olivLaw · US equity research
Chemed Corporation CHE
Services-Home Health Care Services · SIC 8082 · Vertical: Services-Home Health Care Services (SIC 8082)
Chemed Corporation, through its VITAS subsidiary, is one of the largest hospice and palliative care providers in the US, and through Roto-Rooter it operates plumbing and drain cleaning services. In the second quarter of 2026 consolidated revenue rose 8.8% to 673.3 million USD, and the company raised its full-year 2026 guidance mainly on VITAS outperformance.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Chemed Corporation (CHE) stock was 533.77 USD (−2.71% on the day), with market capitalisation 6.9 bn USD, P/E 25.5 on diluted EPS of 20.91 USD over the last 12 months, dividend yield 0.47%, beta 0.20, 52-week range 368.59–552.72 USD. Latest reported quarter (Q3 2026): revenue of 690.9 m USD (+10.6% YoY), net income of 71.6 m USD (+11.5% YoY), diluted EPS 5.45 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 56.0
- strong (55–70)
- Bollinger (20, 2)
- 490.79 – 549.35
- in the upper half of the band · %B 0.73 · band width 11.3%
- SMA 50 / 200
- 514.41 / 464.48
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 7.87 / 5.20
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +4.7% | −1.1% | +5.8 pp | — |
| 3 months | −2.8% | −0.5% | −2.4 pp | — |
| 6 months | +25.4% | +4.4% | +21.0 pp | — |
| Year to date | +24.8% | +12.3% | +12.4 pp | — |
| 1 year | +21.6% | +13.5% | +8.0 pp | +5.5% |
| 3 years | −8.4% | +76.4% | −84.8 pp | +25.7% |
| 5 years | +7.5% | +63.7% | −56.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 640.0 m | 646.9 m | 618.8 m | 624.9 m | 639.3 m | 657.5 m | 673.3 m | 690.9 m |
| Cost of revenue | 405.9 m | 430.5 m | 434.1 m | 425.1 m | 417.0 m | 441.7 m | 451.8 m | 458.0 m |
| SG&A | 104.3 m | 105.6 m | 100.3 m | 105.8 m | 105.5 m | 114.3 m | 115.2 m | 111.5 m |
| Operating income | 113.9 m | 94.8 m | 68.1 m | 74.8 m | 100.7 m | 84.6 m | 89.2 m | 96.4 m |
| Depreciation & amortisation | 15.8 m | 16.0 m | 16.3 m ≈ | 16.2 m ≈ | 16.3 m | 16.9 m | 17.0 m ≈ | 17.4 m ≈ |
| Interest expense | 499.0 k | 329.0 k | 443.0 k | 457.0 k | 521.0 k | 512.0 k | 1.8 m | 2.1 m |
| Pre-tax income | 120.1 m | 95.7 m | 71.1 m | 83.5 m | 105.4 m | 88.8 m | 91.3 m | 96.7 m |
| Income tax | 29.8 m | 23.9 m | 18.6 m | 19.3 m | 28.7 m | 22.5 m | 23.6 m | 25.1 m |
| Net income | 90.3 m | 71.8 m | 52.5 m | 64.2 m | 76.8 m | 66.3 m | 67.7 m | 71.6 m |
| Diluted EPS | 6.03 ≈ | 4.86 | 3.57 | 4.46 | 5.49 ≈ | 4.84 | 5.13 | 5.45 |
| Operating cash flow | 164.9 m | 32.7 m | 138.6 m ≈ | 83.4 m ≈ | 133.5 m | 88.2 m | 84.8 m ≈ | 56.6 m ≈ |
| Capex | 12.8 m | 13.3 m | 15.8 m | 17.5 m | 16.3 m | 17.1 m | 15.5 m ≈ | 18.7 m ≈ |
| Dividends paid | 7.5 m | 7.3 m | 7.2 m ≈ | 8.7 m ≈ | 8.5 m | 8.2 m | 7.9 m ≈ | 9.2 m ≈ |
| Share repurchases | 209.3 m | 33.2 m | 42.9 m ≈ | 180.8 m ≈ | 174.6 m | 190.0 m | 97.5 m ≈ | 62.5 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 30 percentile of its own 40-quarter history (min 20.6, median 28.4, max 51.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 1.9 bn | 2.1 bn | 2.1 bn | 2.1 bn | 2.3 bn | 2.4 bn | 2.5 bn |
| Revenue YoY | +7.0% | +8.7% | +7.3% | +2.9% | −0.2% | +6.1% | +7.4% | +4.1% |
| Net income | 205.5 m | 219.9 m | 319.5 m | 268.6 m | 249.6 m | 272.5 m | 302.0 m | 265.2 m |
| Net income YoY | +109.4% | +7.0% | +45.3% | −15.9% | −7.0% | +9.2% | +10.8% | −12.2% |
