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. Momentum improved in the second quarter: consolidated revenue rose about 8.8% year over year to roughly $673 million, and EPS of $6.06 beat the $5.60 consensus, the second straight beat after two misses in late 2025. Investors weigh a defensive, high-return-on-capital model against reimbursement risk, plumbing cyclicality, and a valuation that already reflects the company's quality.

On the Roto-Rooter side, Chemed bought back its largest franchisee territory in September 2026 for about $60.6 million, adding California coverage the company says reaches more than 11 million additional residents. UBS started coverage at Buy with a $650 target the same month. CHE closed at $513.43 on October 16, 2026, up about 21% year to date and about 19% over one year, below its 52-week high of $557. Third-quarter results are due October 27, 2026, with consensus EPS of $6.44 on about $685 million of revenue.

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. Insiders sold shares worth about $1 million on two occasions in September 2026, and the franchise purchase adds integration work in a large new market.

5 analysts publish price targets on CHE, averaging $571.60 against a $512.38 price as of October 2026, or +11.6%. The published targets run from $520.00 to $650.00, a narrow spread, and the ratings split 2 buy, 3 hold, 0 sell. Over the last six months there have been 4 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full CHE forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Chemed Corp. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. VITAS hospice demand and aging demographics. An aging US population and rising acceptance of hospice care support steady demand for VITAS services. The most optimistic published target, $650.00, assumes this works close to its best case.

The case against. 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 most pessimistic target, $520.00, is roughly what CHE is worth if this bites instead.

Read the full bull and bear case on CHE, including what would have to change to break either one. Walnut is not an investment adviser.

No. Chemed Corp (CHE) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

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): ~$2.6 billion; Q2 2026 ~$673 million, +8.8% YoY
• Net income (TTM): ~$275 million; trailing EPS ~$20.37
• Q2 2026 EPS: $6.06 vs $5.60 expected
• Margins: Gross ~33%; operating ~13%; net ~10.6%
• P/E: ~25x trailing; ~19x forward
• Free cash flow (TTM): ~$308 million
• Dividend yield: ~0.5% ($2.80 a year)
• Market cap: ~$6.7 billion at $513.43 (Oct 16, 2026)

Chemed's revenue growth picked up to nearly 9% in the second quarter of 2026 and earnings beat estimates twice in a row, which helped lift the shares about 21% this year. At about 19 times forward earnings the stock prices in that recovery continuing, with analysts expecting 2026 EPS of about $25.49. The October 27, 2026 report (consensus EPS $6.44) will show whether VITAS volumes and Roto-Rooter demand held up in the third quarter.

Other names that sit close to CHE: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

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 portfolio, so CHE sits alongside other stocks that express the same thesis.

Walnut takes the portfolio 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.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

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. After two quarters of earnings beats in 2026 and a roughly 21% gain in the stock, CHE trades at about 25 times trailing and 19 times forward earnings heading into its October 27, 2026 report.

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 or a sell?, 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? And to weigh CHE against a peer, read the full side-by-side comparisons: CHE vs ADUS and CHE vs AVAH.