Chemed Outperforms Market by 1.79% Over Last 10 Years

Chemed CHE has outperformed the market over the past 10 years with an annualized return of 13.26%, resulting in a $3,495.96 value for a $1000 investment. The company's market capitalization is $6.90 billion. The key takeaway is the significant impact of compounded returns on long-term cash growth.

Chemed Corp (NYSE: CHE) has reached a new 52-week low, with its stock hitting a price of 468.3 USD [1]. Despite this decline, the company maintains strong fundamentals with a GOOD financial health rating according to InvestingPro analysis [1]. This milestone marks a significant point for the company, which has experienced a decrease in its stock value over the past year. The 1-year change data reveals a decrease of 11.84%, though InvestingPro analysis indicates the stock is currently in oversold territory [1].

Trading at a P/E ratio of 27.14, Chemed has maintained its dividend payments for 55 consecutive years, demonstrating long-term stability despite current market challenges [1]. Investors and analysts will be closely monitoring Chemed Corp’s performance to gauge potential recovery or further declines in the coming months. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels [1].

In other recent news, Chemed Corporation reported weaker-than-expected Medicare admissions in Florida, leading to projected revenue limitations for its VITAS subsidiary [1]. The company anticipates a Medicare Cap revenue limitation of $18 million to $25 million for the 2025 fiscal year, which was not included in previous earnings guidance [1]. Chemed also noted unexpected weakness in Roto-Rooter’s residential business demand during the second quarter, although commercial demand showed improvement [1]. RBC Capital has adjusted its price target for Chemed to $640 from $674, maintaining an Outperform rating, citing the Medicare cap limitations as a factor affecting the 2025 outlook [1]. Meanwhile, BofA Securities maintained a Buy rating with a $708 price target, emphasizing Chemed’s proactive approach to managing Medicare cap challenges and its potential for continued financial performance [1].

Chemed’s annual stockholders’ meeting resulted in the election of all nominated directors and the approval of the 2025 Stock Incentive Plan [1]. Additionally, Chemed’s appointment of PricewaterhouseCoopers LLP as independent accountants was ratified [1]. Investors are likely to keep a close watch on Chemed’s strategies to handle the Medicare cap situation, which is pivotal for the company’s success [1].

Over the past 10 years, Chemed has outperformed the market with an annualized return of 13.26%, resulting in a $3,495.96 value for a $1000 investment [2]. The company’s market capitalization is $6.90 billion [2]. This significant impact highlights the power of compounded returns on long-term cash growth.

References:
[1] https://www.investing.com/news/company-news/chemed-corp-stock-hits-52week-low-at-4683-usd-93CH-4124878
[2] https://finance.yahoo.com/quote/CHE/