| Diluted EPS | 12.23 | 13.31 | 19.48 | 16.85 | 16.53 | 17.93 | 19.89 | 18.34 |
| Diluted EPS YoY | +108.7% | +8.8% | +46.4% | −13.5% | −1.9% | +8.5% | +10.9% | −7.8% |
| net % | 11.5% | 11.3% | 15.4% | 12.6% | 11.7% | 12.0% | 12.4% | 10.5% |
| Free cash flow | 234.3 m | 248.2 m | 430.5 m | 249.9 m | 252.6 m | 273.4 m | 368.0 m | 325.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 74.5 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 979.4 m USD
- Total assets
- 1.5 bn USD
- Debt / equity
- unavailable
- Current ratio
- 1.05x
- ROE
- 25.3%
- ROA
- 16.5%
- FCF margin
- 12.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.1 bn | 2.1 bn | 2.1 bn | 2.3 bn | 2.4 bn | 2.5 bn | SEC (XBRL)· 27 Feb 2026verified |
| Cost of revenue | 1.4 bn | 1.4 bn | 1.4 bn | 1.5 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 27 Feb 2026verified |
| Gross profit | 701.4 m ≈ | 769.8 m ≈ | 765.1 m ≈ | 798.8 m ≈ | 854.3 m ≈ | 823.2 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| SG&A | 330.2 m | 366.7 m | 358.7 m | 395.1 m | 424.4 m | 417.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Operating income | 389.7 m | 343.0 m | 343.5 m | 340.6 m | 366.5 m | 338.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Depreciation & amortisation | 56.6 m | 59.1 m | 59.2 m | 60.9 m | 63.0 m | 64.8 m | SEC (XBRL)· 27 Feb 2026verified |
| EBITDA | 446.3 m ≈ | 402.1 m ≈ | 402.7 m ≈ | 401.4 m ≈ | 429.5 m ≈ | 403.1 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Interest expense | 2.4 m | 1.9 m | 4.6 m | 3.1 m | 1.8 m | 1.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Pre-tax income | 396.0 m | 350.3 m | 329.7 m | 350.4 m | 399.5 m | 355.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Income tax | 76.5 m | 81.8 m | 80.1 m | 77.9 m | 97.5 m | 90.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Net income | 319.5 m | 268.6 m | 249.6 m | 272.5 m | 302.0 m | 265.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Diluted EPS | 19.48 | 16.85 | 16.53 | 17.93 | 19.89 | 18.34 | SEC (XBRL)· 27 Feb 2026verified |
| Weighted average diluted shares | 16.4 m | 15.9 m | 15.1 m | 15.2 m | 15.2 m | 14.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividend per share | 1.32 | 1.40 | 1.48 | 1.56 | 1.80 | 2.20 | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 162.7 m | 32.9 m | 74.1 m | 264.0 m | 178.4 m | 74.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Receivables | 126.9 m | 137.2 m | 139.4 m | 181.5 m | 171.2 m | 182.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Inventories | 7.1 m | 10.1 m | 10.3 m | 12.0 m | 8.2 m | 7.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Current assets | 329.4 m | 230.3 m | 272.6 m | 500.8 m | 394.7 m | 302.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Property, plant & equipment, net | 187.8 m | 193.7 m | 199.7 m | 203.8 m | 200.8 m | 205.7 m | SEC (XBRL)· 27 Feb 2026verified |
| Goodwill | 578.6 m | 578.6 m | 581.3 m | 585.0 m | 666.7 m | 667.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Intangibles (excl. goodwill) | 118.1 m | 108.1 m | 99.7 m | 90.3 m | 92.2 m | 82.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Total assets | 1.4 bn | 1.3 bn | 1.4 bn | 1.7 bn | 1.7 bn | 1.5 bn | SEC (XBRL)· 27 Feb 2026verified |
| Accounts payable | 54.2 m | 73.0 m | 41.9 m | 64.0 m | 44.1 m | 64.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Short-term debt | — | — | 5.0 m | — | — | — | SEC (XBRL)· 27 Feb 2023verified |
