Investment research report for CHE

Table of Contents

Executive Summary
Valuation Analysis
Industry and Competitors Analysis
Financial Analysis
Earnings Call Multi-Year Analysis
Financial Statements Multi Year
Insider Trading Analysis
Management Compensation Benchmark Analysis
Proxy Statement Analysis
News Analysis
Technical Indicators Analysis
Financial Statements Annual
Financial Statements Quarterly
Earnings Call Analysis

Executive Summary

Company Description

Chemed Corporation (CHE) is a leading provider of hospice and palliative care services through its VITAS segment, as well as plumbing and drain cleaning services through its Roto-Rooter segment. The company has a strong presence in the United States and has been operating for over 50 years.

Financial Performance

Chemed has demonstrated consistent financial performance, with steady revenue growth and healthy profitability margins. The company has a strong balance sheet, with ample liquidity and manageable debt levels. Chemed has a track record of generating positive cash flows, which it has used for strategic investments, share repurchases, and dividend payments.

Growth Strategies

The company’s growth strategies include:

  1. VITAS Segment: Expanding its hospice care services through organic growth initiatives, strategic acquisitions, and capitalizing on favorable demographic trends and increasing acceptance of hospice care.

  2. Roto-Rooter Segment: Leveraging its strong brand recognition, customer service, and internet presence to gain market share in the plumbing and drain cleaning services industry.

  3. Operational Excellence: Implementing initiatives to enhance operational efficiency, manage costs, and improve profitability across both business segments.

Investment Considerations

As a long-term investor, the following factors should be considered:

  1. Regulatory Environment: Changes in government regulations, particularly related to Medicare and Medicaid reimbursement rates, could impact the profitability of the VITAS segment.

  2. Competition: Both the hospice care and plumbing services industries are highly competitive, and Chemed’s ability to maintain its competitive advantages will be crucial for long-term success.

  3. Labor Challenges: Attracting and retaining skilled healthcare professionals and technicians has been a challenge for the company, and its ability to address these issues will be important for future growth.

  4. Valuation: Chemed’s current valuation may be considered premium, reflecting the market’s expectations for continued growth and profitability.

Overall, Chemed Corporation presents an attractive investment opportunity for long-term investors, with its diversified business model, strong financial position, and growth strategies. However, investors should carefully evaluate the potential risks and monitor the company’s performance against its stated goals.

Back to Table of Contents

Valuation Analysis

PE ratio

  • Low: 22.726951686280344
  • Base: 29.77924425142528
  • High: 36.831536816570214

PB ratio

  • Low: 5.6355049946863565
  • Base: 8.724751690863469
  • High: 11.81399838704058

EPS Growth

  • Low: 3.73%
  • Med: 13.77%
  • High: 19.27%

DPS Growth

  • Low: 5.70%
  • Med: 5.85%
  • High: 6.01%

FCF Growth

  • Low: -9.21%
  • Med: 15.72%
  • High: 23.47%

Value forecast by FCF

  • Low: 167.13
  • Med: 674.87
  • High: 1088.97

Value forecast by EPS

  • Low: 328.89
  • Med: 598.79
  • High: 840.15

Value forecast by DPS

  • Low: 368.53
  • Med: 371.91
  • High: 375.28

The current price for CHE is $541.83.

Price target for 18 months from now

  • Low: 492.33
  • Med: 540.60
  • High: 580.77

Price target for 4 years from now

  • Low: 409.84
  • Med: 538.55
  • High: 645.67

Price target for 10 years from now

  • Low: 211.86
  • Med: 533.62
  • High: 801.43

The net present value multiplier discounted at 10.32% gives the value of the stock as:
– Low: 0.39
– Med: 0.98
– High: 1.48

The upside/downside ratio is 0.50, and our rating is Sell.

Back to Table of Contents

Industry and Competitors Analysis

Based on the information provided, CHE (Chemed Corporation) operates in the medical care facilities industry, providing hospice and palliative care services through its VITAS segment, as well as plumbing and drain cleaning services through its Roto-Rooter segment.

Key Competitors in the Medical Care Facilities Industry

Some of CHE’s key competitors in the medical care facilities industry include:

  1. EHC (Encompass Health Corporation): A major player in the post-acute care space, offering inpatient rehabilitation, home health, and hospice services.

  2. PNTG (The Pennant Group, Inc.): Provides home health, hospice, and senior living services.

  3. ACHC (Acadia Healthcare Company, Inc.): Operates a network of behavioral healthcare facilities, including inpatient psychiatric hospitals and outpatient clinics.

  4. SEM (Select Medical Holdings Corporation): Operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers.

  5. ADUS (Addus HomeCare Corporation): Provides personal care, hospice, and home health services.

  6. EHAB (Enhabit, Inc.): Offers home health and hospice services, recently spun off from Encompass Health.

  7. ENSG (The Ensign Group, Inc.): Operates skilled nursing facilities, assisted living facilities, and provides home health and hospice services.

  8. INNV (InnovAge Holding Corp.): Manages and provides services through the Program of All-Inclusive Care for the Elderly (PACE) approach.

  9. NHC (National HealthCare Corporation): Operates skilled nursing facilities, assisted living facilities, and provides home health and hospice services.

  10. UHS (Universal Health Services, Inc.): Owns and operates acute care hospitals and behavioral health care facilities.

  11. SGRY (Surgery Partners, Inc.): Owns and operates a network of surgical facilities and provides ancillary services.

  12. HCSG (Healthcare Services Group, Inc.): Provides housekeeping, laundry, and dietary services to nursing homes, retirement complexes, and hospitals.

Competitive Positioning

In terms of competitive positioning, CHE’s VITAS segment appears to be a significant player in the hospice and palliative care market, while its Roto-Rooter segment operates in a different industry (plumbing and drain cleaning services). The financial metrics provided suggest that CHE has a relatively strong profitability and balance sheet position compared to some of its peers in the medical care facilities industry.

Back to Table of Contents

Chart of Competitors

"Chart of Competitors"

Back to Table of Contents

Financial Analysis

Financial Strength

The company has a healthy current ratio around 1.5-2.0, indicating good liquidity position. Debt levels seem manageable with debt/equity ratio around 0.1-0.4 range in recent years. Interest coverage ratio is very high (over 100x in many quarters), suggesting ability to comfortably service debt obligations.

