* Note: Prices are in Million (M) USD.
Description:
Chemed Corporation provides hospice and hospice services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers across the United States. The company is headquartered in Cincinnati, Ohio.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $250 M
Debt : $146 M
EBITDA : $419 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Medical care
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.09
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $165 M
Average Revenue: $1,594 M
Revenue Converted To Free Cash Flow (%): 10.3%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,431 M
Revenue 4 Years Ago (2020-12-31): $2,080 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $15 M
Share Count 5 Years Ago (2020-12-31): $16 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $25.92
Trailing 12-Month Earnings Per Share (EPS): $22.07
Average Earnings Per Share (EPS): $24.00
Dividend Per Share (DPS): $2
Payout Ratio: 8%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 22.9%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $458
52-Week Low: $408
Threshold Price (15% Above 52-Week Low): $469
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,486 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 29 points to above Chemed Corp (CHE) stock.
Last 20 Years Avg PE 21.12, Fair Value PE 15, Industry Based PE 15, Growth Based PE 3, RCFC Based PE 18.27, ROE Based PE 28.31, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 16.83. Value-Trades has assined P/E value 16.83. Since an average (Current Year EPS + Next Year EPS) earning per share is $23.995.
The fair value of Chemed Corp (CHE) stock should be (16.83 x $23.995) = $403.75.
