Is CHE a high-quality business?

AlphaMadera's AlphaQuality grade scores Chemed Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CHE compares to a Buffett-style quality bar.

What is Chemed Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CHE based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CHE a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CHE - Chemed Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $475.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B+ 79.3 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B+ 77.4

5yr Avg ROIC 23.6% 98/100
Operating Margin Trend -0.63 pp/yr 30/100

Capital Efficiency

Weight: 15%

A+ 97.0

5yr Avg ROE 27.7% 100/100
5yr Share-Count CAGR -2.5% 91/100

Growth Quality

Weight: 15%

C 52.8

5yr Revenue CAGR 4.3% 55/100
5yr EPS CAGR 2.3% 35/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

A- 86.5

5yr FCF Margin 12.7% 77/100
5yr FCF/NI Conversion 1.08x 99/100

Balance Sheet

Weight: 20%

A+ 96.9

Net Debt / EBITDA 0.19x 93/100
Interest Coverage (EBIT/Int) 204.30x 100/100
Altman Z-Score 10.20 100/100

Stability

Weight: 15%

C+ 59.9

EPS Volatility (σ/μ) 0.39 44/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

4 of 4 gurus held; 1 added; 3 trimmed.

Holders: 4
Avg Δ position: -19.9%
New buys: 0
Full exits: 0

Dalio decreased -55%
Cooperman decreased -28%
Laffont increased +21%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.