Growth Potential

Revenue growth has been modest in the 0-5% range annually in recent years. Net income growth has been more volatile, ranging from declines to 40%+ increases year-over-year. The company seems to generate decent operating cash flow growth, though free cash flow growth is more uneven. Analyst estimates suggest around 5-10% revenue growth projected over the next few years.

Competitive Advantage

Returns on equity and assets have generally been in the 5-10% range, indicating a decent but not exceptional profitability profile. The hospice care and plumbing services businesses the company operates in likely provide some competitive advantages and recurring revenue streams.

Management Quality

Management seems prudent based on the manageable debt levels and generation of positive free cash flows. Share repurchases have been modest, suggesting capital allocation is focused more on internal investments.

Shareholder Friendliness

The company pays a very modest dividend, with payout ratios typically under 10% of earnings. However, the dividend has seen steady growth over the long-term.

Valuation

P/E ratios have ranged quite widely from the high teens to high 30s recently, suggesting valuation is fairly valued to potentially overvalued currently. Price/free cash flow metrics are also elevated, implying the market prices in significant growth expectations.

In summary, Chemed appears to be a financially solid company operating in relatively defensive industries. Growth prospects seem modest based on historical trends, though the market currently ascribes a premium valuation potentially pricing in rosier growth expectations. Shareholder returns have been tilted more towards capital appreciation over dividends historically.

Back to Table of Contents

Chart of Key Per Share Metrics

"Chart of Key Per Share Metrics"

Back to Table of Contents

Chart of Absolute Metrics

"Chart of Absolute Metrics"

Back to Table of Contents

Earnings Call Multi-Year Analysis

VITAS Segment

VITAS has faced significant challenges due to the COVID-19 pandemic, including disruptions in patient admissions, staffing shortages, and a shift in patient mix towards more community-based patients. However, the company has implemented various initiatives to address these challenges, such as hiring and retention programs, and is seeing signs of recovery in admissions and census growth.

The company remains optimistic about the long-term growth prospects of the hospice industry, driven by favorable demographic trends and increasing acceptance of hospice care. VITAS is well-positioned to capitalize on acquisition opportunities in the hospice industry, particularly as smaller providers struggle with staffing and operational challenges. Regulatory changes, such as potential increases in Medicare reimbursement rates and government support for hospice staffing, could positively impact VITAS’s profitability.

Roto-Rooter Segment

Roto-Rooter has demonstrated resilience during past crises and has been able to maintain strong market share and margins. The segment has benefited from robust demand in both residential and commercial segments, and the company expects continued growth and margin expansion. Roto-Rooter’s competitive advantages, such as its strong brand, customer service, and internet presence, position it well to gain market share in the current environment. The segment has faced challenges in hiring and retaining technicians, leading to increased labor costs and the need for price increases.

Financial Strength and Capital Allocation

Chemed has a strong balance sheet and cash flow generation, which provides financial flexibility to navigate challenges and invest in growth initiatives. The company has prioritized share repurchases as the primary use of excess cash flow, given the attractive free cash flow yield and limited acquisition opportunities at reasonable valuations. The management team appears disciplined in its capital allocation strategy, focusing on shareholder returns while remaining open to strategic acquisitions.

Operational Challenges

Labor shortages and inflationary pressures have been significant challenges for both segments, impacting margins and growth prospects. The company has implemented various strategies to address these challenges, including hiring and retention initiatives, price increases, and cost management efforts. The ability to effectively manage these operational challenges will be crucial for the company’s long-term success.

Overall, Chemed Corporation appears well-positioned for long-term growth, with a diversified business model, strong financial position, and proactive management team. However, investors should closely monitor the company’s ability to navigate the ongoing operational challenges, particularly in the VITAS segment, and its ability to capitalize on growth opportunities in both segments.

Back to Table of Contents

Financial Statements Multi Year

VITAS Segment

Revenue growth has been driven by increases in days of care and Medicare reimbursement rates. However, the segment is vulnerable to changes in government reimbursement policies and regulatory risks like Medicare caps. Profitability has been impacted by one-time expenses like healthcare worker retention bonuses, but adjusted EBITDA margins remain healthy in the 15-17% range. The segment faces intense competition and regulatory scrutiny in the hospice industry.

RotoRooter Segment

The RotoRooter segment has experienced modest revenue growth from increases in plumbing, excavation and water restoration services. Gross margins are around 52-53%, but facing some pressure from inflation and competition. The segment operates in a highly fragmented and competitive market.

Financial Position

Chemed has a strong balance sheet with ample liquidity from operating cash flows and available credit facilities. The company has reduced debt significantly by paying off term loans. Chemed has also maintained a consistent share repurchase program and increased dividends.

Risks

The key risks facing Chemed include:
– Regulatory changes impacting Medicare/Medicaid reimbursements for VITAS
– Staffing challenges and healthcare worker shortages
– Intense competition in both business segments
– Impact of the COVID-19 pandemic

Overall, Chemed has a diversified business model generating steady cash flows. While the VITAS segment faces headwinds, the RotoRooter segment is a stable cash generator. The company’s financial flexibility, shareholder returns, and ability to navigate challenges position it well for long-term investors.

Back to Table of Contents

Insider Trading Analysis

The CEO (MCNAMARA KEVIN J) and CFO (WILLIAMS DAVID PATRICK) have been actively trading their company shares over the past several years. They have exercised a significant number of stock options and made both purchases and sales of the company’s capital stock. Other key executives like Westfall, Witzeman, Hutton, and Lee have also been actively trading their shares, though to a lesser extent than the CEO and CFO. Insider ownership remains high, with the CEO and CFO collectively owning over 150,000 shares even after their recent transactions.

Recent Patterns

In the past year, the CEO has made several large option exercises and stock sales, totaling over 100,000 shares. This suggests he may be diversifying his holdings or taking some profits. The CFO has also been actively trading, with a mix of option exercises, stock purchases, and sales. His net trading activity has been more balanced compared to the CEO. Other executives have generally been making smaller, more routine transactions related to compensation and ownership changes.

Implications

The high level of insider trading activity, particularly by the CEO and CFO, suggests they remain confident in the company’s long-term prospects. However, the CEO’s recent sales may indicate a desire to diversify his personal holdings. For long-term investors, the continued insider ownership and trading activity is a positive sign that management is aligned with shareholder interests. However, the CEO’s sales could be a potential concern if they continue at a high pace. Short-term investors should monitor the trading patterns, as large sales by the CEO or CFO could potentially signal a near-term change in the company’s outlook or performance.

