We came across a bullish thesis on Chemed Corporation on The Buyside Guy’s Substack by The Buyside Guy. In this article, we will summarize the bulls’ thesis on CHE. Chemed Corporation's share was trading at $464.00 as of September 2nd. CHE’s trailing and forward P/E were 23.88 and 18.48, respectively according to Yahoo Finance. 5 States with the Highest Cancer Rates Tyler Olson/Shutterstock.com Chemed Corp. (CHE), based in Ohio and publicly listed since 1971, operates two distinct businesses: VITAS, the ...

Core Insights - ServiceTitan has announced a strategic partnership with Roto-Rooter, enhancing Roto-Rooter's operations with ServiceTitan's technology to drive growth and profitability [1][2] - The partnership aims to unlock new revenue opportunities and improve operational efficiency across Roto-Rooter's extensive network [2][3] - Roto-Rooter, a leader in plumbing and water cleanup services, operates in 121 company-owned territories and over 345 franchise territories in the U.S. and Canada [6] Company Overview - ServiceTitan is a cloud-based software platform designed to support trades businesses, providing tools for business management and customer experience enhancement [5] - Roto-Rooter, founded in 1935, is the largest provider of plumbing, drain cleaning, and water cleanup services in North America, with a strong commitment to technological innovation [6][3] Partnership Impact - The partnership will leverage ServiceTitan's technology across Roto-Rooter's national call centers and branch locations, aiming to set a new standard for service excellence in the industry [4][3] - Roto-Rooter's field employees and office staff will benefit from increased efficiency and automation, allowing them to focus more on customer service [3][2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2025 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-8351 Large Accelerated Filer x Accelerated Filer o Non-accelerated Filer o Smaller Reporting Company o CHEMED CORPORATION (Exact name of registrant as specified in its char ...

Core Insights - Chemed missed expectations on both revenue and earnings for Q2, leading to a 9% decline in share price [1] - The company reported a 4% increase in sales but a significant 22% drop in adjusted earnings per share (EPS) [2] - Management has lowered the 2025 EPS guidance from $25.20 to $22.15, indicating a 4% decline from the previous year [2] - CEO of Vitas Healthcare, Nick Westfall, announced his resignation, adding to the uncertainty surrounding the company [2] Revenue and Profitability - Chemed's Q2 revenue growth was steady at 4%, but profitability issues were evident across all business segments [3] - Vitas Healthcare experienced a 4% revenue growth but faced Medicare cap billing limitations, resulting in a 24% decline in earnings [4] - Excluding one-time impacts, Vitas's adjusted EBITDA remained flat for the quarter [4] Roto-Rooter Performance - Roto-Rooter, Chemed's plumbing business, achieved only 1% sales growth while net income fell by 20% due to increased marketing costs [6] - The company faces challenges from advertising pressures, particularly from Google, which affects visibility in free search areas [6] - Despite these challenges, Roto-Rooter remains the largest plumbing company in North America, warranting investor attention [7] Future Outlook - Chemed is currently navigating several challenges but is valued at 20 times free cash flow, suggesting potential for a turnaround [7]

Financial Data and Key Metrics Changes - VITAS net revenue was $396.2 million in 2025, an increase of 5.8% compared to the prior year period, driven by a 6.1% increase in days of care and a 4.2% increase in Medicare reimbursement rates [12] - Adjusted EBITDA excluding Medicare Cap totaled $66.8 million in the quarter, essentially flat with 2024, with an adjusted EBITDA margin of 16.2%, down 163 basis points from the prior year [15][16] - Roto Rooter revenue increased by 6% in 2025 compared to the same period in 2024, falling short of internal expectations [8] Business Line Data and Key Metrics Changes - Admissions at DITAS totaled 17,545, a 1.2% improvement from the same period in 2024, with a 4.9% increase when excluding patient transfers from VITAS [5] - Roto Rooter branch residential revenue totaled $156.4 million, a 9% increase from the prior year, driven by a 16.9% increase in