations.
See More
