Chemed Corp CHE

Competitive advantage analysis · healthcare

Corporate Default
Overall moat score
76/100
Strong

About Chemed Corp

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates through VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, … Full CHE analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.88), demonstrating pricing resilience across cycles.
  • ROIC Sustainably Above Peers ROIC at 92.3th percentile exceeds peers and WACC, demonstrating superior capital allocation.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
79

Where CHE ranks in Medical Care Facilities

Chemed Corp ranks #2 of 58 scored companies in Medical Care Facilities by moat score — the top 3%. The widest moat in the group is Encompass Health Corporation (EHC) at 77/100.

Moat scores for companies ranked near CHE in Medical Care Facilities
# Company Moat score Rating
1 Encompass Health Corporation EHC 77/100 Strong
2 Chemed Corp CHE 76/100 Strong
3 Nutex Health Inc. NUTX 74/100 Moderate
4 Tenet Healthcare Corporation THC 74/100 Moderate
5 National HealthCare Corporation NHC 73/100 Moderate
6 Universal Health Services, Inc. UHS 71/100 Moderate
7 Concentra Group Holdings Parent CON 70/100 Moderate
8 HCA Healthcare, Inc. HCA 70/100 Moderate
9 DaVita Inc. DVA 70/100 Moderate

See every General Corporate company ranked by moat score →

How CHE scores on the Corporate Default defenses

Pricing Power

Score 79 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 71 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 89 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 82 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 74 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 60 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding CHE's moat

What is Chemed Corp's moat score?

Chemed Corp (CHE) scores 76 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #2 of 58 scored companies in Medical Care Facilities, the top 3%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 57 companies in Medical Care Facilities. Its strongest defense is Customer Stickiness (89/100) and its weakest is Scale & Market Position (60/100).

How does Chemed Corp compare with other Medical Care Facilities companies?

Chemed Corp ranks #2 of 58 scored companies in Medical Care Facilities by moat score. The widest moat in Medical Care Facilities is Encompass Health Corporation (EHC) at 77/100. The companies ranked closest are Encompass Health Corporation (EHC) at 77 just above it and Nutex Health Inc. (NUTX) at 74 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 57 companies in Medical Care Facilities. The defenses are then weighted to produce the overall score out of 100.

Why is Chemed Corp scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Chemed Corp?

The Corporate Default template measures 6 defenses, and CHE scores: Pricing Power (79), Cost Advantage (71), Customer Stickiness (89), Capital Efficiency (82), Resilience (74), Scale & Market Position (60). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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