| Long-term debt | — | 185.0 m | 92.5 m | — | — | — | SEC (XBRL)· 27 Feb 2023verified |
| Current liabilities | 299.1 m | 302.4 m | 297.2 m | 312.1 m | 285.7 m | 287.1 m | SEC (XBRL)· 27 Feb 2026verified |
| Total liabilities | 533.7 m | 719.5 m | 643.3 m | 560.2 m | 549.6 m | 558.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Equity | 901.2 m † | 623.3 m † | 798.7 m † | 1.1 bn † | 1.1 bn † | 979.4 m † | SEC (XBRL)· 27 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 489.3 m | 308.6 m | 309.9 m | 330.3 m | 417.5 m | 388.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Capex | 58.8 m | 58.7 m | 57.3 m | 56.9 m | 49.5 m | 62.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Free cash flow | 430.5 m ≈ | 249.9 m ≈ | 252.6 m ≈ | 273.4 m ≈ | 368.0 m ≈ | 325.5 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Investing cash flow | -61.6 m | -57.8 m | -59.4 m | -60.6 m | -143.9 m | -59.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Financing cash flow | -271.2 m | -380.6 m | -209.3 m | -79.8 m | -359.2 m | -432.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividends paid | 21.1 m | 22.0 m | 22.0 m | 23.5 m | 27.1 m | 31.7 m | SEC (XBRL)· 27 Feb 2026verified |
| Share repurchases | 175.6 m | 576.0 m | 114.5 m | 67.7 m | 361.4 m | 431.5 m | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 64 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 6.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Growth36
- Returns100
- Balance sheet85
- Valuation22
- Quality100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 302.44 – 594.23 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)302.44 – 471.74 (Mid 368.10)WACC 9.1% · starting FCFF 299.1 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 22.7%
- Peers: EV/EBITDA462.90 – 594.23 (Mid 479.86)3 companies used · median multiple 14.7x · quartiles 14.2x – 18.1xAVAH, BTSG, OPCH
- Peers: P/E389.38 – 542.89 (Mid 458.38)4 companies used · median multiple 21.9x · quartiles 18.6x – 26.0xADUS, AVAH, BTSG, OPCH
- Dividend discount (DDM)outside the aggregate28.91 – 38.88 (Mid 33.16)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 64/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 26.1% | 100 (on a fixed band) | 10% |
| Net margin · Quality | 10.6% | 100 (vs peers) | 6% |
| FCF conversion · Quality | 104.6% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 5.8% | 49 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 3.5% | 23 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 0.4x | 100 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 75.4x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.1x | 25 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 25.5x | 20 (on a fixed band) | 10% |
| EV/EBITDA · Valuation | 16.3x | 0 (on a fixed band) | 10% |
| FCF yield · Valuation | 4.3% | 53 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 8.0% | 100 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 11.4% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet85/100 · 3/3 factors with a value
- Growth36/100 · 2/2 factors with a value
- Quality100/100 · 3/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation22/100 · 3/3 factors with a value
Memo
CHEMED CORPORATION (CHE). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 2.5 bn USD in 2025; YoY growth 4.1%; net margin 10.6%; ROE 29.1%; net debt/EBITDA 0.4x.
