Chemed Corporation, publicly traded under the ticker "CHE", is a diversified corporation based in Cincinnati, Ohio, providing vital services in varying industries since its establishment in the late 1900s. The corporation operates two primary business segments: VITAS Healthcare and Roto-Rooter.
VITAS Healthcare, a subsidiary of Chemed, is the acknowledged leader in the American hospice care industry. This segment provides end-of-life care services for patients with critical and terminal illnesses, providing compassionate, advanced illness care to patients and families. These services are administered by a dedicated team of registered nurses, home health aides, social workers, physicians, and volunteers, who deliver quality palliative care in the comfort of the patient's home or other settings such as hospitals, nursing homes, and assisted living communities. VITAS maintains a significant presence nationwide and serves a majority of the metropolitan regions.
The Roto-Rooter business segment, on the other hand, offers a wide array of plumbing, sewer, and drain cleaning services. It is recognized as the largest provider of these services in the United States and Canada, operating in both residential and commercial markets. This division is backed by a team of trained professionals who undertake jobs ranging from basic maintenance and repairs to larger-scale installations.
Chemed Corporation, under the leadership of CEO Kevin J. McNamara, is also committed to corporate social responsibility with initiatives such as Environment, Health, and Safety (EHS) programs focusing on the wellness of its employees, and the Charity Program, where it financially supports numerous charitable causes.
Chemed's strong financial footing has been confirmed by their consistent annual reports showing stable revenue generation and operating income growth. The corporation's financial robustness has been largely driven by the organic growth of its existing businesses and the strategic acquisitions of related businesses.
Despite being in diverse business sectors, Chemed Corporation has successfully established itself as a market leader in both healthcare and service industries. The corporation's unwavering commitment to quality service and its innovative approach to business has solidified its reputation and continues to drive its growth in the market.
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Chemed Corp (CHE) shares rose 3.3% to $512.16, placing it significantly below its GF Value™ estimate of $690.13, indicating it is undervalued by 25.8%. The company boasts a strong GF Score™ of 87/100, driven by robust profitability and valuation, despite a lower momentum rank. However, investors should note the insider selling of $9.1 million over the past year with no buying activity, which presents a potential cautious signal.
Chemed Corporation acquired its largest independent Roto-Rooter franchise for $60.6 million, covering California territories that serve approximately 11 million people. The acquisition is expected to leverage existing demand and the Roto-Rooter brand. The success of the investment will depend on Chemed's ability to improve operating margins, integrate the new operations efficiently, and generate sufficient cash flow to justify the purchase price.
A recent SEC filing revealed that an insider at Chemed Corporation sold shares valued at $1,002,800. This transaction occurred on September 21, 2026. The article also provides recent news about Chemed, including dividend declarations and analyst rating adjustments.
Kevin Mcnamara, President and CEO of Chemed Corp (CHE), sold 2,000 shares of the company, continuing a pattern of insider selling over the past year. While insider activity shows 13 sells and 0 buys, the stock is considered "Modestly Undervalued" by GuruFocus's GF Value, and 7 gurus hold shares, with more adding than trimming. This creates a nuanced picture for investors, suggesting personal financial planning may be a factor in the insider sale rather than a lack of confidence in the company.
Chemed Corp (CHE), a company specializing in healthcare and essential services, shows a potential upside of 9.51% based on analyst target prices. The company demonstrates strong financial health with robust revenue growth, a solid return on equity of 27.11%, and a healthy free cash flow. Despite trading below its 50-day moving average, its unique diversified business model and strong fundamentals suggest a compelling investment case for long-term investors.
Chemed CEO Kevin Mcnamara sold 2,000 shares of the company's stock for approximately $1.0 million, reducing his stake by 2.84%. Following the sale, Chemed's shares fell by 1.3%, though the company recently reported strong quarterly earnings that surpassed estimates and increased its quarterly dividend. Institutional investors hold a significant portion of the stock, and analysts currently have a consensus "Hold" rating with an average price target of $530.75.
Bank of America Corp DE has acquired a new stake of 103,610 shares in Chemed Corporation (NYSE:CHE) during the second quarter, valued at approximately $48.3 million, giving them a 0.79% ownership. This move comes as Chemed reported strong quarterly results, beating analyst expectations with EPS of $6.06 and revenue of $673.25 million, an 8.8% year-over-year increase, and subsequently raised its quarterly dividend. Despite these positive indicators, analysts maintain a "Hold" rating with an average price target of $530.75 for the stock.
Chemed Corporation (NYSE:CHE) is attracting attention due to its unusual business model, combining hospice and palliative care through VITAS Healthcare with plumbing and water restoration services via Roto-Rooter. This diversification, along with strong quarterly financial performance that surpassed market estimates and a recent dividend increase, has brought the company into focus. Its unique structure provides exposure to distinct demand patterns in both healthcare and essential home services, setting it apart in the market.
Chemed Corporation (NYSE:CHE) has received an average "Hold" recommendation from brokerages, with five out of six analysts rating the stock neutral and one recommending a buy. The average 12-month price target is $530.75. The company recently reported strong quarterly results, exceeding EPS and revenue expectations, and increased its quarterly dividend.
The California State Teachers Retirement System significantly increased its stake in Chemed Corporation by purchasing 7.6 million additional shares, now owning 58.25% of the company. Chemed reported strong quarterly earnings, beating analyst expectations, and raised its quarterly dividend. Despite insider selling, institutional investors hold a substantial portion of the company, and analysts maintain a "Hold" rating with an average target price of $530.75.