Overall, the insider trading data suggests a mix of positive and potentially cautionary signals. Continued close monitoring of the CEO and CFO’s trading activity would be prudent for both long-term and short-term investors in Chemed Corporation.

Back to Table of Contents

Management Compensation Benchmark Analysis

Chemed Corporation (CHE)

Based on the executive compensation details provided for Chemed Corporation (CHE), the key insights are:

  1. The base salary portion of total compensation for CHE’s executives is relatively low, averaging around 21.5% across all reported years and executives. This suggests that a significant portion of their total compensation is tied to variable pay components like stock awards and incentive plan compensation.

  2. The CEO and other top executives at CHE have a relatively low base salary compared to their total compensation. For example, in 2023, the CEO’s base salary was only 12.7% of his total compensation, while the CFO’s base salary was 23.9% of his total compensation.

  3. CHE does not pay cash bonuses to its executives. All variable pay appears to be in the form of stock awards and incentive plan compensation.

  4. The high proportion of variable pay components in the total compensation structure indicates that CHE’s executive compensation is designed to align the interests of executives with long-term shareholder value creation. The lack of cash bonuses and emphasis on equity-based awards likely incentivizes executives to focus on the company’s long-term performance.

Compared to the other companies provided (EHC, PNTG, ACHC, SEM, ADUS, EHAB), CHE’s executive compensation structure appears to be more heavily weighted towards variable, performance-based pay. The average base salary portion for these other companies ranges from around 9.5% (PNTG) to 33.2% (EHAB), suggesting that CHE’s approach is more focused on aligning executive pay with long-term shareholder value.

Overall, the data indicates that CHE’s executive compensation program is structured to incentivize and reward long-term performance, which is generally considered a best practice for aligning management’s interests with those of shareholders.

Back to Table of Contents

Proxy Statement Analysis

Executive Compensation and Alignment with Long-Term Shareholder Value Creation

The following analysis is based on the latest proxy statement of CHE:

Based on the information provided, the key insights regarding executive compensation and alignment with long-term shareholder value creation are:

  1. A significant portion of executive compensation (around 75-76%) is performance-based, tied to company and individual performance metrics. This aligns their interests with driving long-term growth and shareholder value.

  2. Long-term incentives in the form of stock options and performance share units encourage executives to focus on sustained stock price appreciation over the long run.

  3. Stock ownership guidelines require executives to hold a meaningful equity stake in the company, further aligning their interests with shareholders.

  4. The Compensation Committee aims to structure executive pay in a way that rewards long-term growth, attracts and retains top talent, and pays competitively.

  5. Clawback policies and restrictions on hedging/short-term trading discourage excessive risk-taking that could undermine long-term value creation.

In summary, the executive compensation program appears designed to incentivize executives to drive sustainable long-term growth and shareholder value creation through a balanced mix of fixed and performance-based pay, equity ownership requirements, and risk management policies. However, investors should review the specific performance metrics and targets to assess the rigor and alignment of the incentive plans.

Back to Table of Contents

News Analysis

Consistent financial performance

Chemed has regularly reported quarterly earnings results, often meeting or exceeding analyst estimates. This demonstrates the company’s ability to deliver consistent financial performance over time.

Dividend payments

Chemed has maintained a quarterly dividend payment, which is typically announced after the company’s annual stockholders’ meeting. A consistent dividend policy can be attractive for long-term investors.

Acquisitions and growth initiatives

Several releases mention acquisitions or expansion plans for Chemed’s hospice care business (VITAS) and plumbing services business (Roto-Rooter). Successful execution of these growth strategies could drive long-term value creation.

Share repurchase programs

Chemed’s board has authorized additional funds for share repurchases on multiple occasions, which could enhance shareholder value if executed effectively.

Conference presentations

Chemed regularly presents at various healthcare conferences, providing insights into the company’s strategies and outlook, which can be valuable for investors.

Overall, the news releases suggest that Chemed has a track record of consistent financial performance, shareholder-friendly policies (dividends and share buybacks), and growth initiatives through acquisitions and expansions. These factors could positively impact long-term investors if the company continues executing its strategies effectively.

Back to Table of Contents

Technical Indicators Analysis

Next Week Trading

The recent price action and technical indicators suggest a neutral to slightly bearish outlook for the next week. The TEMA (Triple Exponential Moving Average) has been declining, indicating a potential short-term downtrend. The RSI (Relative Strength Index) is in the neutral range, not signaling overbought or oversold conditions. A short-term trader may consider taking a cautious approach and waiting for clearer bullish signals before entering new long positions.

Resistance and Support Levels

The 20-day SMA (Simple Moving Average) and 50-day SMA are currently acting as dynamic resistance and support levels, respectively. A break above the 20-day SMA or below the 50-day SMA could signal the next directional move. The 200-day SMA, currently at 571.0655, may provide a longer-term support level.

Short-Term Investor

The recent decline in the TEMA and the neutral RSI reading suggest a cautious short-term outlook. Short-term investors may want to wait for a clearer bullish signal, such as a reversal in the TEMA trend or a breakout above the 20-day SMA, before considering new long positions. Alternatively, they may look for opportunities to enter short positions if the price breaks below the 50-day SMA.

Long-Term Investor

The long-term technical indicators, such as the 200-day SMA, remain in a bullish trend, suggesting a favorable long-term outlook for CHE. Long-term investors may consider this as an opportunity to accumulate positions, as the company’s fundamentals and long-term prospects appear strong. However, they should also monitor the shorter-term indicators for potential changes in the trend.

Overall, the technical analysis paints a mixed picture, with a neutral to slightly bearish short-term outlook but a more favorable long-term trend. Investors should carefully consider their risk tolerance and investment horizon when making decisions about CHE.

Back to Table of Contents

Chart of Valuation History

"Chart of Valuation History"

Back to Table of Contents

Financial Statements Annual

Financial Statements Annual 2024 Q2

VITAS Segment

VITAS revenue grew 9.4% in 2023 driven by a 7.4% increase in days of care and a 2.4% increase in average Medicare reimbursement rates, partially offset by a 0.5% impact from the reinstatement of Medicare sequestration.

VITAS adjusted EBITDA margin was 15.5% in 2023, down slightly from 15.2% in 2022 due to the $40 million retention bonus program implemented to address healthcare worker shortages.

VITAS has a high concentration of Medicare and Medicaid revenue (over 95%), making it vulnerable to changes in government reimbursement rates and policies.

