CHE Stock Analysis — Chemed Corporation
Sector: Healthcare
AI Verdict
CHE trades at 16.8x next year's earnings with 27.2% EPS growth expected—cheap for the growth on offer, and the hospice network moat makes those expectations credible unless policy shifts break the model.
Competitive Moat
Chemed operates VITAS Healthcare, the largest provider of hospice care in the U.S., benefiting from scale-driven referral networks and regulatory barriers that limit new entrants. Its established relationships with hospitals and insurers create high switching costs for patients and partners.
Summary
Chemed's forward P/E of 16.8x with 27.2% expected EPS growth stands out in healthcare services.
Where It Stands
With a forward P/E of 16.8x (below the healthcare median of 22x), 27.2% expected EPS growth, and a trailing PEG of 0.78, CHE offers growth at a discount to the sector.
Key Metrics
- Trailing P/E: 21.3x
- Forward P/E: 16.8x
- PEG Ratio: 0.78
- Earnings Growth: +0.3%
- Revenue Growth: +0.0%
- Dividend Yield: 0.01%
- 52-Week High: $583.96
- 52-Week Low: $365.20
Analyst Consensus
4 Buy · 4 Hold · 0 Sell (8 analysts)
Bull Case
Analysts expect 27.2% EPS growth next year while the stock trades at just 16.8x forward earnings, suggesting the market is underpricing its earnings momentum.
Bear Case
If the P/E reverts to the sector median of 22x after growth slows, upside is limited; if growth disappoints, the low P/E won't protect against a pullback.
Catalyst to Watch
Watch for quarterly hospice admissions and regulatory updates, as any disruption to referral volumes or reimbursement rates could change the earnings trajectory.