The estimated value range is 389.38–542.89 USD per share (median of 3 methods, agreement: high); assumptions are illustrative. Against the central value of 458.38 USD, the price of 533.77 USD leaves a potential of -14.1% (value / price − 1) and a margin of safety of -16.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 64/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 26.1%
- Net margin: 10.6%
- FCF conversion: 104.6%
- Net debt / EBITDA: 0.4x
- Interest coverage: 75.4x
- Shareholder yield (distributions): 8.0%
- Payout ratio (FCF): 11.4%
What contradicts it
- EPS CAGR 3Y: 3.5%
- Current ratio: 1.1x
- P/E (TTM): 25.5x
- EV/EBITDA: 16.3x
Versus the vertical median
Services-Home Health Care Services (SIC 8082) · same industry (4-digit SIC) · compared with 5 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BTSGBrightSpring Health Services, Inc. | 13.1 bn | 35.7 | 20.5% | 2.7% | +28.2% | +82% / unavailable |
| CHEChemed Corporation | 6.9 bn | 25.5 | 29.1% | 10.6% | +4.1% | +22% / −8% |
| OPCHOption Care Health, Inc. | 4.7 bn | 22.7 | 16.0% | 3.7% | +13.0% | +1% / +6% |
| AVAHAveanna Healthcare Holdings Inc. | 3.0 bn | 11.1 | 199.6% | 10.6% | unavailable | +46% / +401% |
| ADUSAddus HomeCare Corp | 2.4 bn | 21.1 | 10.0% | 7.4% | +23.2% | +5% / +45% |
| AHCOAdaptHealth Corp. | 1.0 bn | — | -28.6% | -11.4% | −0.5% | −23% / −13% |
1- and 3-year price returns: for CHE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 331.78 Total return -37% · Per year -37% | 586.20 Total return 10% · Per year 10% | 882.48 Total return 66% · Per year 66% |
| 3 years | 330.61 Total return -37% · Per year -14% | 656.44 Total return 25% · Per year 8% | 1,083.82 Total return 105% · Per year 27% |
| 5 years | 329.45 Total return -36% · Per year -9% | 735.10 Total return 41% · Per year 7% | 1,331.09 Total return 153% · Per year 20% |
- Exit P/E± 164.11
- Net margin± 114.88
- Annual revenue growth± 93.12
- Annual dilution± 9.65
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (27 Oct 2026 · results).
In brief
Chemed Corporation, through its VITAS subsidiary, is one of the largest hospice and palliative care providers in the US, and through Roto-Rooter it operates plumbing and drain cleaning services. In the second quarter of 2026 consolidated revenue rose 8.8% to 673.3 million USD 3, and the company raised its full-year 2026 guidance mainly on VITAS outperformance.
SWOT
Strengths
- The company holds a leading position in hospice care and one of the best-known service brands in the US, Roto-Rooter, which supports demand and name recognition.
- Growth in VITAS patient volume and adjusted margins shows management's execution capability in the core segment.
- The company has put in place a new revolving credit facility with expansion options and has substantially reduced its shares outstanding.
Weaknesses
- The VITAS segment depends almost entirely on government payments, which makes revenue sensitive to changes in reimbursement rules.
- Roto-Rooter operates in fragmented local markets where pricing and reputation can be hard to defend.
- The company relies on technical talent and branch-level management, and losing key staff could affect execution.
Opportunities
- Rising demand for palliative and hospice care as the population ages could support VITAS expansion.
- Acquisitions at Roto-Rooter, such as the four completed recently, can extend geographic reach and service volume.
- If Medicare claims processes become simpler, VITAS revenue could become more predictable.
Threats
- Changes to Medicare and Medicaid rates or budget cuts could directly affect VITAS revenue and profitability.
- Removing or weakening certificate of need rules could bring new competitors into VITAS markets.
- Private equity investment in home services could increase competitive pressure on Roto-Rooter.
Risks
- Dependence on Medicare and Medicaidhigh
Most VITAS revenue comes from government programs, and any reduction in payments or change in methodology could materially affect results 1.
- Billing audits and claims reviewshigh
Reviews and audits can delay, suspend or reduce payments, and the TPE program can extend collection timelines 1.
- Medicare Cap limitationsmedium
Per-admission payment caps can limit revenue in some programs, and county-level differences can amplify the effect 12.
- Competition at Roto-Rootermedium
A fragmented market and private equity investment could pressure pricing or market share 1.
- Shortage of skilled labormedium
Recruiting and retaining licensed plumbers and clinical staff is difficult and could slow growth 1.
Investment thesis
What would need to be true (bull case)
- Growth in VITAS patient volume and the raised 2026 guidance could show the core segment regaining its normal growth pace.
- A substantial reduction in shares outstanding can support per-share results if the repurchase program continues.
- If Roto-Rooter sustains its margins and continues acquisitions, the company could benefit from a more diversified revenue base.