VITAS faces regulatory risks related to Medicare and Medicaid billing requirements, as evidenced by the ongoing audit by the OIG and related claims.

RotoRooter Segment

RotoRooter revenue grew 1.7% in 2023, driven by increases in plumbing, excavation, and water restoration services, partially offset by a decline in drain cleaning.

RotoRooter adjusted EBITDA margin was 28.4% in 2023, down slightly from 29.3% in 2022 due to inflationary cost pressures.

RotoRooter faces intense competition from numerous local and regional competitors, which could impact its ability to maintain or grow market share.

Financial Position and Liquidity

Chemed has a strong financial position, with no debt outstanding as of December 31, 2023 and $4.0 billion in available credit under its revolving credit facility.

The company has demonstrated the ability to generate significant operating cash flow, which has allowed it to fund capital expenditures, share repurchases, and dividends.

Chemed’s leverage ratio of 0.06x as of December 31, 2023 provides ample financial flexibility to pursue strategic initiatives or weather potential economic downturns.

Overall, Chemed’s diversified business model, strong financial position, and market leadership in its core segments make it an attractive long-term investment opportunity. However, the regulatory risks facing the VITAS segment and the competitive pressures in the RotoRooter segment warrant close monitoring by investors.

Financial Statements Annual 2023 Q2

VITAS Segment

VITAS revenue decreased 4.7% in 2022 compared to 2021, driven by a 3.8% decrease in days of care, a 1.6% decrease in acuity mix, partially offset by a 0.8% increase in reimbursement rates. The decrease in revenue was also impacted by a 1.0% increase in Medicare cap and other contra-revenue changes.

VITAS implemented a $196 million licensed healthcare worker retention bonus program in 2022 to help attract and retain staff during the industry-wide healthcare worker shortage.

VITAS’ adjusted EBITDA margin (excluding Medicare cap and retention bonus) is estimated to be 16.3% to 16.6% in 2023.

RotoRooter Segment

RotoRooter revenue increased 6.3% in 2022 compared to 2021, driven by increases across all major service lines.

RotoRooter’s adjusted EBITDA margin is expected to be 29.3% to 29.5% in 2023.

Overall Company

Chemed’s 2023 earnings per diluted share, excluding certain non-cash and one-time items, is estimated to be in the range of $2.075 to $2.110.

The company has ample liquidity with $404 million of unused credit facility as of December 31, 2022, and expects to continue its share repurchase program.

The company faces risks related to regulatory changes, labor shortages, and the ongoing impact of the COVID-19 pandemic, which could affect its future performance.

In summary, VITAS faces headwinds from the pandemic’s impact on staffing and reimbursement, while RotoRooter continues to perform well. The company has a strong balance sheet and is taking actions to navigate the current challenges, but regulatory and pandemic-related risks remain.

Financial Statements Annual 2022 Q2

VITAS Segment

VITAS is highly dependent on Medicare and Medicaid for over 90% of its revenue. Any changes in the rate or methods of these government payments could have a material adverse impact on VITAS’s net patient service revenue and profits.

VITAS is subject to Medicare payment limitations, including the inpatient cap and the overall Medicare cap. Exceeding these caps can result in repayment obligations that could negatively impact profitability.

VITAS faces intense competition from other hospice providers, which could limit its ability to maintain or increase its market position and adversely affect its profitability.

VITAS’s success is highly dependent on its brand reputation and ability to maintain relationships with patient referral sources. Loss of these relationships could adversely impact growth and profitability.

VITAS operates in a heavily regulated industry, and any failure to comply with applicable laws and regulations could result in significant penalties, fines, and even exclusion from government programs.

RotoRooter Segment

RotoRooter operates in a highly competitive and fragmented industry, facing intense competition from numerous local and regional competitors. Its ability to effectively compete is critical to its success.

RotoRooter’s operations are subject to various laws and regulations, including franchise and licensing requirements. Failure to comply could expose the company to potential claims and compliance costs.

RotoRooter’s success is dependent on its ability to attract and retain skilled employees, particularly licensed plumbers. Difficulties in hiring and retaining such talent could adversely impact the business.

RotoRooter’s brand reputation is a key asset, and any adverse publicity, litigation, or negative online reviews could negatively impact consumer willingness to use its services.

General Insights

Chemed has historically carried debt to finance its operations, and its ability to service this debt and maintain compliance with debt covenants is important for its financial flexibility.

The COVID-19 pandemic has had a significant impact on Chemed’s businesses, resulting in shifts in demand, changes in referral patterns, workforce challenges, and increased costs. The long-term effects of the pandemic remain uncertain.

Chemed’s operations are subject to various legal and regulatory risks, including potential liability related to false claims, anti-kickback laws, and other healthcare regulations. Adverse outcomes from these matters could have a material impact.

Cybersecurity risks, including potential data breaches and system disruptions, pose an ongoing threat that could disrupt Chemed’s operations and damage its reputation.

Overall, Chemed’s two main business segments, VITAS and RotoRooter, face distinct operational and regulatory challenges that could impact the company’s long-term performance. Investors should closely monitor the company’s ability to navigate these risks and maintain its competitive positions in their respective markets.

Back to Table of Contents

Financial Statements Quarterly

Financial Statements Quarterly 2024 Q2

Revenue Growth

Consolidated service revenues and sales increased 5.2% year-over-year, driven by a 14.0% increase at VITAS offset by a 5.8% decrease at RotoRooter. The increase at VITAS was primarily due to a 11.5% increase in days of care and a 2.6% increase in the weighted average Medicare reimbursement rate, partially offset by a 0.6% negative impact from acuity mix shift.

Profitability

Consolidated gross margin improved to 34.6% in Q1 2024 from 33.8% in Q1 2023, driven by VITAS where gross margin increased to 23.2% from 18.3% due to higher revenues and the expiration of the healthcare worker retention bonus program. RotoRooter’s gross margin declined to 51.9% from 53.1% due to the revenue decline. VITAS’ after-tax earnings as a % of revenue increased to 12.4% from 8.0%, while RotoRooter’s declined to 17.4% from 19.1%.

Liquidity and Capital Structure

The company repaid the remaining $213 million balance on its term loan in April 2023, reducing total borrowing capacity to $4.5 billion. As of March 31, 2024, the company had $4.048 billion of unused credit facility capacity available. Management believes the company’s liquidity and sources of capital are satisfactory for its foreseeable needs.

