Chemed Corporation’s stock was trading at $464.00 as of September 2nd, with trailing and forward P/E ratios of 23.88 and 18.48, respectively. The company operates two businesses, VITAS and Roto-Rooter, with VITAS contributing 58% of revenue, growing at around 9%.

Chemed’s stock recently dropped due to a Medicare cap issue in Florida, but management has strategies in place to address this issue by increasing admissions and optimizing patient mix. The approval of a new program is expected to reduce cap risk by creating a $30 million cushion for 2026.

Chemed benefits from a strong financial position, generating $250–$367 million in free cash flow annually. With the 2025 cap issue considered a one-off, the stock is trading near multi-year troughs, offering a compelling risk/reward profile with a potential 26% upside.

Despite short-term headwinds, Chemed Corporation’s operational resilience and cash strength remain intact. The Buyside Guy’s bullish thesis on CHE highlights the Medicare cap issue and management’s strategies to mitigate risks. The stock has depreciated roughly 20% since April 2025, but the long-term value proposition is still intact.

Read more at Yahoo Finance: Chemed Corporation (CHE): A Bull Case Theory