Chemed: Empire of Care - [Business Breakdowns, EP.215]

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This is Zack Fuss. Today we are breaking down Chemed. Chemed represents the union of two seemingly distinct businesses: end-of-life healthcare and plumbing services. As our guest aptly puts it, old houses and old people. The two underlying businesses, VITAS and the widely recognized Roto-Rooter, both offer interesting stories in their own right. The strength of this business has been its intentional and well-executed capital allocation strategy, which has resulted in a 21% EPS CAGR since 2003, a market cap of $8.5 billion, and a net cash balance sheet. On the one hand, you have Vitas Healthcare, a leading provider of end-of-life hospice care in the US founded in 1978. And on the other hand,…