Cash conversion remains robust with an OCF/NI ratio consistently above 1.0, yet free cash flow margins exhibit high volatility, ranging from 3.0% in 2025Q1 to 23.8% in 2024Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 443.75M | 388.27M | 417.5M | 330.3M | 309.89M | 308.6M | 489.29M | 301.25M | 287.14M | 162.5M | 135.39M | 171.5M | 110.28M | 150.85M | 131.77M | 174.34M | 86.01M | 160.83M | 112.08M | 99.58M | 98.59M | 80.01M | 94.16M | 22.59M | 29.52M | 34.36M | 51.84M | 27.5M | 20.8M | 33.4M | 35.8M |
| Operating CF Margin % | - | 15.35% | 17.17% | 14.59% | 14.51% | 14.43% | 23.53% | 15.54% | 16.11% | 9.75% | 8.59% | 11.11% | 7.57% | 10.67% | 9.21% | 12.86% | 6.72% | 13.51% | 9.76% | 9.05% | 9.68% | 8.74% | 12.81% | 8.66% | 11.64% | 10.17% | 14.59% | 6.06% | 5.46% | 9.77% | 11.89% |
| Operating CF Growth % | 221.32% | -7% | 26.4% | 6.59% | 0.42% | -36.93% | 62.42% | 4.91% | 76.71% | 20.02% | -21.05% | 55.51% | -26.89% | 14.48% | -24.42% | 102.7% | -46.52% | 43.49% | 12.55% | 1.01% | 23.22% | -15.02% | 316.8% | -23.48% | -14.08% | -33.71% | 88.5% | 32.21% | -37.72% | -6.7% | 90.43% |
| Net Income | 259.78M | 265.24M | 302M | 272.51M | 249.62M | 268.55M | 319.47M | 219.92M | 205.54M | 98.18M | 108.74M | 110.27M | 99.32M | 77.23M | 89.3M | 85.98M | 81.83M | 73.78M | 71.02M | 63.98M | 50.65M | 35.82M | 27.51M | -3.44M | -1.81M | -10.38M | 20.58M | 19.7M | 19.9M | 30.3M | 32.3M |
| Depreciation & Amortization | 65.7M | 64.84M | 63.05M | 60.87M | 59.17M | 59.05M | 56.58M | 45.2M | 38.86M | 35.63M | 34.64M | 33.5M | 33.07M | 32.39M | 30.52M | 29.5M | 29.04M | 27.9M | 27.5M | 26.57M | 23.8M | 23.34M | 20.18M | 12.81M | 14.36M | 24.12M | 23.45M | 20.1M | 17.3M | 15.2M | 18.8M |
| Stock-Based Compensation | 18.89M | 4.89M | 32.03M | 30.08M | 26.25M | 22.5M | 18.42M | 14.83M | 446K | 1.23M | 1.85M | 2.65M | 10.32M | 10.87M | 11.97M | 8.38M | 7.76M | 8.64M | 7.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 3.49M | -5.94M | -4.14M | -8.03M | -3.35M | -15.78M | 37.78M | -2.77M | 5.19M | 2.41M | -6.71M | 6.33M | 6.98M | -6.99M | -3.15M | 7.24M | -2.41M | 4.98M | 426K | 8.11M | 7.41M | -3.68M | 5M | -501K | 855K | -4.4M | 2.1M | 100K | 3.4M | -1.8M | -2.2M |
| Other Non-Cash Items | 19.77M | 35.54M | 16.42M | 14.18M | 11.67M | 1.07M | 12.61M | 16.48M | 7.33M | 29.05M | 13.71M | 9.06M | 16.31M | 19.06M | 15.71M | 16.57M | 18.02M | 20.84M | 15.06M | 18.83M | 22.74M | 15.25M | 12.08M | 15.16M | 20.75M | 28.43M | 1.1M | -2.4M | -10.4M | -15.1M | -8.5M |
| Working Capital Changes | 76.12M | 23.71M | 8.13M | -39.31M | -33.49M | -26.8M | 44.43M | 7.58M | 17.15M | -14.48M | -25.18M | 4.79M | -49.72M | 23.11M | -8.75M | 26.68M | -48.24M | 24.44M | -4.61M | -20.19M | -6.02M | 6.85M | 28.44M | 661K | -2.4M | 2.57M | 4.61M | -10M | -9.4M | 4.8M | 11.3M |
