Is CHEMED CORP (CHE) Halal?

NYSE Healthcare United States $5.2B
✓ HALAL
Confidence: 95/100
CHEMED CORP (CHE) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 2.5% against the AAOIFI threshold of 30%, CHEMED CORP comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Medical Care Facilities), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 2.5%
/ 30%
1.3%
/ 30%
3.2%
/ 30%
0.35%
/ 5%
✓ HALAL
DJIM 2.5%
/ 33%
1.3%
/ 33%
3.2%
/ 33%
0.35%
/ 5%
✓ HALAL
MSCI 9.3%
/ 33%
4.8%
/ 33%
11.9%
/ 33%
0.35%
/ 5%
✓ HALAL
S&P 2.5%
/ 33%
1.3%
/ 33%
3.2%
/ 33%
0.35%
/ 5%
✓ HALAL
FTSE 9.3%
/ 33%
4.8%
/ 33%
11.9%
/ 50%
0.35%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
20.1
Forward: 13.8
EPS
$18.36
Dividend Yield
62.0%
Payout: 12.0%
P/B Ratio
5.2
EV/EBITDA
12.7
EV: $5.1B
Revenue
$2.5B
Growth: -0.1%
Beta
0.5
Low volatility
Current Ratio
1.1

Profitability

Gross Margin 32.5%
Operating Margin 16.6%
Net Margin 10.5%
Return on Equity (ROE) 25.3%
Return on Assets (ROA) 13.4%

Cash Flow & Balance Sheet

Operating Cash Flow$388M
Free Cash Flow$325M
Total Debt$144M
Debt-to-Equity14.7
Current Ratio1.1
Total Assets$1.5B

Price & Trading

Last Close$371.95
50-Day MA$427.85
200-Day MA$446.69
Avg Volume208K
Beta0.5
52-Week Range
$365.21
$623.61

About CHEMED CORP (CHE)

CEO
Mr. Kevin J. McNamara
Employees
15,811
Sector
Healthcare
Industry
Medical Care Facilities
Country
United States
Exchange
NYSE
Market Cap
$5.2B
Currency
USD

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, doctors, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates through two segments: VITAS and Roto-Rooter segments. The company offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company also provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Chemed Corporation was incorporated in 1970 and is headquartered in Cincinnati, Ohio.

Purification Calculator

As a halal stock with 0.35% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is CHEMED CORP (CHE) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), CHEMED CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is CHEMED CORP's debt ratio?

CHEMED CORP's debt ratio is 2.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 9.3%.

Does CHEMED CORP require dividend purification?

Yes, CHEMED CORP has an impermissible income ratio of 0.35%, which means 0.35% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are CHEMED CORP's key financial metrics?

CHEMED CORP has a market capitalization of $5.2B, trailing P/E ratio of 20.1, and revenue of $2.5B. The company maintains a gross margin of 32.5% and a net margin of 10.5%. Return on equity stands at 25.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.