Acquisitions

RotoRooter completed the acquisitions of two franchises in Q1 2024 for a total of $73 million.

Regulatory Matters

VITAS is undergoing an audit by the Office of the Inspector General related to the provision of elevated level-of-care hospice services, which could result in a potential repayment obligation.

Overall, the financial statements show VITAS continuing to drive revenue growth and profitability improvements, while RotoRooter faces some headwinds. The company maintains a strong liquidity position to fund operations and strategic initiatives.

Financial Statements Quarterly 2024 Q1

VITAS Segment

VITAS revenue grew 12.5% year-over-year in Q3 2023 and 8.0% year-to-date, driven by a 9.4% increase in days of care and a 2.7% increase in the weighted average Medicare reimbursement rate. VITAS gross margin improved to 24.0% in Q3 2023 from 19.1% in Q3 2022, mainly due to increased revenue and the expiration of the healthcare worker retention bonus program. VITAS net income margin declined to 9.9% year-to-date from 10.9% in the prior year period, primarily due to $180 million in after-tax expense related to the healthcare worker retention bonus program. VITAS is estimated to achieve 9.3-9.5% revenue growth in 2023, with an adjusted EBITDA margin of 15.4-15.7% prior to Medicare cap impacts.

RotoRooter Segment

RotoRooter revenue grew 0.4% year-over-year in Q3 2023 and 2.7% year-to-date, driven by increases in plumbing, excavation, and water restoration services. RotoRooter gross margin was 52.9% in Q3 2023 compared to 53.4% in Q3 2022, mainly due to relatively flat revenue and increased advertising costs. RotoRooter net income margin improved to 21.8% in Q3 2023 from 20.7% in Q3 2022, partially due to a tax benefit from the realignment of its state and local corporate tax structure. RotoRooter is forecasted to achieve 16-20% revenue growth in 2023 with an adjusted EBITDA margin of 28.4-28.6%.

Financial Position and Liquidity

Chemed has a strong balance sheet, with $264 million in cash and cash equivalents and $4.0 billion in available credit under its revolving credit facility as of September 30, 2023. The company made $750 million in prepayments on its term loan in Q1 2023 and paid off the remaining $213 million balance in April 2023, reducing its total debt. Chemed is in compliance with all financial covenants under its credit facility and expects to remain in compliance going forward.

Capital Allocation and Shareholder Returns

Chemed repurchased $27.8 million in shares during the first nine months of 2023, with $601 million remaining under its current share repurchase authorization. The company has a history of increasing its dividend, with the most recent quarterly dividend of $0.40 per share.

Overall, Chemed’s diversified business model, strong financial position, and consistent cash flow generation make it an attractive long-term investment opportunity. The company’s focus on growth in its VITAS hospice and RotoRooter service lines, along with prudent capital allocation, position it well for the future.

Financial Statements Quarterly 2023 Q4

VITAS Segment

VITAS revenue growth was driven by a 6.2% increase in days of care and a 2.7% increase in the weighted average Medicare reimbursement rate, partially offset by a 1.0% impact from the reinstatement of Medicare sequestration. VITAS gross margin declined from 23.6% to 18.0% primarily due to a $128 million expense recorded for the licensed healthcare worker retention bonus program. VITAS adjusted EBITDA margin (prior to Medicare cap and retention bonus accruals) is estimated to be 16.5% to 17.0% for the full year 2023. VITAS is currently estimating $11 million in Medicare cap billing limitations for 2023.

RotoRooter Segment

RotoRooter revenue growth was 0.2% in Q2 2023 and 3.8% in the first half of 2023, driven by increases in excavation and water restoration services, partially offset by declines in drain cleaning. RotoRooter gross margin declined slightly from 53.2% to 52.3% in Q2 2023, mainly due to the revenue decline. RotoRooter’s adjusted EBITDA margin is expected to be 28.0% to 28.5% for the full year 2023.

Consolidated Results

Consolidated revenue grew 4.2% in Q2 2023 and 4.9% in the first half of 2023. Consolidated gross margin declined from 36.6% to 32.4% in Q2 2023, primarily due to the VITAS retention bonus expense. The company has significantly reduced its long-term debt, repaying the remaining $213 million balance on the term loan in April 2023. The company has ample liquidity, with $4.0 billion of unused credit facility capacity as of June 30, 2023.

Guidance and Outlook

VITAS revenue is estimated to grow 8.5% to 9.5% in 2023, with an adjusted EBITDA margin of 16.5% to 17.0% (prior to Medicare cap and retention bonus accruals). RotoRooter revenue is forecasted to grow 10% to 20% in 2023, with an adjusted EBITDA margin of 28.0% to 28.5%. The company expects 2023 adjusted earnings per diluted share to be in the range of $19.90 to $20.10, excluding certain non-cash and one-time items.

Overall, the financial statements indicate that Chemed Corporation’s two main business segments, VITAS and RotoRooter, are performing well and the company has a strong financial position to support its growth and operational initiatives.

Financial Statements Quarterly 2023 Q3

Revenue Growth

Consolidated service revenues and sales increased 5.6% year-over-year, driven by a 7.9% increase at RotoRooter and a 3.8% increase at VITAS. The increase at VITAS was primarily due to a 3.0% increase in days of care and a 2.9% increase in the weighted average Medicare reimbursement rate, partially offset by a 200 basis point impact from the reinstatement of the 20% Medicare sequestration cut.

Profitability

Consolidated gross margin decreased from 36.6% to 33.8%, mainly due to a $10.9 million expense at VITAS for the licensed healthcare worker retention bonus program. VITAS’ gross margin decreased from 24.0% to 18.3%, while RotoRooter’s gross margin increased slightly from 52.8% to 53.1%. VITAS’ net income decreased by $11.7 million, primarily due to the healthcare worker retention bonus and the Medicare sequestration impact. RotoRooter’s net income increased, driven by higher revenue. Corporate expenses increased by 12.6%, mainly due to a $1.9 million increase in stock-based compensation.

Cash Flow and Liquidity

Net cash provided by operating activities decreased by $40.6 million, primarily due to a $33.9 million increase in accounts receivable. The company made $750 million in prepayments on its $1 billion term loan in the first quarter and plans to pay the remaining $213 million on April 28, 2023. As of March 31, 2023, the company had approximately $4.05 billion of unused lines of credit available under its revolving credit facility.