| Change in Receivables | 22.93M | -11.6M | 10.68M | -41.49M | -2.41M | -8.43M | 12.77M | -19.25M | -5.57M | 1.07M | -42.14M | 4.13M | -45.78M | -9.01M | -24.42M | 26.9M | -68.66M | 33.75M | -6.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 582K | 650K | 3.83M | -1.73M | -162K | -3.01M | 367K | -1.76M | -351K | 421K | 559K | -142K | 535K | 355K | 1.61M | -940K | -151K | 29K | -898K | -18K | -78K | 520K | -986K | 1.24M | 931K | 79K | -706K | -500K | -900K | -800K | 5.8M |
| Change in Payables | 17.4M | -5.19M | -9.28M | -9.35M | 15.34M | 9.83M | 19.1M | 28.42M | 8.94M | 12.89M | 891K | 476K | -25.82M | 40.34M | 4.95M | -1.4M | 13.81M | -8.11M | 5.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -83.45M | -59.34M | -143.91M | -60.64M | -59.4M | -57.76M | -61.56M | -190.76M | -105.22M | -67.61M | -39.86M | -50.32M | -43.53M | -31.35M | -40.68M | -34.11M | -35.7M | -22.84M | -28.63M | -31.72M | -27.73M | -41.74M | -353.21M | -7.78M | 41.02M | -19.09M | -31.32M | -32.2M | -25.2M | 126M | -84.4M |
| Capital Expenditures | -66.63M | -62.8M | -49.53M | -56.85M | -57.33M | -58.67M | -58.83M | -53.02M | -52.87M | -64.3M | -39.77M | -44.13M | -43.57M | -29.32M | -35.25M | -29.59M | -25.64M | -21.5M | -26.09M | -26.64M | -21.99M | -25.73M | -18.29M | -10.38M | -8.44M | -14.46M | -31M | -37.9M | -36.8M | -20.1M | -11M |
| CapEx % of Revenue | 2.62% | 2.48% | 2.04% | 2.51% | 2.69% | 2.74% | 2.83% | 2.74% | 2.97% | 3.86% | 2.52% | 2.86% | 2.99% | 2.07% | 2.47% | 2.18% | 2% | 1.81% | 2.27% | 2.42% | 2.16% | 2.81% | 2.49% | 3.98% | 3.33% | 4.28% | 8.73% | 8.36% | 9.65% | 5.88% | 3.65% |
| Acquisitions | -20.61M | -225K | -97.4M | -3.99M | -3.53M | 0 | -3.6M | -138.01M | -53.18M | -4.72M | 0 | -6.61M | -250K | -2.26M | -5.9M | -3.66M | -9.47M | -1.92M | -11.2M | -1.08M | -4.14M | -6.17M | -343.05M | -3.85M | -1.24M | -1.55M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3.79M | 3.68M | 3.02M | 206K | 1.45M | 918K | 871K | 272K | 824K | 1.42M | -90K | 432K | 294K | 235K | 468K | -858K | -592K | 573K | 8.67M | -4M | -1.6M | -9.84M | 8.13M | -7.32M | 48.77M | -4.45M | -4.61M | -2M | -3.4M | 132M | -115.9M |
| Cash from Financing | -517.32M | -432.77M | -359.19M | -79.83M | -209.25M | -380.62M | -271.21M | -109.16M | -188.2M | -99.08M | -94.95M | -120.59M | -137.04M | -104.61M | -59.63M | -152.06M | -112.81M | -29.2M | -84.82M | -92.15M | -98.72M | -52.59M | 279.81M | -1.95M | -41.53M | -16.55M | -27.52M | -19.4M | -25.1M | -102.5M | 41.4M |
| Debt Issued (Net) | 10.53M | 10.97M | -15.75M | -81.75M | -99.38M | 196.88M | -90M | 800K | -13.53M | -850K | 16.76M | -57.43M | -29.74M | -11.41M | 1.92M | -826K | -581K | -19.98M | -11.37M | 18.27M | -81.99M | -49.84M | 198.06M | -1.02M | -35.09M | -11.38M | -16.96M | 7M | -2.9M | -82.7M | 63.8M |
| Equity Issued (Net) | -398.28M | -404.35M | -361.39M | -67.7M | -114.52M | -576.04M | -175.59M | -92.63M | -158.88M | -94.64M | -102.31M | -59.32M | -110.02M | -92.91M | -60.62M | -143.97M | -109.33M | -4.22M | -69.79M | -131.7M | -16.02M | 4.93M | 96.17M | 2.65M | -1.67M | -491K | -5.73M | -4.5M | -400K | 0 | -3.7M |