water restoration [17] - Roto Rooter branch commercial revenue totaled $53.2 million, a 4.4% increase from the prior year, with a 24.4% increase in excavation revenue [17] Market Data and Key Metrics Changes - Hospital-directed admissions increased by 9.1%, while home-based patient admissions declined by 6.2%, nursing home admissions declined by 2.9%, and assisted living facilities admissions declined by 1.4% compared to the prior year [6] - The consolidated Florida program is estimated to end the 2025 Medicare cap year with a $19 million billing limitation, with management expecting no significant Medicare cap billing limitation for the 2026 cap year [6][7] Company Strategy and Development Direction - The company remains confident in the growth potential and strategic direction of both businesses despite underperformance in 2025 [5] - VITAS is adjusting its patient mix in Florida to mitigate Medicare cap issues, which may cause some disruption in operating metrics but is expected to lead to higher growth rates in the long term [10] - Roto Rooter is focusing on improving its competitive advantages to return to a steadier growth trajectory [11] Management's Comments on Operating Environment and Future Outlook - Management commented on the impact of the Liberation Day tariff announcement on consumer confidence and spending, which affected Roto Rooter's performance in April and May [9] - The company is optimistic about the overall prospects for both businesses, with VITAS working on initiatives to improve admissions and Roto Rooter focusing on enhancing its service offerings [10][11] Other Important Information - The company estimates $28.2 million in Medicare cap billing limitations for calendar 2025, with $19 million related to the Florida combined program [23] - Roto Rooter's adjusted EBITDA totaled $48.6 million, a decrease of 18.7% compared to the prior year quarter, with a margin of 21.8% [18] Q&A Session Summary Question: Impact of Medicare cap and future margins - Management discussed the levers being pulled to ensure no carryover impact from the Medicare cap after Q3, emphasizing hospital admissions and the moderation of the patient mix bubble created by the Community Access Program [28][29] Question: Factors driving underperformance in admissions - Management noted that the increase in admissions was intentionally moderated to avoid providing services without reimbursement, focusing on hospital admissions instead [38][40] Question: Roto Rooter management issues and recovery - Management indicated that local management issues have been resolved, and the recovery seen in June and July is attributed to improved operational performance rather than management changes [49][50] Question: Tax rate favorability in Q2 - The decline in the effective tax rate was attributed to accounting factors related to stock option exercises, with fewer exercises in the quarter leading to a larger tax deduction [65][66] Question: Confidence in short stay patient mix - Management expressed confidence in achieving a higher mix of short stay patients through improved operational emphasis and reputation [70][71] Question: Capital deployment and acquisition strategy - The company remains open to acquisitions at the right valuation and location, with no change in strategy despite current business challenges [98]

Financial Data and Key Metrics Changes - VITAS net revenue was $396.2 million in Q2 2025, representing a 5.8% increase compared to the prior year period, driven by a 6.1% increase in days of care and a 4.2% increase in Medicare reimbursement rates [13][14] - Adjusted EBITDA excluding Medicare Cap totaled $66.8 million in the quarter, essentially flat with 2024, with an adjusted EBITDA margin of 16.2%, down 163 basis points from the prior year [16][17] - Roto Rooter revenue increased 6% in 2025 compared to the same period in 2024, falling short of internal expectations [8][9] Business Line Data and Key Metrics Changes - DITAS admissions totaled 17,545, a 1.2% improvement from the same period in 2024, with a 4.9% increase when excluding patient transfers to VITAS [5][6] - Roto Rooter branch residential revenue was $156.4 million, a 9% increase from the prior year, driven by a 16.9% increase in water restoration [20] - Roto Rooter adjusted EBITDA decreased by 18.7% to $48.6 million, with an adjusted EBITDA margin of 