Chemed Corporation (NYSE:CHE) is a distinguished entity in the healthcare sector, renowned for its hospice care services through VITAS Healthcare and plumbing services via Roto-Rooter. Competing effectively in both healthcare and plumbing industries, Chemed maintains a significant market presence.
On March 3, 2025, LEE SPENCER S, the executive vice president of Chemed, executed a sale of 1,326 shares at $592.25 each, adjusting his holdings to 17,627 shares. Such insider transactions are often scrutinized for insights into executives' views on the company's future prospects. Despite this sale, Chemed's financial health remains impressive, as evidenced by its participation in the Oppenheimer 35th Annual Healthcare Conference.
Chemed's financial robustness is highlighted by its price-to-earnings (P/E) ratio of 29.02, signaling investor confidence in its earnings capacity. The price-to-sales ratio of 3.64 and enterprise value to sales ratio of 3.62 mirror the market's assessment of the company's sales and overall valuation, inclusive of debt and cash. These figures suggest Chemed's competitive valuation in relation to its industry peers.
The enterprise value to operating cash flow ratio of 21.08 underscores Chemed's valuation concerning its operational cash flow, a key indicator of the efficiency of its core business operations. Moreover, an earnings yield of 3.45% offers insight into the profitability per dollar invested in the company.
Supporting Chemed's financial stability is a debt-to-equity ratio of 0.13, reflecting a prudent approach to leveraging, alongside a current ratio of 1.38, indicating adequate liquidity to meet short-term obligations. These financial indicators collectively depict a well-managed organization poised for continued growth.