| Dividends Paid | -32.54M | -31.7M | -27.09M | -23.5M | -22.02M | -22.02M | -21.08M | -19.79M | -18.66M | -17.37M | -16.44M | -15.61M | -14.26M | -14.15M | -13.03M | -12.54M | -11.88M | -8.16M | -5.54M | -5.89M | -6.32M | -6.17M | -5.72M | -4.76M | -4.44M | -4.38M | -4.02M | -22.5M | -21.7M | -21M | -20.4M |
| Share Repurchases | -588.32M | -431.5M | -361.39M | -67.7M | -114.52M | -576.04M | -175.59M | -92.63M | -158.88M | -94.64M | -102.31M | -59.32M | -110.02M | -92.91M | -60.62M | -147.89M | -109.33M | -4.22M | -69.79M | -131.7M | -19.89M | -7.4M | -2.65M | -637K | -3.21M | -1.23M | -5.73M | -4.5M | -400K | 0 | -3.7M |
| Other Financing | -97.03M | -7.69M | 45.04M | 93.13M | 26.66M | 20.55M | 15.46M | 2.46M | 2.87M | 13.79M | 7.04M | 11.77M | 16.98M | 13.86M | 12.09M | 5.27M | 8.98M | 3.16M | 1.88M | 27.17M | 5.62M | -1.5M | -8.7M | 1.18M | -343K | -293K | -806K | 600K | -100K | 1.2M | 1.7M |
| Net Change in Cash | -157.03M | -103.83M | -85.61M | 189.83M | 41.23M | -129.78M | 156.52M | 1.33M | -6.29M | -4.19M | 583K | 595K | -70.29M | 14.89M | 31.45M | -11.84M | -62.5M | 108.79M | -1.36M | -24.29M | -27.86M | -14.31M | 20.76M | 12.86M | 29.01M | -1.27M | -7M | -24.1M | -29.5M | 56.9M | -7.2M |
| Free Cash Flow | 377.12M | 325.48M | 367.97M | 273.44M | 252.56M | 249.92M | 430.46M | 248.23M | 234.27M | 98.19M | 95.62M | 127.36M | 66.71M | 121.52M | 96.52M | 144.75M | 60.37M | 139.34M | 85.99M | 72.94M | 76.6M | 54.06M | 75.86M | 11.41M | 17.67M | 20.23M | 20.84M | -10.4M | -16M | 13.3M | 16.8M |
| FCF Margin % | 14.84% | 12.86% | 15.13% | 12.08% | 11.83% | 11.68% | 20.7% | 12.8% | 13.14% | 5.89% | 6.06% | 8.25% | 4.58% | 8.6% | 6.75% | 10.68% | 4.71% | 11.71% | 7.48% | 6.63% | 7.52% | 5.9% | 10.32% | 4.38% | 6.96% | 5.99% | 5.86% | -2.29% | -4.2% | 3.89% | 5.58% |
| FCF Growth % | 19.7% | -11.55% | 34.57% | 8.27% | 1.06% | -41.94% | 73.41% | 5.96% | 138.57% | 2.69% | -24.92% | 90.93% | -45.11% | 25.91% | -33.32% | 139.76% | -56.67% | 62.04% | 17.88% | -4.78% | 41.71% | -28.75% | 564.78% | -35.41% | -12.66% | -2.91% | 300.34% | 35% | -220.3% | -20.83% | 394.12% |
| FCF per Share | 27.58 | 22.61 | 24.23 | 17.99 | 16.73 | 15.68 | 26.25 | 15.02 | 13.94 | 5.87 | 5.70 | 7.31 | 3.74 | 6.54 | 4.99 | 6.91 | 2.62 | 6.13 | 3.68 | 2.91 | 2.87 | 2.06 | 3.08 | 0.57 | 0.89 | 1.04 | 1.05 | -0.49 | -0.79 | 0.66 | 0.85 |
| FCF Conversion (FCF/Net Income) | 1.45x | 1.46x | 1.38x | 1.21x | 1.24x | 1.15x | 1.53x | 1.37x | 1.40x | 1.66x | 1.25x | 1.56x | 1.11x | 1.95x | 1.48x | 2.03x | 1.05x | 2.18x | 1.58x | 1.56x | 1.95x | 2.23x | 3.42x | -6.58x | -16.28x | -3.31x | 2.52x | 1.40x | 1.05x | 1.10x | 1.11x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Medicare reimbursement policy shifts
According to quarterly financial data, Chemed consistently reports operating cash flow exceeding net income, with an OCF/NI ratio averaging well above 1.0, which suggests that the company's reported earnings are supported by high-quality cash generation rather than aggressive accounting accruals or non-cash revenue recognition practices.
