CluenexChemed Corporation CHE
Chemed Corporation scores good on business quality (6.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Chemed Corporation does
Chemed provides hospice care and plumbing repair services, collecting payments from patients, insurers, and residential customers. The company is preparing to report its third quarter 2026 earnings in late October.
- What it does best
Chemed turns capital into returns with elite efficiency, posting an ROE of 29.5 percent that crushes peer LH at 11.6 percent. This advantage stems from dense local operating networks that absorb regional overhead.
- The main risk
Slowing top-line expansion at 4.1 percent revenue growth threatens to expose a rich valuation if organic patient volumes stall further.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 14.4 percent while FCF margin hits 12.5 percent, landing in the middle of the pack for its sector at the 42nd percentile. Scale brings stable cash generation rather than expanding margins.
Scale and regulatory barriers protect its hospice operations, landing in the top quartile for ROE at 29.5 percent. Rivals face years of licensing hurdles to replicate this network.
Revenue growth printed at 4.1 percent on $2.6B in sales, showing a steady deceleration compared to prior annual steps from $2.1B up to $2.5B.
Debt-to-equity sits at a negligible 0.01 with interest coverage at 114x, leaving debt costs as a rounding error. Free cash flow reached $324M while buybacks hit $640M, getting softer on cash preservation.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
3 sold $4.8M outside pre-planned sales.
Our sealed record on CHE
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Chemed Corporation scores good on the Cluenex quality check (6.6 of 10), measured against its own industry. Profitability is fair, moat strong, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 3 sold $4.8M outside pre-planned sales.
Oct 27, 2026.
See CHE today
- Today's verdict on CHE, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Chemed Corporation (CHE)”, https://cluenex.com/stocks/che/, data as of Oct 10, 2026.