# Chemed Corporation (CHE) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CHE/thesis · /stocks/CHE/memo

## Financial Snapshot

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source: coverage-next-full | ticker: CHE | step: "04" | created: 2026-05-29
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### Step 04 — Financial Snapshot: Chemed Corporation (CHE)

#### Annual Financial Summary (FY2021–FY2024)

##### Income Statement Overview

| Metric | FY2021 | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|--------|
| Total Revenue | $2,140M | $2,183M | $2,291M | $2,390M |
| Revenue Growth | +6.3% | +2.0% | +4.9% | +4.3% |
| VITAS Revenue | $1,491M | $1,509M | $1,569M | $1,670M |
| Roto-Rooter Revenue | $650M | $671M | $722M | $720M |
| Gross Profit | ~$750M | ~$760M | ~$810M | ~$860M |
| Gross Margin | ~35% | ~35% | ~35% | ~36% |
| Operating Income (GAAP) | ~$250M | ~$245M | ~$280M | ~$320M |
| Operating Margin | ~11.7% | ~11.2% | ~12.2% | ~13.4% |
| Net Income (GAAP) | ~$185M | ~$175M | ~$200M | ~$240M |
| Diluted EPS (GAAP) | ~$12.00 | ~$11.90 | ~$14.10 | ~$17.20 |
| Adjusted EPS | ~$17.50 | ~$16.50 | ~$18.50 | ~$22.00 |
| Adjusted EBITDA | ~$340M | ~$335M | ~$370M | ~$420M |

*Note: All figures are approximate estimates based on publicly available data and analyst consensus. Actual reported figures may differ.*

##### Segment Operating Performance

| Segment | FY2021 | FY2022 | FY2023 | FY2024 |
|---------|--------|--------|--------|--------|
| **VITAS Operating Income** | ~$155M | ~$140M | ~$170M | ~$210M |
| VITAS Operating Margin | ~10.4% | ~9.3% | ~10.8% | ~12.6% |
| **Roto-Rooter Operating Income** | ~$165M | ~$168M | ~$183M | ~$180M |
| Roto-Rooter Operating Margin | ~25.4% | ~25.0% | ~25.3% | ~25.0% |

##### Key Earnings Notes by Year

**FY2021:**
- Roto-Rooter benefited from COVID pull-forward effect (Americans spending more time at home, accelerating plumbing maintenance + restoration work)
- VITAS ADC was pressured by COVID — hospital lockdowns disrupted normal hospice referral pathways from physicians and SNFs
- VITAS admissions and ADC recovered slowly through H2 2021
- Adjusted EPS ~$17.50 included benefits from lower travel costs, deferred expenses

**FY2022:**
- VITAS continued to grapple with COVID-related ADC suppression (admissions were weaker than pre-COVID baseline)
- Department of Justice / OIG investigation into VITAS billing practices created significant legal overhang
- Management set aside litigation accruals; adjusted EPS excluded legal expenses (~$20-30M pretax per year)
- Roto-Rooter showed slight growth but began normalizing from COVID peak
- VITAS nursing labor cost inflation was a headwind (~5-8% wage increases)

**FY2023:**
- VITAS settled the DOJ/OIG investigation for approximately $75M — a significant but manageable amount
- Post-settlement, VITAS began recovering ADC as the legal cloud lifted and referral relationships normalized
- VITAS ADC growth resumed in H2 2023
- Roto-Rooter revenue grew ~8% on strong pricing; water restoration segment performed well
- Adjusted EPS ~$18.50 benefited from settlement of uncertainty

**FY2024:**
- VITAS ADC recovery accelerated — a meaningful inflection year
- Medicare hospice base rate increased ~3.1% for FY2024 (CMS final rule)
- VITAS revenue per patient day rose on favorable mix (higher GIP utilization + SIA payments)
- Roto-Rooter revenue flat YoY (~-0.3%) — housing market slowdown and normalization from elevated restoration work
- Adjusted EPS ~$22.00 — significant acceleration from FY2023
- Strong FCF generation enabled continued buybacks

---

#### Adjusted vs. GAAP Reconciliation

Management presents "adjusted" results that exclude:
1. Litigation and investigation charges (DOJ/OIG, other legal matters)
2. Acquisition-related amortization
3. Non-cash stock compensation (partially excluded)
4. Other non-recurring items

The adjusted EPS figures are widely used by sell-side analysts and management compensation is tied to adjusted targets. The GAAP-adjusted gap widened in FY2022-2023 due to the investigation and settlement charges.

| Year | GAAP EPS | Adjusted EPS | Delta | Primary Driver |
|------|---------|------------|-------|----------------|
| FY2021 | ~$12.00 | ~$17.50 | ~$5.50 | Stock comp, amortization |
| FY2022 | ~$11.90 | ~$16.50 | ~$4.60 | Legal accruals, amortization |
| FY2023 | ~$14.10 | ~$18.50 | ~$4.40 | Settlement, amortization |
| FY2024 | ~$17.20 | ~$22.00 | ~$4.80 | Amortization, stock comp |

---

#### Profitability Metrics

| Metric | FY2021 | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|--------|
| Gross Margin | ~35% | ~35% | ~35% | ~36% |
| EBITDA Margin | ~15.9% | ~15.3% | ~16.2% | ~17.6% |
| Net Margin (GAAP) | ~8.6% | ~8.0% | ~8.7% | ~10.0% |
| Effective Tax Rate | ~24% | ~24% | ~24% | ~24% |

---

#### Cash Flow Summary

| Metric | FY2021 | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|--------|
| Cash from Operations | ~$290M | ~$270M | ~$300M | ~$350M |
| Capex | ~$75M | ~$80M | ~$85M | ~$90M |
| Free Cash Flow | ~$215M | ~$190M | ~$215M | ~$260M |
| FCF Margin | ~10% | ~8.7% | ~9.4% | ~10.9% |
| FCF/Adjusted Net Income | ~80% | ~75% | ~75% | ~80% |

Capex is primarily for VITAS inpatient unit construction/leasehold improvements and IT systems. Roto-Rooter capex is modest (fleet, equipment).

---

#### Valuation Context

| Metric | FY2024A | FY2025E |
|--------|--------|--------|
| Revenue | ~$2,390M | ~$2,520M |
| Adjusted EPS | ~$22.00 | ~$24.00 |
| Adjusted EBITDA | ~$420M | ~$460M |
| P/E (Adjusted, at ~$500 price) | ~22.7x | ~20.8x |
| EV/EBITDA (at ~$7.5B EV) | ~17.9x | ~16.3x |
| FCF Yield | ~3.5% | ~4.0% |

Chemed typically trades at 20-25x adjusted earnings — a premium to the S&P 400 but below pure-play healthcare services names. The discount to healthcare peers partly reflects the Roto-Rooter "conglomerate discount" and the VITAS Medicare regulatory risk premium.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CHE/fundamental

## Navigation

- Overview: /stocks/CHE
- Financials (this page): /stocks/CHE/financials
- Thesis: /stocks/CHE/thesis
- Investment Memo: /stocks/CHE/memo
- Coverage universe: /stocks