21.8%, reflecting inefficiencies in the labor force due to lower residential revenues [21][22] Market Data and Key Metrics Changes - Hospital-directed admissions increased by 9.1%, while home-based patient admissions declined by 6.2%, nursing home admissions declined by 2.9%, and assisted living facilities admissions declined by 1.4% compared to the prior year [6][10] - The consolidated Florida program is projected to end the 2025 Medicare cap year with a $19 million billing limitation, with management expecting no significant Medicare cap billing limitation for the 2026 cap year [6][7] Company Strategy and Development Direction - The company remains confident in the growth potential and strategic direction of both businesses despite underperformance in Q2 2025 [5][11] - VITAS is adjusting its patient mix in Florida to mitigate Medicare cap issues, which may cause some disruption in operating metrics but positions the company for long-term growth [11][12] - Roto Rooter is focusing on improving its competitive advantages and is optimistic about returning to a steadier growth trajectory [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the weak admissions in April and May were influenced by external factors affecting consumer confidence and spending [10][11] - The company is optimistic about the overall prospects for both businesses, with VITAS management actively reviewing expenses to offset lower EBITDA margins [17][21] - Management expects to update assumptions regarding rates and the overall outlook for the 2026 Medicare cap year in the third quarter earnings release [7][26] Other Important Information - The company estimates $28.2 million in Medicare cap billing limitations for calendar 2025, with no limitations expected in the fourth quarter related to the Florida combined program [26] - Roto Rooter is forecasted to have a revenue increase of 1.25% to 1.75% in 2025 compared to 2024, with an adjusted EBITDA margin expected to be 23.5% to 24.5% [27] Q&A Session Summary Question: What measures are being taken to avoid Medicare cap issues in 2026? - Management emphasized hospital admissions and the moderation of the patient mix bubble created by the Community Access Program as key levers to avoid cap issues [31][32] Question: What is the outlook for admissions and revenue growth? - Management indicated that while admissions were slightly below expectations, they are confident in achieving a higher mix of short-stay patients moving forward [70][72] Question: How are local management issues affecting Roto Rooter's recovery? - Management stated that past local management issues have been resolved, and the focus is now on improving conversion rates and addressing market challenges [51][56] Question: What is the impact of the recent tax rate changes? - The effective tax rate decline was attributed to accounting factors related to stock option exercises, which are not expected to persist [67][68] Question: Is there a change in the company's acquisition strategy? - The company remains open to acquisitions at the right valuation and location, with no change in overall strategy despite current challenges [100][102]

Chemed (CHE) came out with quarterly earnings of $4.27 per share, missing the Zacks Consensus Estimate of $4.78 per share. This compares to earnings of $5.47 per share a year ago. These figures are adjusted for non- recurring items. Chemed, which belongs to the Zacks Medical - Outpatient and Home Healthcare industry, posted revenues of $618.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.45%. This compares to year-ago revenues of $595.88 million. The company has toppe ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Chemed Corporation's Q2 2025 results show increased consolidated revenue but a decline in GAAP and Adjusted Diluted EPS, with mixed performance across its VITAS and Roto-Rooter segments [Consolidated Operating Results](index=1&type=section&id=Consolidated%20operating%20results) Chemed Corporation reported a 3.8% increase in consolidated revenue to $618.8 million for Q2 2025, while GAAP Diluted EPS decreased by 23.2% to $3.57 and Adjusted Diluted EPS decreased by 21.9% to $4.27 Consolidated Operating Results (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 Value | Change YoY | | :----------------------- | :------------ | :--------- | | Revenue | $618.8 million | +3.8% | | GAAP