Chemed Corp
Find Ratings ReportsCHEMED CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. CHEMED CORP has average liquidity. Currently, the Quick Ratio is 1.43 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 38.70% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 585.91 | 546.65 |
EBITDA ($mil) | 124.18 | 110.23 |
EBIT ($mil) | 108.64 | 95.62 |
Net Income ($mil) | 90.05 | 62.13 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 263.96 | 74.13 |
Total Assets ($mil) | 1668.1 | 1442.01 |
Total Debt ($mil) | 139.41 | 247.01 |
Equity ($mil) | 1107.88 | 798.72 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 38.34 | 37.9 |
EBITDA Margin | 21.19 | 20.16 |
Operating Margin | 18.54 | 17.49 |
Sales Turnover | 1.36 | 1.48 |
Return on Assets | 16.33 | 17.31 |
Return on Equity | 24.6 | 31.25 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.61 | 0.92 |
Debt/Capital | 0.11 | 0.24 |
Interest Expense | 0.34 | 1.6 |
Interest Coverage | 317.66 | 59.73 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 15.04 | 14.88 |
Div / share | 0.4 | 0.38 |
EPS | 5.9 | 4.13 |
Book value / share | 73.69 | 53.7 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 79619.0 | 76125.0 |
BUY. The current P/E ratio indicates a significant premium compared to an average of 21.06 for the Ambulatory Health Care Services subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 8.82 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 3.19. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, CHEMED CORP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CHE 36.27 | Peers 21.06 | CHE 29.59 | Peers 54.00 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. CHE is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CHE is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CHE 25.86 | Peers 15.17 | CHE 1.16 | Peers 0.67 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. CHE is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CHE trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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CHE 8.82 | Peers 3.19 | CHE 8.40 | Peers 33.66 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CHE is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CHE is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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CHE 4.32 | Peers 1.25 | CHE 6.06 | Peers 10.95 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CHE is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CHE significantly trails its peers on the basis of sales growth. |
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