Operating Margin

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Price: 450.5 USD -0.31%

Market Cap: 6.4B USD

14.6%

Declining

by 1.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

14.6%

Operating Income

$369.4m

Revenue

$2.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

14.6%

Operating Income

$369.4m

Revenue

$2.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Chemed Corp NYSE:CHE	6.4B USD	Loading...
US		CVS Health Corp NYSE:CVS	102B USD	Loading...
US		Cigna Corp NYSE:CI	72.9B USD	Loading...
US	C	Cigna Group XMUN:CGN	62B EUR	Loading...
DE		Fresenius SE & Co KGaA XETRA:FRE	26.6B EUR	Loading...
DE		Fresenius Medical Care AG XMUN:FME	21.3B EUR	Loading...
US		Laboratory Corporation of America Holdings NYSE:LH	22.8B USD	Loading...
US		Quest Diagnostics Inc NYSE:DGX	21.1B USD	Loading...
US		Guardant Health Inc NASDAQ:GH	13.9B USD	Loading...
DE	F	Fresenius Medical Care AG & Co KGaA XETRA:FME	10.5B EUR	Loading...
AU		Sonic Healthcare Ltd ASX:SHL	11.2B AUD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Chemed Corp
Glance View

Economic Moat

None

Market Cap

6.4B USD

Industry

Health Care

Chemed Corporation, a somewhat enigmatic yet resolutely steadfast entity, operates in the realms of hospice care and plumbing services, a duality that intrigues analysts and investors alike. Established through strategic foresight, Chemed has crafted a remarkably resilient business model by housing two distinct subsidiaries under its corporate umbrella: VITAS Healthcare and Roto-Rooter. VITAS Healthcare, which still stands as the nation's largest provider of end-of-life care, dominates the hospice sector by offering comprehensive palliative care services right at the patients' doorstep, aiming to ensure dignity and comfort during life's final stages. This subsidiary capitalizes on a combination of Medicare and Medicaid reimbursements as well as private insurances, which form the backbone of its revenue stream. Meanwhile, Roto-Rooter, a company with a name synonymous with plumbing repair and maintenance, fortifies Chemed's revenue streams through an entirely different channel. Known as a household name across America, Roto-Rooter offers an extensive range of services from emergency plumbing repair to water cleanup and restoration. With its franchise model combined with company-operated branches, Roto-Rooter generates income primarily through service fees. The dual nature of Chemed’s operational style—a blend of healthcare sensitivity and industrial pragmatism—not only ensures diversified income avenues but also exemplifies a pragmatic approach to risk management. This business strategy, deftly combining distinct yet robust sectors, allows Chemed to weather economic fluctuations that might impact one industry but not the other, ultimately creating a stable financial foundation for the company.

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CHE Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Chemed Corp
NYSE:CHE

Peer Comparison

Market Distribution

Other Profitability Ratios

Chemed Corp
Glance View

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Chemed Corp NYSE:CHE