Diluted EPS | $3.57 | -23.2% | | Adjusted Diluted EPS | $4.27 | -21.9% | [VITAS Segment Operating Results](index=1&type=section&id=VITAS%20segment%20operating%20results) VITAS Healthcare segment saw a 5.8% increase in Net Patient Revenue to $396.2 million, driven by a 6.1% increase in Average Daily Census (ADC), but Net Income and Adjusted EBITDA margin declined VITAS Segment Key Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 Value | Change YoY | | :---------------------------------- | :------------ | :--------- | | Net Patient Revenue | $396.2 million | +5.8% | | Average Daily Census (ADC) | 22,318 | +6.1% | | Admissions | 17,545 | +1.2% | | Net Income (excl. discrete items) | $38.2 million | -23.5% | | Adjusted EBITDA (excl. Medicare Cap) | $66.8 million | Essentially flat | | Adjusted EBITDA margin (excl. Medicare Cap) | 16.2% | -163 bps | [Roto-Rooter Segment Operating Results](index=1&type=section&id=Roto-Rooter%20segment%20operating%20results) Roto-Rooter segment revenue increased slightly by 0.6% to $222.6 million, but Net Income and Adjusted EBITDA declined significantly, leading to a 517-basis point drop in Adjusted EBITDA margin Roto-Rooter Segment Key Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 Value | Change YoY | | :---------------------------------- | :------------ | :--------- | | Revenue | $222.6 million | +0.6% | | Net Income (excl. discrete items) | $33.7 million | -20.4% | | Adjusted EBITDA | $48.6 million | -18.7% | | Adjusted EBITDA margin | 21.8% | -517 bps | [Segment Performance](index=2&type=section&id=Segment%20Performance) This section details the individual financial and operational performance of the VITAS Healthcare and Roto-Rooter segments, highlighting revenue drivers, profitability, and specific challenges [VITAS Healthcare Corporation](index=2&type=section&id=VITAS) VITAS's Q2 2025 net revenue grew by 5.8% to $396.2 million, driven by increased days-of-care and Medicare reimbursement rates, but faced significant negative impacts from acuity mix shift and increased Medicare Cap billing limitations VITAS Net Revenue and Growth Drivers (Q2 2025) | Metric | Value | Impact on Revenue Growth | | :------------------------------------ | :------------ | :----------------------- | | Net Revenue | $396.2 million | +5.8% YoY | | Days-of-care increase | 6.1% | Primary driver | | Medicare reimbursement rate increase | ~4.2% | Primary driver | | Acuity mix shift | N/A | -71 bps | | Medicare Cap & contra revenue changes | N/A | -379 bps | - Total VITAS admissions increased **4.9%** in Q2 2025, excluding one-time admissions from the Covenant Health acquisition in Q2 2024[6](index=6&type=chunk) VITAS Medicare Cap Billing Limitation Accrual | Period | Accrued Amount | | :-------------------------------- | :------------- | | Q2 2025 | $16.4 million | | Q2 2024 | $1.4 million | - The **$16.4 million** Medicare Cap billing limitation in Q2 2025 includes a **$9.5 million** catch-up for the first six months of the 2025 Medicare Cap year in Florida, **$4.8 million** for the current quarter in Florida, and **$2.1 million** for other VITAS programs[9](index=9&type=chunk) VITAS Financial Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (bps) | | :---------------------------------- | :------ | :------ | :----------- | | Average revenue per patient per day | $207.03 | N/A | +350 bps | | Gross margin (excl. Medicare Cap) | 22.3% | 24.07% | -177 bps | | Adjusted EBITDA (excl. Medicare Cap) | $66.8 million | $65.6 million | Essentially flat | | Adjusted EBITDA margin (excl. Medicare Cap) | 16.2% | 17.83% | -163 bps | [Roto-Rooter](index=3&type=section&id=Roto-Rooter) Roto-Rooter's Q2 2025 revenue increased marginally by 0.6% to $222.6 million, driven by commercial excavation and water restoration, but profitability significantly declined with gross margin falling to 49.0% and Adjusted EBITDA decreasing by 18.7% Roto-Rooter Revenue Breakdown (Q2 2025 vs. Q2 2024) | Revenue Type | Q2 2025 Value | Change YoY | | :-------------------------- | :------------ | :--------- | | Total Quarterly Revenue | $222.6 million | +0.6% | | Branch Commercial Revenue | $53.2 million | +4.4% | | - Plumbing | N/A | -2.9% | | - Excavation | N/A | +24.4% | | - Water Restoration | N/A | +11.7% | | - Drain Cleaning | N/A | -1.1% | | Branch Residential Revenue | $156.4 million | +0.9% | | - Drain Cleaning | N/A | -5.8% | | - Plumbing | N/A | -1.1% | | - Excavation | N/A | -4.3% | | - Water Restoration | N/A | +16.9% | | Independent Contractors | $17.4 million | -4.4% | Roto-Rooter Financial Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (bps) | | :-------------------- | :------ | :------ | :----------- | | Gross margin | 49.0% | 52.9% | -390 bps | | SG&A expenses | $60.5 million | $57.35 million | +5.6% | | Adjusted EBITDA | $48.6 million | $59.8 million | -18.7% | | Adjusted EBITDA margin | 21.8% | 26.97% | -517 bps | [Consolidated Financial Position](index=3&type=section&id=Chemed%20Consolidated) This section outlines Chemed's liquidity, capital resources, and share repurchase activities, reflecting its financial health and capital allocation strategies [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Chemed maintained a strong liquidity position with **$249.9 million** in cash and cash equivalents and no outstanding debt, complemented by significant undrawn borrowing capacity Chemed Liquidity (as of June 30, 2025) | Metric | Value | | :-------------------------- | :------------ | | Cash and cash equivalents | $249.9 million | | Current or long-term debt | $0 | | Undrawn borrowing capacity | ~$404.5 million | [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) During Q2 2025, Chemed repurchased **75,000 shares** of its stock for **$42.9 million** at an average cost of **$572.61 per share**, with approximately **$182.6 million** remaining under authorization Share Repurchase Activity (Q2 2025) | Metric | Value | | :-------------------------------- | :------------ | | Shares repurchased | 75,000 | | Total cost of repurchases | $42.9 million | | Cost per share | $572.61 | | Remaining authorization (June 30, 2025) | ~$182.6 million | [Full Year 2025 Guidance](index=4&type=section&id=Full%20Year%202025%20Guidance) This section provides Chemed's updated financial outlook for the full year 2025, including revenue and Adjusted EBITDA margin projections for VITAS and Roto-Rooter, and revised consolidated EPS guidance [VITAS Guidance](index=4&type=section&id=VITAS%20full%20year%202025%20revenue) VITAS projects full-year 2025 revenue (prior to Medicare Cap) to increase by **7.5% to 8.5%** compared to 2024, with an Adjusted EBITDA margin (prior to Medicare Cap) of **18.2% to 18.7%**, and estimates **$28.2 million** in Medicare Cap billing limitations VITAS Full Year 2025 Guidance | Metric | Guidance | | :------------------------------------ | :---------------- | | Revenue increase (prior to Medicare Cap) | 7.5% to 8.5% YoY | | Adjusted EBITDA margin (prior to Medicare Cap) | 18.2% to 18.7% | | Estimated Medicare Cap billing limitations | $28.2 million | - Management does not expect a significant level of Medicare Cap billing limitation in the Florida combined program for the 2026 Cap Year, assuming the 2025 rate differential does not recur and supported by successful Florida CON VITAS applications and expansion activities[24](index=24&type=chunk) [Roto-Rooter Guidance](index=4&type=section&id=Roto-Rooter%20is%20forecasted) Roto-Rooter forecasts a **1.25% to 1.75%** revenue increase in 2025 compared to 2024, with an expected Adjusted EBITDA margin of **23.5% to 24.5%** Roto-Rooter Full Year 2025 Guidance | Metric | Guidance | | :-------------------------- | :---------------- | | Revenue increase | 1.25% to 1.75% YoY | | Adjusted EBITDA margin | 23.5% to 24.5% | [Consolidated EPS Guidance](index=4&type=section&id=Based%20on%20the%20above,%20full%20year%202025%20earnings) Chemed revised its full-year 2025 Adjusted Diluted EPS guidance to a range of **$22.00 to $22.30**, down from the previously issued range of **$24.95 to $25.45**, assuming a **25.3%** effective tax rate and **14.7 million** diluted shares Consolidated Full Year 2025 Adjusted Diluted EPS Guidance | Metric | 2025 Guidance | Previous 2025 Guidance | 2024 Reported | | :-------------------------------- | :-------------- | :--------------------- | :------------ | | Adjusted Diluted EPS | $22.00 to $22.30 | $24.95 to $25.45 | $23.13 | | Assumed Effective Tax Rate | 25.3% | N/A | N/A | | Assumed Diluted Share Count | 14.7 million | N/A | N/A | [Executive Management Changes](index=4&type=section&id=Executive%20Management%20Departure) This section announces key leadership transitions within Chemed Corporation, specifically the departure of