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

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

2025/5/1
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Business Breakdowns

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Chadd Garcia
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Zach Fuss
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Zach Fuss: 我认为Chemed成功的关键在于其刻意且执行良好的资本配置策略,这使其自2003年以来每股收益复合年增长率达到21%,市值达85亿美元,资产负债表为净现金状态。 Chadd Garcia: Chemed的经营理念是专注于提高每股自由现金流,并对实现这一目标的方式持开放态度,即使这意味着出售现有业务或收购新业务。Chemed的历史可以追溯到20世纪70年代初,当时它从W.R. Grace公司剥离出来,并经历了一系列的战略收购和剥离,最终形成了如今的业务组合。Roto-Rooter是Chemed旗下较小的业务部门,约占其收益的30%-35%,其核心业务是紧急管道服务,具有很强的品牌知名度和市场地位。Roto-Rooter的收入增长率约为6%,这在正常的通货膨胀环境下是标准的,但由于其利润率不断提高,其盈利增长率约为12%。VITAS是Chemed旗下另一家子公司,主要提供临终关怀服务,其收入增长率与Roto-Rooter相似,但盈利增长率更高,这主要得益于其利润率的提高。Roto-Rooter是紧急管道服务的黄金标准,其70%-75%的服务电话都是紧急或当日服务,客户对价格不太敏感。近年来,私募股权公司已成为Roto-Rooter强大的竞争对手,他们通过挖角Roto-Rooter的管理人员和改进营销策略来争夺市场份额。Roto-Rooter作为企业所有者相比于租户,具有优势,一些离开后又回到Roto-Rooter的经理人可能已经认识到“外面的草并不总是更绿”。Roto-Rooter的利润率约为25%,其直营分公司表现优异,这主要是因为公司对分公司的控制力强于特许经营权和独立承包商。VITAS的收入复合年增长率为6%,主要通过有机增长实现,其息税折旧摊销前利润率在15%-22%之间。VITAS面临着巨大的市场增长潜力,因为美国每年死亡人数不断增加,预计到2040年代将达到近450万人。临终关怀行业为政府节省了大量资金,因为其减少了昂贵的医院就诊次数。VITAS通过选择具有严格监管的州和人口稠密的地区来经营,从而保持较高的利润率。VITAS通过在疫情期间投资员工保留和招聘计划,成功地获得了市场份额。Chemed的资本配置策略是专注于增长每股自由现金流,并保持保守的资产负债表,只有在价格合适的情况下才会考虑出售现有业务或拆分公司。Chemed的成功得益于其业务模式的低资本需求和管理团队优秀的资本配置能力。

Deep Dive

Shownotes Transcript

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, there's Rotor-Rooter, the iconic plumbing drain cleaning and water cleanup service provider whose roots go all the way back to 1935. So, how did an end-of-life healthcare company and an emergency plumbing business end up under the same corporate umbrella?

I'm joined today by Chadd Garcia), a portfolio manager at the Ave Maria Focused Fund. We'll discuss their unique business models, the growth drivers of the businesses, and why Chemed and its management team believe that this unique combination ultimately works for maximizing shareholder value. 

Please enjoy this Breakdown on Chemed Corporation.

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For the full show notes, transcript, and links to the best content to learn more, check out the episode page__ here.__)

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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit__ joincolossus.com/episodes__).

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)).

Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:00:12) ChemED's Business Philosophy

(00:01:45) History and Evolution of ChemED

(00:05:13) Roto-Rooter: Business Breakdown

(00:08:19) Vitas: Business Breakdown

(00:09:15) Vitas: Business Breakdown

(00:13:27) Roto-Rooter: Competitive Landscape

(00:20:17) Comparing Roto-Rooter and Vitas

(00:21:20) Vitas: Market Dynamics and Growth

(00:34:41) Capital Allocation and Future Prospects

(00:36:48) Lessons From Creaking Down Chemed