Chemed Corp (CHE) Stock Analysis
Recovery setup
Healthcare · Medical Care Facilities
Sell if holding. At $421.62, A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Healthcare gov-payer cliff: 95% of revenue from Medicare and Medicaid (≥70% threshold). CMS rate-change exposure dominates.; Concentration risk — Customer: Medicare and Medicaid (95.0%).
Chemed operates two businesses: VITAS, one of the largest U.S. hospice care providers, and Roto-Rooter, the leading national plumbing and drain service brand. VITAS generates per-diem revenue almost entirely from Medicare and Medicaid; Roto-Rooter earns fee-for-service revenue... Read more
Sell if holding. At $421.62, A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Healthcare gov-payer cliff: 95% of revenue from Medicare and Medicaid (≥70% threshold). CMS rate-change exposure dominates.; Concentration risk — Customer: Medicare and Medicaid (95.0%). Chart setup: Death cross but MACD improving, RSI 68. Score 4.6/10, moderate confidence.
Passes 4/8 gates (clean insider activity, no SEC red flags, earnings proximity 88d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and healthcare gov payer hard block. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerMedicare and Medicaid95%10-K Item 1A: 'In excess of 95% of VITAS' net patient service revenue consists of payments from the Medicare and Medicaid programs.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
4 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $421.62, A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Healthcare gov-payer cliff: 95% of revenue from Medicare and Medicaid (≥70% threshold). CMS rate-change exposure dominates.; Concentration risk — Customer: Medicare and Medicaid (95.0%). Chart setup: Death cross but MACD improving, RSI 68. Prior stop was $392.50. Score 4.6/10, moderate confidence.
Take-profit target: $444.54 (+5.6% upside). Prior stop was $392.50. Stop-loss: $392.50.
Healthcare gov-payer cliff: 95% of revenue from Medicare and Medicaid (≥70% threshold). CMS rate-change exposure dominates.; Concentration risk — Customer: Medicare and Medicaid (95.0%); Analyst target reached - limited upside remaining.
Chemed Corp trades at a P/E of 23.2 (forward 15.8). TrendMatrix value score: 5.6/10. Verdict: Sell.
8 analysts cover CHE with a consensus score of 3.8/5. Average price target: $447.
What does Chemed Corp do?Chemed operates two businesses: VITAS, one of the largest U.S. hospice care providers, and Roto-Rooter, the leading...
Chemed operates two businesses: VITAS, one of the largest U.S. hospice care providers, and Roto-Rooter, the leading national plumbing and drain service brand. VITAS generates per-diem revenue almost entirely from Medicare and Medicaid; Roto-Rooter earns fee-for-service revenue from residential and commercial customers.