Acquisitions and Investments

VITAS purchased the hospice assets of one Florida provider for $12.4 million in 2022. RotoRooter completed the acquisition of three franchises and related assets in New Jersey for $22.9 million in 2022.

Overall, the financial statements show solid revenue growth, particularly at RotoRooter, but profitability was impacted by the healthcare worker retention bonus program at VITAS and higher corporate expenses. The company maintains a strong liquidity position and continues to invest in strategic acquisitions.

Back to Table of Contents

Earnings Call Analysis

Earnings Call Analysis 2024 Q2

VITAS Segment

VITAS continues to show strong operating metrics with increased admissions, patient census, and licensed healthcare workforce. This suggests sustainable growth. The recent acquisition of Covenant Health and Community Services is expected to be accretive and provide opportunities for further growth and expansion. VITAS margins are expected to align with the company’s historical levels as the acquired business is integrated. The hospice M&A environment remains active, and Chemed is well-positioned to pursue additional acquisitions, particularly in restricted states like Florida.

Roto-Rooter Segment

Roto-Rooter is facing some headwinds, including weaker consumer demand, macroeconomic concerns, and disruptions in internet marketing. The commercial business has seen a more pronounced decline compared to the residential business, partly due to the company’s focus on meeting pandemic-driven demand rather than cultivating commercial relationships. Roto-Rooter is implementing strategies to improve commercial revenue performance, such as increasing touch points with key accounts and training technicians on upselling opportunities. The temporary increase in marketing spend, which impacted margins, has been reduced, and the company expects margin improvement in the second quarter. Despite the current challenges, the company remains confident in Roto-Rooter’s long-term growth potential, given its strong brand, customer service, and market position.

Overall Insights

The company reiterated its annual guidance, suggesting the Q1 results were within the expected range, despite being slightly below internal expectations. The company is actively pursuing acquisition opportunities, particularly in the hospice segment, and believes the current environment presents favorable conditions for such deals. The management team appears to be taking appropriate actions to address the challenges in both business segments, and the long-term growth prospects for the company remain intact.

Overall, the conference call suggests that Chemed is well-positioned to navigate the current operating environment and continue its growth trajectory, particularly in the VITAS segment. The company’s focus on acquisitions and operational improvements in the Roto-Rooter segment indicate a proactive approach to driving long-term value for shareholders.

Earnings Call Analysis 2024 Q1

VITAS Segment

VITAS has seen strong growth in admissions and average daily census (ADC), surpassing pre-pandemic levels. This is attributed to the successful 12-month retention and hiring program launched in 2022. The company expects continued growth in VITAS revenue (9-10%) and ADC (6.5-7%) in 2024, driven by successful hiring and retention of licensed staff. VITAS margins are expected to remain above pre-pandemic levels (17.8-18.3% in 2024), though there are concerns about potential margin compression due to wage increases outpacing reimbursement. The company is confident in the long-term sustainability of VITAS’ growth, citing favorable industry trends like aging demographics and increased acceptance of hospice care. Management seems to have a good handle on managing Medicare Cap issues, which have historically been a concern for the VITAS segment.

Roto-Rooter Segment

Roto-Rooter has faced headwinds in consumer sentiment and spending, leading to a decline in call volume (13% in Q4 2023). The company expects modest demand growth for Roto-Rooter in 2024, with revenue growth of 3.5-4% and margin improvement (28.7-29.1%). Management believes Roto-Rooter is well-positioned to gain market share by leveraging its competitive advantages, such as brand awareness, customer response time, and internet presence. The company is focused on improving commercial revenue, which declined in Q4 2023, and expects to regain this business as demand issues abate.

Overall Insights

The company has demonstrated the ability to navigate challenging industry conditions, particularly in the VITAS segment, and appears to have a solid plan for continued growth. Management seems to have a good understanding of the industry dynamics and is making strategic decisions to position the company for long-term success. Investors should closely monitor the company’s ability to maintain VITAS’ growth trajectory and Roto-Rooter’s margin improvement, as well as any potential risks related to wage inflation and Medicare Cap issues. The company’s guidance and long-term outlook appear reasonable, but investors should remain vigilant and continue to evaluate the company’s performance against its stated goals.

Earnings Call Analysis 2023 Q4

VITAS Segment

VITAS has seen a strong recovery in operational metrics, with admissions up 7.5% and Average Daily Census (ADC) increasing 9.4% year-over-year. The company’s retention and hiring program launched in July 2022 has been successful in stabilizing staffing and expanding patient capacity, which has translated into increased admissions and census growth. The company expects continued sequential ADC growth in Q4 2023 and is confident in the sustainability of this growth trajectory going forward.

Margins for VITAS are expected to be higher than the pre-pandemic levels of 17.5-18%, but the exact level is still to be determined as the business normalizes post-pandemic. Potential regulatory changes around hospice oversight and reviews could impact the business, but the company seems prepared to address these challenges.

Roto-Rooter Segment

Roto-Rooter is facing headwinds from softer consumer spending, with call volumes down 13.6% year-over-year. The company has offset some of the demand softness through improved conversion rates and pricing actions. The performance of the Roto-Rooter segment in 2024 will depend on the broader economic conditions and the pace of recovery in consumer spending. The company is cautiously optimistic about Roto-Rooter’s prospects, noting that the deferred maintenance work will eventually need to be done, positioning the business for a strong recovery.

Capital Allocation

The company is earning higher interest income on its cash balances due to the rising interest rate environment, which has reduced the urgency for immediate share repurchases. The company will continue to be opportunistic with share repurchases, but is also open to pursuing acquisitions to deploy capital and increase returns.

Overall, the company appears to be navigating the post-pandemic environment well, with a focus on operational execution and prudent capital allocation. The long-term investor should closely monitor the company’s ability to sustain the VITAS recovery and the Roto-Rooter segment’s response to the evolving economic conditions.

Earnings Call Analysis 2023 Q3

VITAS Segment

The company has implemented a successful retention and hiring program that has expanded its licensed healthcare staff by 784 professionals since July 2022. This has driven strong growth in admissions and average daily census.

VITAS is on a path to return to pre-pandemic operating metrics in early 2024, with revenue growth expected around 9% in 2023 and adjusted EBITDA margins around 16.5-17%.

The company sees opportunities to continue expanding VITAS’ market share by leveraging its scale and competitive advantages.

Roto-Rooter Segment

Roto-Rooter is facing headwinds from softening consumer demand, with a 13% decline in call volume compared to the prior year quarter.

