| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 42 | 25.8x | 17.3x | Around median | |
Growth | 41 | 3.3% | 7.1% | Around median | |
Quality | 81 | 20.7% | 4.5% | Top tier | |
Safety | 89 | 0.6x | 2.6x | Top tier | |
Capital Return | 84 | 0.46% | 0.06% | Top tier | |
Momentum | 87 | 13.4% | -1.6% | Top tier | |
Sentiment | 33 | 3 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
56% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Chemed Corporation operates through two distinct service businesses: VITAS Healthcare for palliative and hospice care, and Roto-Rooter for plumbing, drain cleaning, excavation, and water damage restoration services. In Q2 fiscal 2026, VITAS generated net revenue of $443.3 million, representing approximately 65.8% of Chemed’s consolidated revenue, while Roto-Rooter’s operations accounted for the remaining approximately 34.2%. VITAS’s growth depends on increases in admissions, days of care, and Medicare reimbursement rates, while Roto-Rooter depends on residential and commercial services, ancillary services, and the acquisition of franchise territories.
In Q2 fiscal 2026, Chemed’s revenue was approximately $673.3 million, up 8.8% from the comparable period, while gross profit was $221.5 million, with a gross margin of approximately 32.9%. Net income was $67.7 million, representing a net margin of approximately 10.1% and earnings per share of $5.13, while adjusted diluted earnings per share increased 41.9% year over year. Cash flow from operations exceeded $173 million during the quarter.
VITAS led operating performance with revenue of $443.3 million, up 11.9%, and adjusted EBITDA before the Medicare cap impact of $80.6 million, up 20.6%, with an 18.2% margin. At Roto-Rooter, branch commercial revenue was $56.8 million, up 6.8%, and residential revenue was $159 million, up 1.7%, while adjusted EBITDA remained nearly flat at $48.5 million and its margin declined 77 basis points to 21.1%. On a trailing twelve-month basis in fiscal 2026, the company recorded revenue of $2.6 billion and net income of $275 million.
Analyst consensus rates CHE as “Neutral,” with an average price target of $554, within a wide range of $475 to $633. The average target is only three dollars below the top of the 52-week range of $557, while the highest target exceeds that peak and the lowest target falls within the 52-week range of $365.21–$557. This dispersion reflects the market’s balance between accelerating growth at VITAS and marketing and margin pressures at Roto-Rooter. The data does not provide a valid comparable earnings multiple, so CHE’s valuation here is based on the target range and the Neutral consensus rather than a specific earnings multiple.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The primary driver is VITAS, which recorded revenue of $443.3 million in Q2 fiscal 2026, up 11.9%. Average daily census increased 6.1% to 23,687 patients, and admissions increased 9% to 19,125. Based on this performance, Chemed raised its fiscal 2026 VITAS revenue growth outlook before the Medicare cap impact to 8.25%–9.25%.
The situation improved materially in Q2 fiscal 2026, as the consolidated Florida program recorded no billing limitation, compared with $16.4 million in the comparable quarter of fiscal 2025. The program added $8.9 million to its cap cushion during the quarter, and management does not expect a billing limitation for it during fiscal 2026. However, Chemed still expects total billing limitations of $7 million for fiscal 2026 and recorded $500 thousand in the quarter, primarily related to improved admissions in California.
The share of paid leads increased to 59% in Q2 fiscal 2026, compared with 54% in the comparable period, after free leads declined 13.1%. This increased marketing spending by approximately $3.1 million, while adjusted EBITDA remained nearly flat at $48.5 million. As a result, the adjusted EBITDA margin declined 77 basis points to 21.1%, despite a 135-basis-point improvement in gross margin to 50.4%.
Automated analysis for informational purposes only — not investment advice.
Chemed spent approximately $33.5 million during the first half of fiscal 2026 to reacquire four franchises in strategic locations. This included the purchase of a South Texas franchise territory and assets, including Corpus Christi, for approximately $12 million in June 2026. Management does not expect a material contribution from this transaction in the second half of fiscal 2026, but considers the territory a growth opportunity for fiscal 2027 and beyond.
Management expects adjusted diluted earnings per share of between $25.00 and $25.75 for fiscal 2026, excluding specified items that include non-cash stock option expenses and litigation costs. The midpoint of the range represents growth of 7.8% compared with adjusted earnings per share of $20.21 in fiscal 2025. The outlook assumes an effective tax rate of 24.5% and an average diluted share count of 13.5 million shares.
Analyst consensus is “Neutral,” with an average price target of $554, a low target of $475, and a high target of $633. The average target is very close to the top of the 52-week range of $557, while the stock’s full range extends from $365.21 to $557. The wide target range reflects differing estimates regarding the sustainability of VITAS’s growth and Roto-Rooter’s ability to offset higher marketing costs and margin pressure.