Chemed Corporation's Health Care Conference Debut: A Strategic Move for Investor Confidence

Chemed Corporation (NYSE: CHE) is set to present at the Bank of America Securities Health Care Conference 2025 on Tuesday, May 13, 2025, at 3:40 PM PDT, marking a pivotal moment for the Cincinnati-based company to showcase its dual-growth strategy to investors. The event, held at the Encore at the Wynn Las Vegas, will provide a live webcast accessible via Chemed’s Investor Relations portal, with a replay available within 24 hours. This presentation offers investors a critical opportunity to assess Chemed’s trajectory in two distinct but complementary industries: healthcare and home services.

The Strategic Context of the Presentation

The Bank of America conference is a premier gathering for healthcare investors, drawing attention to companies like Chemed that straddle high-growth sectors. With VITAS Healthcare (its hospice care subsidiary) and Roto-Rooter (its plumbing and drain services arm), Chemed operates in two markets with distinct yet converging tailwinds: aging populations driving hospice demand and rising household maintenance needs. The conference’s timing—just ahead of Q2 earnings—suggests management will emphasize its ability to balance these divisions’ performance.

What to Watch for in the Presentation

Investors should focus on three key areas:
1. VITAS Healthcare’s Hospice Growth: Chemed’s 51% ownership stake in VITAS positions it as the nation’s largest hospice provider. With the U.S. hospice market projected to grow at a CAGR of 6.2% through 2030 (per MarketData), Chemed must demonstrate how it will capitalize on this trend amid regulatory and reimbursement challenges.

1. Roto-Rooter’s Resilience: The plumbing and drain services market is buoyed by rising homeownership rates and infrastructure spending. Roto-Rooter’s dominance (over 1,200 locations nationwide) could be leveraged for geographic or service-line expansion. Chemed’s plans for this division—whether through acquisitions or tech-driven service upgrades—will signal long-term value.

2. Financial Discipline: Chemed’s dividend yield of 2.8% (as of 2024) and its history of share buybacks (e.g., $200 million authorized in 2023) highlight its commitment to shareholder returns. The presentation’s tone on capital allocation—particularly in a slowing economy—will test investor confidence.
   

Risks and Market Realities

While Chemed’s dual business model offers diversification, risks persist. Hospice care faces regulatory scrutiny over reimbursement rates, while Roto-Rooter’s labor costs could rise in a competitive job market. The company’s 2024 Q3 earnings showed a 9.3% increase in hospice revenue but also a 12% rise in operating expenses. Management will need to address how they plan to sustain margins.

The Webcast’s Role in Investor Engagement

The live webcast (and subsequent replay) is a strategic move to democratize access to Chemed’s message. With 73% of investors valuing real-time updates from company events (per a 2024 Institutional Investor survey), the presentation’s clarity and confidence will shape near-term sentiment. Analysts will scrutinize CEO Michael Witzeman’s commentary on:
- 2025 earnings guidance for both subsidiaries,
- M&A activity potential (Chemed has acquired smaller hospice providers in the past), and
- Sustainability initiatives, such as Roto-Rooter’s eco-friendly plumbing solutions.

Conclusion: A Balancing Act for Long-Term Value

Chemed’s presentation at the Bank of America conference is a chance to reinforce its narrative as a defensive growth stock in two recession-resilient sectors. With $3.8 billion in 2023 revenue (80% from healthcare, 20% from services), the company’s ability to sustain growth hinges on executing its dual mandate.

Historically, Chemed’s stock has outperformed the S&P 500 during market downturns, thanks to its high recurring revenue streams. However, 2024 saw a 6% dip in its stock price amid broader healthcare sector volatility. A strong conference performance could reverse this trend, especially if management provides clarity on margin management and organic growth pipelines.

Investors should pay close attention to how Chemed addresses its key levers: scaling VITAS’ hospice network without overextending, leveraging Roto-Rooter’s brand for premium pricing, and maintaining a dividend yield that outpaces inflation. With the presentation’s replay available for 90 days, the message will linger—making this event a cornerstone of Chemed’s 2025 investor narrative.

In short, this is more than a routine presentation: it’s Chemed’s moment to prove it can navigate dual markets, delivering stability and growth in an uncertain economy.