ChemedFRA:CXM +1.04%71 Operating Margin % is 12.86% as of Mar. 2026, which is 11% below its 10-year median of 14.42. GuruFocus rates FRA:CXM with a GF Score™ of 71/100 and a GF Value™ of €566.42 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 668 Healthcare Providers & Services companies, Chemed ranks better than 77.84% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Chemed's Operating Income for the
three
months ended in Mar. 2026 was €73 Mil. Chemed's Revenue for the
three
months ended in Mar. 2026 was €569 Mil. Therefore, Chemed's Operating Margin % for the quarter that ended in Mar. 2026 was 12.86%.
Warning Sign:
Chemed Corp operating margin has been in a 5-year decline. The average rate of decline per year is -5.3%.
The historical rank and industry rank for Chemed's Operating Margin % or its related term are showing as below:
FRA:CXM'
s Operating Margin % Range Over the Past 10 Years
Min: 11.34 Med: 14.42 Max: 18.74
Current: 13.03
FRA:CXM's Operating Margin % is ranked better than 77.84% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 4.845
vs FRA:CXM: 13.03
Chemed's 5-Year Average Operating Margin % Growth Rate was -5.30% per year.
Chemed's Operating Income for the
three
months ended in Mar. 2026 was €73 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €284 Mil.
Chemed (FRA:CXM) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Chemed Operating Margin % Related Terms
Chemed Operating Margin % Historical Data
* Premium members only.
The historical data trend for Chemed's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:CXM vs PACS, OPCH, CON: Operating Margin % Comparison
For the Medical Care Facilities subindustry, Chemed's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chemed Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Chemed's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chemed's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Chemed's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Chemed (FRA:CXM) has a Operating Margin % of 12.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chemed and its competitors. This is 11% below median its historical median of 14.42. Over the past decade, Chemed's Operating Margin % has ranged from 11.34 to 18.74. According to the industry distribution chart, Chemed ranks #148 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 22.2%.
Is Chemed's Operating Margin % too high?
Chemed's current Operating Margin % of 12.86% is 11% below median its 10-year median of 14.42. Over the past 10 years, this metric has ranged from a low of 11.34 to a high of 18.74. The Healthcare Providers & Services industry median Operating Margin % is 4.85. Chemed's value of 12.86% is 165.4% above this industry median. Based on the distribution chart, Chemed ranks #148 out of 668 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Chemed has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chemed's Operating Margin % compare to PACS and OPCH?
According to the Healthcare Providers & Services industry distribution chart, Chemed ranks #148 out of 668 companies for Operating Margin %. This places Chemed in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.85. Chemed's value of 12.86% is 165.4% above this benchmark. Historically, Chemed's own Operating Margin % has ranged from 11.34 to 18.74 over the past decade. While the company's 10-year median is 14.42 vs. the industry median of 4.85, Chemed has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 4.85, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chemed's current Operating Margin % of 12.86% is 165.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Chemed and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemed's current Operating Margin % is 12.86%, which is 11% below median its own 10-year median of 14.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemed stock overvalued right now?
Based on GuruFocus' analysis, Chemed (FRA:CXM) is currently considered Significantly Undervalued. The stock's GF Value™ is €566.42, compared to a current price of €390.00 — trading 31.1% below its estimated fair value. The current Operating Margin % is 12.86%, which is 11% below median its 10-year median of 14.42 and 165.4% above the Healthcare Providers & Services industry median of 4.85. Chemed's overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Chemed (FRA:CXM), the current Operating Margin % is 12.86% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chemed (FRA:CXM) Overvalued in 2026?
Based on GuruFocus' analysis, Chemed stock appears to be undervalued.
The current stock price of €390.00 is trading 31.1% below its estimated GF Value™ of €566.42.
GuruFocus considers Chemed to be Significantly Undervalued.
Key valuation signals for FRA:CXM:
Operating Margin %: 12.86% (11% below median its 10-year median of 14.42)
GF Value™: €566.42 vs. price of €390.00 (31.1% below fair value)
Industry Position: 165.4% above the Healthcare Providers & Services median (#148 of 668)
No single metric tells the full story. See the FRA:CXM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemed Corp purchases, operates, and divests subsidiaries engaged in diverse business activities to maximize shareholder value. The company operates in the following segments: VITAS and Roto-Rooter. The VITAS segment generates the majority of the firm's revenue and provides hospice and palliative care services to patients with terminal illnesses through a network of physicians, registered nurses, home health aides, social workers, and volunteers. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration, and related services to residential and commercial customers.
71GF Score
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