What would break the thesis
- Near-total dependence on government payments leaves VITAS revenue exposed to policy changes.
- Roto-Rooter margins declined in the second quarter while administrative expenses rose, which could limit profitability.
- Debt and credit commitments have grown with acquisitions and repurchases, which could reduce financial flexibility if results weaken.
What to watch
- Pace of VITAS days-of-care and admissions growthQ3 2026
- Final outcome of Medicare Cap limitations and any guidance revisions2026
- Roto-Rooter adjusted EBITDA margin relative to the second-quarter level of 21.1%Q3 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (27 Oct 2026 · results).
The business
Chemed purchases, operates and divests subsidiaries engaged in diverse business activities with the aim of maximizing shareholder value 1. Day-to-day operations are decentralized, while the corporate office handles long-term strategy, capital allocation and the selection of executives of each unit 1. During 2025 the company operated two segments, VITAS and Roto-Rooter 1.
VITAS provides hospice and palliative care through networks of physicians, registered nurses, home health aides, social workers, clergy and volunteers 1. Roto-Rooter provides plumbing, drain cleaning, excavation and water restoration to residential and commercial customers 1. Roto-Rooter services are delivered through company-owned branches, independent contractors and franchisees 2.
The sources show that VITAS depends heavily on Medicare and Medicaid payments, which make up more than 95% of its net patient service revenue 1. This concentration means profitability depends on managing the cost of delivering services, especially labor 1.
Market context
US hospice care is competitive, with small community-based providers dominating and many organizations competing at once 1. In plumbing services competition is fragmented, with local and regional firms as the main rivals 1. Recent private equity investments in home service companies, including plumbing, intensify competition 1.
The sources note that about 20% of hospice providers are not-for-profit 1. Relatively low barriers to entry in many VITAS markets could attract new competitors if certificate of need rules were weakened 1.
Trends
- VITAS volume recoverytailwind
Days-of-care and admissions grew in the second quarter of 2026, and management links the recovery to initiatives to return to normal growth after the 2025 Medicare Cap issue 23. If this momentum holds, it could support segment revenue.
- Pressure on Medicare ratesheadwind
VITAS revenue depends on annual Medicare and Medicaid rate adjustments, which could be reduced or could lag inflation 1. Medicare caps and claims reviews could slow collections 1.
- Inflation, tariffs and fuel costsmixed
Management is monitoring inflation, tariffs and the effects of the war with Iran on fuel prices, which could affect net sales and profitability 2. The company does not expect a material negative effect for the rest of fiscal 2026 2.
- Seasonality and weathermixed
Roto-Rooter revenue is affected by weather patterns, and VITAS admissions in Florida rise in winter as Medicare patients relocate 1. This seasonality can create quarterly variation.
Competitive position
In hospice, competition comes from national and regional providers, hospitals, nursing homes, home health agencies and other care providers, some with greater financial resources than VITAS 1. In plumbing, competition turns on advertising, range of services, name recognition, emergency availability and pricing 1.
Roto-Rooter faces fragmented local and regional rivals, and changes in digital marketing and AI platforms could shift how customers find services 1. Competition for skilled technicians, especially licensed plumbers, is intense 1.
- Regional and local hospice providers
Most hospice providers are small, community-based organizations that compete on quality of service and referral relationships.
- Hospitals and health systems
Hospitals and health systems also offer palliative care programs and can compete for the same patient referrals.
- Long-term care facilities and home health agencies
These providers can offer similar home or facility-based care and are also important referral sources.
- Local plumbing firms and private equity-backed home service companies
The plumbing market is fragmented and private equity investment in home services has recently intensified competition.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Chemed (CHE) Buys a $60.6M Roto-Rooter Franchise. Can Ownership Lift Returns?Yahoo Finance — News · 22 Sept 2026 · EN
The latest news item in our archive is from 22 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report31 Jul 2026
- Current report28 Jul 2026Results of operations · Financial statements and exhibits
- Current report19 May 2026Shareholder vote
- Quarterly report28 Apr 2026
- Current report23 Apr 2026Results of operations · Financial statements and exhibits
- Current report13 Apr 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Proxy statement06 Apr 2026
- Annual report27 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Chemed Corporation · 27 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Chemed Corporation · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Chemed Corporation · 28 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.