VITAS's Chairman and CEO and the appointment of his successor [Leadership Transition at VITAS](index=4&type=section&id=Executive%20Management%20Departure) Nicholas M. Westfall, Executive Vice President of Chemed and Chairman and CEO of VITAS, is departing the company on **December 1, 2025**, after **16 years** of service, with Joel L. Wherley succeeding him as CEO of VITAS - Nicholas M. Westfall, Executive Vice President of Chemed and Chairman and CEO of VITAS, will depart the company on **December 1, 2025**, after **16 years**[28](index=28&type=chunk) - Joel L. Wherley, current VITAS President and Chief Operating Officer, will succeed Mr. Westfall as Chief Executive Officer of VITAS[29](index=29&type=chunk)[30](index=30&type=chunk) [Corporate Information](index=5&type=section&id=Corporate%20Information) This section provides details on Chemed's upcoming conference call, an overview of its business segments, explanations of non-GAAP financial measures, and a safe harbor statement regarding forward-looking information [Conference Call Details](index=5&type=section&id=Conference%20Call) Chemed will host a conference call and webcast on **Wednesday, July 30, 2025, at 10 a.m. ET** to discuss quarterly results and provide a business update, with a taped replay available afterward - Chemed will host a conference call and webcast on **Wednesday, July 30, 2025, at 10 a.m. ET** to discuss quarterly results and provide a business update[32](index=32&type=chunk) - Participants can access the live webcast via Chemed's investor relations website or a dedicated hosting website, with teleconference registration also available[32](index=32&type=chunk)[33](index=33&type=chunk) [Company Business Overview](index=5&type=section&id=Company%20Business%20Overview) Chemed Corporation operates two distinct businesses: VITAS Healthcare Corporation, a major provider of end-of-life hospice care, and Roto-Rooter, the largest commercial and residential plumbing and drain cleaning services provider in the nation - VITAS Healthcare Corporation provides daily hospice services to patients with severe, life-limiting illnesses, focusing on comfort and pain relief[35](index=35&type=chunk) - Roto-Rooter offers plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors, and franchisees in the US, Canada, Indonesia, Singapore, and the Philippines[36](index=36&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Chemed uses non-GAAP measures like EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS to help investors evaluate operating results, compare performance, and assess future financial obligations, which should not be considered substitutes for GAAP-compliant figures - Chemed uses non-GAAP measures (EBITDA, Adjusted EBITDA, Adjusted Diluted EPS) to provide insights into operating results, compare performance, and assess future financial requirements[37](index=37&type=chunk) - These non-GAAP measures exclude components not derived in accordance with GAAP and should not be considered in isolation or as a substitute for GAAP measures[37](index=37&type=chunk) [Forward-Looking Statements](index=6&type=section&id=SAFE%20HARBOR%20STATEMENT%20UNDER%20THE%20PRIVATE%20SECURITIES%20LITIGATION%20REFORM%20ACT%20OF%201995%20REGARDING%20FORWARD-LOOKING%20INFORMATION) The press release contains forward-looking statements subject to inherent uncertainties, risks, and changes in circumstances, including those related to Medicare Cap, reimbursement rates, patient mix, and demand for services, with actual results potentially differing materially - Forward-looking statements are based on assumptions and are subject to known and unknown risks, uncertainties, and contingencies, including impacts of laws, Medicare Cap, reimbursement rates, patient mix, and demand for services[38](index=38&type=chunk) - Actual results and financial conditions may differ materially from forward-looking statements due to inherent uncertainties and risks described in SEC filings[39](index=39&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents Chemed Corporation's detailed financial statements, including consolidated statements of income, balance sheets, cash flows, and segment-level performance data, providing a comprehensive view of the company's financial health and operational results [Consolidated Statements of Income](index=7&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The