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Is this Large Market Cap Stock target price reasonable for Chemed Corp. (NYSE:CHE)?

The company in question is, Chemed Corp. (NYSE:CHE) currently with a stock price of 139.79 (-0.26% today). The market cap for Chemed Corp. is 2262.02, and is in the sector Healthcare, and Home Health Care industry. The target price for Chemed Corp. is 158.5. Currently Chemed Corp. is trading with a P/E of 22.25, and a forward P/E of 18.04. Average volume for Chemed Corp. is 99.04 and so far today it is 39577.

Performance in the last year for Chemed Corp. has been 8.79%. For EPS growth, Chemed Corp. has seen a growth of 13.70%, and is looking to grow in the next year to 7.10%. More long term stats show that EPS growth has been 12.20% over the last five years and could be 10.00% for the next five years. Chemed Corp. has seen sales growth quarter over quarter at 2.20%, with EPS growth quarter over quarter at -4.50%. The 20-day simple moving average is 1.14%, with the 200-day simple moving average coming to 3.03%.

Since the IPO date for Chemed Corp. on the 05/03/1973, Chemed Corp. has seen performance year to date to be -5.92%. With Chemed Corp. trading at 139.79, the dividend yield is 0.74%, and the EPS is 6.3.

So could Chemed Corp., be undervalued? Well as said before P/E is 22.25. The PEG is 2.22, P/S is 1.44 and the P/B is at 4.99. The P/cash is 129.26, with P/free cash flow at 19.88.

Chemed Corp. ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.8. This is with long term debt/equity at 0.3, and total debt/equity at 0.32.

In terms of margins, Chemed Corp. has a gross margin of 29.60%, an operating margin of 11.60% and a profit margin of 6.90%.Payout ratio for Chemed Corp. is 14.80%. Return on assets come to 12.40% with return on investment coming to 19.00%.

Insider ownership for Chemed Corp., is at 2.40% and institutional ownership comes to 97.70%. Outstanding shares are at 16.14. While shares float is 15.72. The float short is currently 9.92%, and short ratio is 15.75.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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