Chemed operates two distinct business entities. VITAS is the leading operator of hospice programs in the U.S. with 45+ programs across 14 states and Roto-Rooter is the leading operator and franchisor of plumbing and water restoration services covering 90% of the U.S. population and 40% of the Canadian population. There are very few synergies across the two businesses and each is operated separately for the most part. After doing weeks of research, the best explanation for why these two businesses are under one public entity is that management is aware that owning good businesses + prudent capital allocation drives stock returns in the long-run.
Your thoughts on valuation?