consolidated statements of income show a **3.8%** increase in service revenues and sales for the three months ended June 30, 2025, compared to the prior year, but net income decreased by **26.0%** to **$52.5 million**, and diluted EPS decreased by **23.2%** to **$3.57** Consolidated Statements of Income (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Service revenues and sales | $618,798 | $595,880 | +3.8% | | Income from operations | $68,084 | $88,125 | -22.7% | | Net income | $52,493 | $70,887 | -26.0% | | Diluted Earnings Per Share | $3.57 | $4.65 | -23.2% | [Consolidated Balance Sheets](index=8&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Chemed's total assets were **$1.718 billion**, a slight decrease from **$1.735 billion** in 2024, with cash and cash equivalents increasing while total liabilities and stockholders' equity saw minor reductions Consolidated Balance Sheets (as of June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :------------------------------------ | :------------------ | :------------------ | :--------- | | Cash and cash equivalents | $249,904 | $222,903 | +12.1% | | Total current assets | $491,377 | $464,612 | +5.8% | | Total Assets | $1,717,847 | $1,734,984 | -1.0% | | Total current liabilities | $263,886 | $261,753 | +0.8% | | Total Liabilities | $519,362 | $527,687 | -1.6% | | Total Stockholders' Equity | $1,198,485 | $1,207,297 | -0.7% | [Consolidated Statements of Cash Flows](index=9&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities increased to **$171.4 million** from **$162.1 million** in the prior year, with significant reductions in cash used by investing and financing activities, leading to a positive increase in cash and cash equivalents Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Net cash provided by operating activities | $171,350 | $162,066 | +5.7% | | Net cash used by investing activities | $(29,155) | $(112,874) | -74.1% | | Net cash used by financing activities | $(70,641) | $(90,247) | -21.7% | | Increase/(Decrease) in Cash and Cash Equivalents | $71,554 | $(41,055) | N/A | | Cash and cash equivalents at end of period | $249,904 | $222,903 | +12.1% | [Consolidating Statements of Income (Segment-level)](index=10&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20CONSOLIDATING%20STATEMENTS%20OF%20INCOME) Segment-level income statements for Q2 and H1 2025 show VITAS revenue growth but a decline in net income for both VITAS and Roto-Rooter compared to the prior year, with the Corporate segment consistently reporting a net loss Consolidating Statements of Income (Three Months Ended June 30, 2025) | Segment | Service Revenues and Sales (in thousands) | Net Income/(Loss) (in thousands) | | :-------------- | :-------------------------------------- | :------------------------------- | | VITAS | $396,201 | $38,219 | | Roto-Rooter | $222,597 | $31,914 | | Corporate | $- | $(17,640) | | Consolidated | $618,798 | $52,493 | Consolidating Statements of Income (Six Months Ended June 30, 2025) | Segment | Service Revenues and Sales (in thousands) | Net Income/(Loss) (in thousands) | | :-------------- | :-------------------------------------- | :------------------------------- | | VITAS | $803,600 | $88,249 | | Roto-Rooter | $462,141 | $71,858 | | Corporate | $- | $(35,857) | | Consolidated | $1,265,741 | $124,250 | [Consolidating Summaries of EBITDA (Segment-level)](index=12&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20CONSOLIDATING%20SUMMARIES%20OF%20EBITDA) Segment-level EBITDA reconciliations show that VITAS's Adjusted EBITDA was essentially flat in Q2 2025, while Roto-Rooter's Adjusted EBITDA declined significantly, with both segments experiencing a decrease in Adjusted EBITDA for the six months compared to the prior year Consolidating Summaries of Adjusted EBITDA (Three Months Ended June 30) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------- | :------------------ | :------------------ | :--------- | | VITAS | $50,417 | $65,600 | -23.1% | | Roto-Rooter | $48,629 | $59,801 | -18.7% | | Corporate | $(3,715) | $(5,511) | +32.7% | | Consolidated | $95,331 | $119,890 | -20.5% | Consolidating Summaries of Adjusted EBITDA (Six Months Ended June 30) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------- | :------------------ | :------------------ | :--------- | | VITAS | $118,406 | $123,912 | -4.4% | | Roto-Rooter | $107,814 | $120,451 | -10.5% | | Corporate | $(9,197) | $(9,851) | +6.7% | | Consolidated | $217,023 | $234,512 | -7.4% | [Reconciliation of Adjusted Net Income](index=14&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20RECONCILIATION%20OF%20ADJUSTED%20NET%20INCOME) The reconciliation shows that Adjusted Net Income for Q2 2025 was **$62.7 million**, down from **$83.4 million** in Q2 2024, with Adjusted Diluted EPS also decreasing to **$4.27** from **$5.47**, reflecting adjustments for non-cash expenses Reconciliation of Adjusted Net Income (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Net income as reported | $52,493 | $70,887 | -26.0% | | Adjusted net income | $62,721 | $83,419 | -24.8% | | Diluted Earnings Per Share As Reported | $3.57 | $4.65 | -23.2% | | Adjusted Diluted Earnings Per Share | $4.27 | $5.47 | -22.0% | [Operating Statistics for VITAS Segment](index=15&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20OPERATING%20STATISTICS%20FOR%20VITAS%20SEGMENT) VITAS operating statistics for Q2 2025 show an increase in total days of care by **6.1%** and Average Daily Census (ADC) by **6.1%**, with admissions up **1.2%** and a significant increase in average length of stay to **137.1 days** VITAS Operating Statistics (Three Months Ended June 30) | Metric | 2025 | 2024 | Change (%) | | :------------------------------------ | :--------- | :--------- | :--------- | | Net Revenue ($000) | $396,201 | $374,558 | +5.8% | | Total Days of care | 2,030,913 | 1,914,284 | +6.1% | | Average Daily Census ("ADC") | 22,318 | 21,036 | +6.1% | | Total Admissions | 17,545 | 17,334 | +1.2% | | Total Discharges | 17,845 | 15,898 | +12.2% | | Average length of stay (days) | 137.1 | 100.6 | +36.3% | | Median length of stay (days) | 20.0 | 18.0 | +11.1% | VITAS Net Revenue as a Percent of Total Before Medicare Cap Allowance (Q2 2025) | Category | Percentage | | :-------------------------- | :--------- | | Homecare | 85.2% | | Inpatient | 7.9% | | Continuous care | 5.6% | | Other | 1.3% | [Footnotes to Financial Statements](index=17&type=section&id=CHEMED%20CORPORATION%20AND%20SUBSIDIARY%20COMPANIES%20FOOTNOTES%20TO%20FINANCIAL%20STATEMENTS) The footnotes detail significant credits and charges included in the results of operations for 2025 and 2024, such as stock option expense, amortization of reacquired franchise agreements, long-term incentive compensation, and acquisition expenses, which are crucial for understanding non-GAAP financial measures Significant Credits/(Charges) in Q2 2025 (in thousands) | Item | VITAS | Roto-Rooter | Corporate | Consolidated | | :------------------------------------ | :---- | :---------- | :-------- | :----------- | | Stock option expense | $- | $- | $(9,216) | $(9,216) | | Amortization of reacquired franchise agreements | $- | $(2,352) | $- | $(2,352) | | Long-term incentive compensation | $- | $- | $(853) | $(853) | | Pretax impact on earnings | $- | $(2,352) | $(10,069) | $(12,421) | | After-tax impact on earnings | $- | $(1,806) | $(8,422) | $(10,228) | - VITAS has **35 Medicare provider numbers**; for the current cap year, **28** have a Medicare cap cushion greater than **10%**, **three** have a cushion between **0% and 10%**, and **four** have a Medicare cap liability[60](index=60&type=chunk)

Core Viewpoint - Astrana Health, Inc. (ASTH) is currently positioned as a better value investment compared to Chemed (CHE) based on Zacks Rank and various valuation metrics [3][7]. Valuation Metrics - ASTH has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while CHE has a Zacks Rank of 4 (Sell) [3]. - The forward P/E ratio for ASTH is 14.68, significantly lower than CHE's forward P/E of 20.43, suggesting that ASTH is undervalued relative to CHE [5]. - ASTH's PEG ratio is 0.85, indicating better expected earnings growth compared to CHE's PEG ratio of 2.09, which suggests overvaluation [5]. - ASTH has a P/B ratio of 1.74, while CHE's P/B ratio is 5.83, further indicating that ASTH is more attractively priced [6]. Value Grades - ASTH has received a Value grade of A, reflecting its strong valuation metrics, whereas CHE has a Value grade of C, indicating it is less favorable for value investors [6].

Wall Street expects a year-over-year decline in earnings on higher revenues when Chemed (CHE) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the othe ...