The consistent premium of operating cash flow over net income indicates that Chemed's business model effectively converts service delivery into realized cash. Investors should monitor whether this conversion efficiency remains stable as the company navigates potential shifts in Medicare reimbursement timing and insurance-related collection lags.
As reported in recent financial statements, Chemed's free cash flow margins have exhibited significant quarterly variance, ranging from a low of 3.0% in 2025Q1 to a peak of 23.8% in 2024Q4, reflecting the underlying sensitivity of cash generation to working capital fluctuations and seasonal service demand.
The volatility in free cash flow suggests that while the core business is inherently cash-generative, the timing of cash inflows is subject to operational lumpy-ness. This inconsistency warrants further investigation into whether the recent margin compression is a temporary timing issue or a structural decline in the profitability of the VITAS hospice segment.
Based on reported figures, Chemed's working capital changes have been highly erratic, swinging from a $57.6 million inflow in 2025Q2 to a $52.6 million outflow in 2025Q1, which highlights the significant impact of government payment cycles and insurance claim processing on the company's short-term liquidity.
These swings suggest that the company's cash position is heavily influenced by the administrative efficiency of its billing departments. Investors should interpret these fluctuations as a reflection of the inherent complexity in managing government-reimbursed hospice care alongside transactional plumbing service receivables.
As evidenced by historical cash flow statements, Chemed prioritizes aggressive share repurchases, with buybacks totaling $190 million in 2026Q1 alone, significantly outpacing dividend distributions and suggesting a management preference for returning capital to shareholders through equity reduction rather than pursuing large-scale, potentially dilutive external acquisitions.
The company's commitment to buybacks, even during periods of fluctuating cash flow, indicates a high degree of confidence in its long-term cash generation capabilities. However, this strategy may limit the firm's ability to pivot toward inorganic growth if the hospice or plumbing markets undergo rapid consolidation.
Quick answers to the most common questions about buying CHE stock.
Chemed Corporation (CHE) generated $388.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Chemed Corporation (CHE) generated $325.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Chemed Corporation (CHE) spent $62.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Chemed Corporation (CHE) returned $31.7M to shareholders via cash dividends and spent $431.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.