The company has offset some of the demand weakness through improved conversion rates at the call centers and with technicians, but the impact has not been fully mitigated.

The company is taking a conservative approach in its 2023 guidance for Roto-Rooter, assuming continued modest impact from consumer spending headwinds.

Roto-Rooter’s strong brand, customer response time, and internet presence are seen as core competitive advantages that should help it weather the current environment.

Overall

The company is focused on protecting margins and reengineering costs rather than just cutting expenses across the board.

Share repurchases remain a priority for capital deployment, though the company is also earning a decent return on its cash holdings given the current interest rate environment.

The company is cautious about acquisitions in the VITAS segment, preferring to focus on organic growth through its retention and hiring program rather than overpaying for small, unprofitable hospice providers.

The key takeaway is that the company appears to be navigating the current environment well, with a focus on operational execution and prudent capital allocation. The long-term investor should closely monitor the company’s ability to sustain the VITAS recovery and Roto-Rooter’s resilience in the face of consumer spending headwinds.

Earnings Call Analysis 2023 Q2

Hiring and Retention Efforts

The company has implemented a targeted hiring and retention bonus program at VITAS to expand its licensed healthcare professional staff, especially nurses. This has led to a faster-than-expected increase in staffing levels, which should help drive admissions and census growth going forward.

After pandemic-related disruptions, VITAS is seeing sequential improvements in admissions and average daily census (ADC). The management is optimistic about continuing this positive trajectory as staffing levels increase.

Margin Pressure and Reimbursement Concerns

VITAS is facing margin pressure due to the reinstatement of Medicare sequestration cuts and the costs associated with the hiring and retention program. There are also concerns about the adequacy of the proposed Medicare reimbursement rate increase, which may not fully reflect the actual inflation experienced by the industry.

Roto-Rooter Performance

The Roto-Rooter segment has shown strong revenue growth, outpacing pre-pandemic levels, driven by both commercial and residential demand. However, the company is facing some challenges in retaining experienced managers.

Acquisition Opportunities

The proposed regulatory changes, such as increased oversight and penalties, may create acquisition opportunities for VITAS, but the management does not see significant strategic value in acquiring providers that are not actively caring for patients.

Medicare Cap Runway

The company’s Medicare Cap exposure has improved as admissions and high-acuity care have increased, though California remains a market of concern due to its high reimbursement rates.

Overall, the company appears to be making progress in addressing the pandemic-related challenges, but the management will need to carefully navigate the margin pressures and reimbursement concerns to maintain long-term profitability and growth.

Earnings Call Analysis 2023 Q1

VITAS Segment

VITAS implemented a hiring and retention bonus program in July 2022 to address staffing challenges, adding 275 licensed healthcare workers in H2 2022. This is expected to have a near-term margin impact as new hires ramp up, but should drive improved capacity and census growth.

VITAS revenue growth is expected to be 6-7% in 2023, with the majority of census growth coming in H2 as staffing increases. However, the 2% Medicare sequestration cut will be a 75 bps headwind.

VITAS adjusted EBITDA margins are expected to be 16.3-16.6% in 2023, down from 17.8% in 2019 pre-pandemic, due to the sequestration impact and ramp-up of new hires. Margins are expected to improve as census grows.

VITAS is focused on methodically growing clinical capacity to meet increasing hospice demand, which should drive improved retention and efficiency over time.

Roto-Rooter Segment

Roto-Rooter revenue growth is expected to be 5-5.5% in 2023, with some potential pullback in discretionary residential services like excavation.

Roto-Rooter is well-positioned competitively, with advantages in brand, response time, and 24/7 service. However, the segment faces some challenges in retaining key branch managers and technicians.

Roto-Rooter’s adjusted EBIT margin is expected to be 29.3-29.5% in 2023, an improvement from prior year.

Capital Allocation

The company plans to accelerate repayment of $50 million in term debt by end of Q1 2023 to reduce interest expense, then focus excess cash flow on share repurchases.

M&A and Competition

The hospice M&A market remains active, with a wide range of valuations depending on the target’s ability to retain and grow clinical capacity. VITAS is not seeing many large platform acquisition opportunities.

Competitive landscape remains challenging, with private equity-backed providers also struggling to retain staff, which can impact their operating performance.

Overall, the company is taking proactive steps to address staffing challenges at VITAS, which should position it for improved census growth and margins over time. Roto-Rooter continues to perform well, though faces some discretionary demand headwinds. The company’s capital allocation priorities appear prudent given the interest rate environment.

Earnings Call Analysis 2022 Q4

Staffing challenges persist

The company is facing an industry-wide shortage of licensed healthcare workers, particularly nurses, which is disrupting operations. The company has implemented a $38 million hiring and retention bonus program to address this.

Gradual recovery in senior housing referrals

The company is seeing a gradual recovery in hospice referrals from senior housing facilities, which had declined significantly during the pandemic. This is a positive sign for the VITAS segment.

Roto-Rooter performing well

The Roto-Rooter segment is seeing strong demand and pricing power, allowing it to expand margins despite inflationary pressures. The company is confident in Roto-Rooter’s ability to continue growing.

Cautious guidance

The company is providing guidance, but notes the challenges in accurately modeling due to the ongoing uncertainty around the pandemic, inflation, and potential recession. This suggests a cautious outlook.

Implied analyst questions

The analysts are probing for more details on the staffing initiatives, the sustainability of the Roto-Rooter performance, and expectations for wage inflation going forward. This indicates these are key areas of focus for investors.

Overall, the key insights are that the company is navigating significant operational challenges, but sees opportunities for recovery and growth, particularly in Roto-Rooter. However, the cautious guidance suggests the company remains wary of the broader economic and industry uncertainties.

Earnings Call Analysis 2022 Q3

Staffing challenges

Both VITAS and Roto-Rooter are facing challenges in hiring and retaining skilled healthcare professionals and technicians. This is impacting their ability to fully meet demand and grow their businesses. The company has implemented targeted hiring and retention bonus programs to address this.

Shift in patient mix

VITAS has seen a shift towards more community-based patients (nursing homes, assisted living, home-based) and fewer hospital referrals. This has impacted their revenue and acuity mix, but the company views it as a strategic shift to serve patients earlier in their disease trajectory.

Macro environment impact

The company is cautious about the potential impact of inflation, economic recession, and continued pandemic disruptions on their business. They have adjusted their guidance accordingly, though they remain optimistic about their long-term growth prospects.

