Chemed Corp (CHE) Stock Price & How to Invest

Chemed Corporation runs two entirely unrelated businesses under one holding company. VITAS Healthcare, roughly two-thirds of revenue, is a leading provider of end-of-life hospice and palliative care, drawing well over 90% of its revenue from Medicare and Medicaid per-diem payments. Roto-Rooter, the remaining third, is the largest US provider of plumbing, drain cleaning, and water-damage restoration, serving both residential and commercial customers through company-owned operations and franchises. The two segments share little operationally but together produce steady consolidated cash flow that management returns via buybacks and a small dividend.

The investment picture is one of slow, reliable compounding rather than rapid growth. VITAS benefits from aging demographics and rising hospice utilization but is capped by Medicare per-patient limits and tight regulatory oversight, while Roto-Rooter is more cyclical and weather-sensitive, and has recently seen softer demand and margin pressure in its restoration business. In early 2026 VITAS was the stronger performer (revenue up around 3%) while Roto-Rooter revenue dipped slightly, and management raised full-year adjusted EPS guidance. Investors weigh a defensive, high-return-on-capital model against reimbursement risk, plumbing cyclicality, and a valuation that already reflects the company's quality.

VITAS derives the large majority of its revenue from Medicare and Medicaid, so reimbursement rate changes, the annual per-patient Cap, and policy shifts can materially affect results. The hospice industry faces heavy regulatory oversight (Conditions of Participation, anti-kickback and false-claims rules, audits, and past MAC repayment demands), and VITAS disclosed a 2025 cyberattack exposing protected health information. Roto-Rooter is cyclical and weather-dependent, with recent softness in restoration demand and margin pressure, plus reliance on scarce licensed-plumber labor. The stock also trades at a premium multiple, so any disappointment on volumes or margins can drive sharp drawdowns, as seen after weaker quarters.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Chemed Corp's investor relations page or your broker.

• Revenue (TTM): ~$2.5B
• Net income (FY2025): ~$265M
• Free cash flow (FY2025, after capex): ~$325M
• 2026 adjusted EPS guidance: ~$23.25-$24.25
• Market cap: ~$6B
• P/E ratio: ~20x

Chemed posted 2025 revenue of about $2.53 billion (up ~4%) with net income near $265 million, and Q1 2026 consolidated revenue of roughly $657 million split about $420 million VITAS and $237 million Roto-Rooter. The stock traded near $480 in early July 2026, giving a market cap around $6 billion and a trailing P/E in the low-20s. Management raised full-year 2026 adjusted EPS guidance to roughly $23.25 to $24.25.

There are three common ways to get CHE exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so CHE sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where CHE fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

CHE is a durable, cash-rich pairing of hospice and home-services businesses whose fortunes hinge mostly on VITAS hospice volumes and Medicare reimbursement, offset by a cyclical Roto-Rooter segment.

Whether CHE is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is CHE a buy?, and where the stock could go from here in the CHE stock forecast.

For income investors, whether CHE pays a dividend and how the payout looks is covered in does CHE pay a dividend?