Latest news with #Chemed
Yahoo
04-07-2025
- Business
- Yahoo
3 Profitable Stocks with Open Questions
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. That said, here are three profitable companies to steer clear of and a few better alternatives. Trailing 12-Month GAAP Operating Margin: 18.6% Formerly known as Hotshine Holdings, Mister Car Wash (NYSE:MCW) offers car washes across the United States through its conveyorized service. Why Do We Steer Clear of MCW? Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its stores Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution At $6.45 per share, Mister Car Wash trades at 14.2x forward P/E. Read our free research report to see why you should think twice about including MCW in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 15.6% With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services. Why Does CHE Fall Short? Sales trends were unexciting over the last five years as its 4.6% annual growth was below the typical healthcare company Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.9 percentage points Eroding returns on capital suggest its historical profit centers are aging Chemed's stock price of $473.18 implies a valuation ratio of 18.3x forward P/E. Check out our free in-depth research report to learn more about why CHE doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: 23% Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ:SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes. Why Are We Cautious About SSNC? Annual revenue growth of 4.9% over the last five years was below our standards for the business services sector Free cash flow margin shrank by 3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Below-average returns on capital indicate management struggled to find compelling investment opportunities SS&C is trading at $82.14 per share, or 13.8x forward P/E. Dive into our free research report to see why there are better opportunities than SSNC. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
30-06-2025
- Business
- Yahoo
Why Chemed (CHE) Shares Are Plunging Today
Shares of healthcare services company Chemed Corporation (NYSE:CHE) fell 14.7% in the afternoon session after the company provided a negative update on its full-year 2025 guidance, citing issues with its VITAS hospice business. The company announced that it now anticipates a significant Medicare Cap revenue limitation for its VITAS subsidiary in Florida. Specifically, Chemed projects a shortfall of $18 million to $25 million for the 2025 fiscal year ending in September, a reversal from previous expectations of having a cushion. The company pointed to weaker-than-expected Medicare admissions in April and May as the primary cause. Adding to concerns, Chemed also noted unexpected weakness in the residential demand for its Roto-Rooter plumbing services during the second quarter. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Chemed? Access our full analysis report here, it's free. Chemed's shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for Chemed and indicate this news significantly impacted the market's perception of the business. Chemed is down 9.5% since the beginning of the year, and at $478.04 per share, it is trading 22.8% below its 52-week high of $619.21 from April 2025. Investors who bought $1,000 worth of Chemed's shares 5 years ago would now be looking at an investment worth $1,060. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Business Insider
28-06-2025
- Business
- Business Insider
Chemed provides update on 2025 performance in Q2 preannouncement
Chemed (CHE) announced developments related to Q2 earnings and FY25 guidance. In prior public statements, management discussed the possibility that the VITAS subsidiary could have an aggregate Medicare Cap billing limitation related to its Florida consolidated program, excluding Tallahassee. However, as of the most recent quarterly earnings update, VITAS internal projections showed that the Florida consolidated program would end the 2025 government fiscal year ending on September 30, 2025 with a Medicare Cap cushion. Actual Medicare admissions in both April and May 2025 in Florida were weaker than anticipated and lower than VITAS' internal projections. As a result, VITAS now projects a Medicare Cap revenue limitation for the 2025 Cap Year of $18M-$25M related to the Florida consolidated program, excluding Tallahassee. The above projection includes actual results through May. Actual June results, which show better admissions than projected through the first half of the month, and actual results in Q3 could have a significant impact on this projection. Previous guidance for 2025 earnings did not include any Florida Medicare Cap. Based on the new start locations in Florida, primarily Marion County and Pinellas County, combined with operational changes currently being made in the Florida programs, management expects not to have any significant level of Medicare Cap revenue limitation in its Florida consolidated program for the 2026 fiscal year. This expectation assumes that the rate differential discussed above does not recur for the 2026 Cap Year. In the event that the rate differential does recur, VITAS will respond with further mitigation strategies at the outset of the 2026 Cap Year. While less financially significant than the VITAS Medicare Cap situation, during Q2, Roto-Rooter began to experience unexpected weakness in its residential business' demand compared to internal projections. This weakness represents a break from the trends experienced in Q1. Preliminary results for commercial demand in Q2 continue to reflect improved trends but not enough to offset the lower residential demand.
Yahoo
09-06-2025
- Business
- Yahoo
3 Healthcare Stocks Skating on Thin Ice
From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. But speed bumps such as inventory destockings have persisted in the wake of COVID-19, and over the past six months, the industry has pulled back by 12.3%. This performance was noticeably worse than the S&P 500's 1.9% fall. Investors should tread carefully as the influx of venture capital has also ushered in a new wave of competition. Taking that into account, here are three healthcare stocks we're swiping left on. Market Cap: $48.91 billion With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE:BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide. Why Do We Think Twice About BDX? Annual sales growth of 4.1% over the last five years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand 10.5 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Below-average returns on capital indicate management struggled to find compelling investment opportunities BD is trading at $170.95 per share, or 11.4x forward P/E. If you're considering BDX for your portfolio, see our FREE research report to learn more. Market Cap: $8.28 billion With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services. Why Does CHE Fall Short? 4.6% annual revenue growth over the last five years was slower than its healthcare peers Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.9 percentage points Waning returns on capital imply its previous profit engines are losing steam At $568.39 per share, Chemed trades at 22x forward P/E. Read our free research report to see why you should think twice about including CHE in your portfolio, it's free. Market Cap: $10.73 billion Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE:RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure. Why Is RVTY Risky? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 8.8 percentage points Eroding returns on capital suggest its historical profit centers are aging Revvity's stock price of $91.03 implies a valuation ratio of 17.6x forward P/E. Check out our free in-depth research report to learn more about why RVTY doesn't pass our bar. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Chemed Corporation Holds Annual Meeting of Stockholders; Board Declares Quarterly Dividend
CINCINNATI, May 19, 2025--(BUSINESS WIRE)--Stockholders of Chemed Corporation (NYSE: CHE) today elected a slate of nine directors at the Company's 2025 annual stockholders' meeting. Stockholders ratified the continuation of PricewaterhouseCoopers LLP as the Company's independent accountants for 2025. Stockholders also approved Chemed's executive compensation and the Company's 2025 Stock Incentive Plan. Dividend Declared Following the stockholders' meeting, Chemed's Board of Directors declared a quarterly cash dividend of 50 cents per share on the Company's capital stock, payable on June 17, 2025, to stockholders of record as of May 29, 2025. This represents the 216th consecutive quarterly dividend paid to stockholders in Chemed's 54 years as a public company. Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, Chemed Corporation ( operates two wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation's largest provider of end-of-life hospice care, and Roto-Rooter is the nation's leading provider of plumbing and drain cleaning services. Statements in this press release or in other Chemed communications may relate to future events or Chemed's future performance. Such statements are forward-looking statements and are based on present information Chemed has related to its existing business circumstances. Investors are cautioned that such forward-looking statements are subject to inherent risk and that actual results may differ materially from such forward-looking statements. Further, investors are cautioned that Chemed does not assume any obligation to update forward-looking statements based on unanticipated events or changed expectations. View source version on Contacts Michael D. Witzeman(513) 762-6714 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