Roto-Rooter performance

Roto-Rooter’s revenue growth has moderated, partly due to staffing constraints, but the company believes it is well-positioned to gain market share during any economic downturn.

Financial strength

Chemed has a strong balance sheet and cash flow, which it is using to invest in staffing and retention initiatives to support future growth.

Overall, the key insights suggest that Chemed is navigating a challenging operating environment, but is taking proactive steps to position its businesses for long-term success. The company’s financial strength and strategic focus on serving patients and customers provide reasons for optimism for long-term investors.

Earnings Call Analysis 2022 Q2

Labor challenges

Both VITAS and Roto-Rooter are facing significant labor challenges in hiring and retaining licensed healthcare professionals and technicians, respectively. This is leading to higher turnover and increased compensation costs.

Inflationary pressures

The companies are seeing increased inflationary pressures, particularly on labor costs. They have implemented price increases to offset these pressures, and plan to monitor inflation metrics for potential further price hikes.

VITAS performance

VITAS saw a 4.1% decline in average daily census, primarily due to pandemic-related disruptions. However, the company is seeing signs of recovery in senior housing referrals. VITAS is focused on hiring and retention initiatives to manage staffing levels.

Roto-Rooter performance

Roto-Rooter saw strong revenue growth, particularly in the commercial segment, as the business environment normalizes post-pandemic. The company is also focused on increasing technician headcount to meet service demand.

Guidance and outlook

The companies provided limited quantitative guidance, but indicated that they expect continued inflationary pressures and labor challenges to impact performance throughout 2022. The management team seems cautiously optimistic about the long-term outlook.

Overall, the key insights highlight the operational challenges the companies are facing, particularly around labor and inflation, and the need for continued vigilance and adaptation to navigate the current environment. Long-term investors should closely monitor the companies’ ability to manage these headwinds and maintain their competitive positions.

Earnings Call Analysis 2022 Q1

Labor shortages and inflation are major challenges for both VITAS and Roto-Rooter businesses:

VITAS is struggling to hire and retain licensed healthcare workers, leading to disruptions in patient admissions and care. This is exacerbated by the lag in Medicare reimbursement rates catching up to rising labor costs. Roto-Rooter is also facing challenges in hiring and retaining technicians, leading to the need for significant wage increases and price hikes to pass on those costs.

The company is taking steps to address the labor challenges:

VITAS is focused on both hiring and retention initiatives to build up its clinical staff. Roto-Rooter is aggressively raising wages and prices to attract and retain technicians.

The company’s conservative balance sheet and financial position is seen as a strength:

This allows Chemed to weather the current disruptions and potentially be opportunistic in acquiring distressed hospice assets. The management team believes the current environment will create acquisition opportunities as other, more highly leveraged providers struggle.

Timing of Medicare reimbursement increases is a key issue for VITAS:

The lag between rising labor costs and the annual reimbursement update is putting pressure on VITAS’ margins. Management expects this to continue to be a headwind in 2022, but believes it will be partially remedied in future reimbursement adjustments.

Roto-Rooter’s business remains very strong, with robust demand across residential and commercial segments:

The company is focused on passing through price increases to offset inflation and retain its technician workforce. Management is optimistic about Roto-Rooter’s growth prospects and ability to gain market share in the current environment.

In summary, the key challenges are labor shortages and inflation, but the company appears well-positioned financially to weather the storm and potentially capitalize on acquisition opportunities. The timing of Medicare reimbursement increases remains a critical issue for the VITAS business.

Earnings Call Analysis 2021 Q4

Labor challenges

Both VITAS and Roto-Rooter are facing significant labor challenges, including staffing shortages, high turnover, and wage inflation pressures. This is a major operational challenge that the companies are working to manage.

Hospice referral sources

The disruption to senior housing occupancy and hospice referrals from that channel has been a major headwind for VITAS. The company is seeing some stabilization and improvement, but the pace and timeline for a full recovery in this referral source remains uncertain.

Pricing power and margin management

Roto-Rooter has been able to pass through price increases to offset inflationary pressures, leveraging its strong brand and customer demand. VITAS has a natural hedge against labor inflation through the Medicare/Medicaid reimbursement increases, but there is a 6-month lag.

Capital allocation

The company continues to prioritize share repurchases over acquisitions, given the attractive free cash flow yield. They remain open to acquisitions but view share buybacks as the better risk-adjusted return.

Regulatory environment

There are positive signs of potential government support for the hospice industry, including proposals for increased funding for hospice staffing. However, the return of the Medicare sequestration cuts remains a risk.

Overall, the companies appear to be navigating the pandemic-related challenges well, but the labor and referral source issues remain significant uncertainties going forward. The companies’ ability to manage these pressures will be key for long-term investors.

Earnings Call Analysis 2021 Q3

Roto-Rooter’s performance

Roto-Rooter has shown resilience during past crises like 9/11 and the Great Recession, and has been able to maintain market share and margin gains even after the crises. The company is confident that Roto-Rooter will continue to expand market share and maintain strong margins post-pandemic, based on its competitive advantages. Roto-Rooter’s residential demand has remained elevated, and commercial demand is normalizing back to pre-pandemic levels. The company expects Roto-Rooter’s revenue growth to be 15-15.5% for the full year 2021, with an EBITDA margin of 28-29%.

VITAS performance and outlook

VITAS has faced disruptions in senior housing occupancy and related hospital referrals due to the pandemic. However, the company is seeing signs of stabilization and improvement in admissions, with admissions exceeding discharges in Q2 2021 for the first time since the pandemic began. The company expects steady improvement in senior housing referrals in the second half of 2021, with further acceleration in Q4. VITAS’ full-year 2021 revenue is expected to decline around 4.5%, with an adjusted EBITDA margin of 18.3% prior to Medicare Cap. The company is focused on retaining and recruiting staff, which has been a challenge across the industry.

Capital allocation and M&A

The company has been actively repurchasing shares, with $312 million remaining under the current authorization. Acquisitions remain expensive, and the company is focused on share repurchases and dividends as the primary uses of free cash flow.

Overall, the company appears to be navigating the pandemic well, with Roto-Rooter’s performance offsetting some of the challenges faced by VITAS. The long-term investor should closely monitor the recovery in senior housing referrals for VITAS and the sustainability of Roto-Rooter’s strong performance.

Back to Table of Contents

The information provided on this blog is for informational purposes only and should not be considered as financial advice. You should consult with a qualified financial professional before making any investment decisions. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal.