HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
NASDAQ:HCSG - Nasdaq - US4219061086 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HCSG. HCSG was compared to 83 industry peers in the Commercial Services & Supplies industry. While HCSG has a great health rating, its profitability is only average at the moment. HCSG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HCSG was profitable.
In the past year HCSG had a positive cash flow from operations.
HCSG had positive earnings in each of the past 5 years.
Of the past 5 years HCSG 4 years had a positive operating cash flow.
1.2 Ratios
HCSG has a better Return On Assets (5.03%) than 66.27% of its industry peers.
HCSG has a better Return On Equity (8.05%) than 63.86% of its industry peers.
With a Return On Invested Capital value of 5.96%, HCSG perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HCSG is significantly below the industry average of 11.67%.
The 3 year average ROIC (5.75%) for HCSG is below the current ROIC(5.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 8.05% | ||
| ROIC | 5.96% |
ROA(3y)4.86%
ROA(5y)6.61%
ROE(3y)8.14%
ROE(5y)11.02%
ROIC(3y)5.75%
ROIC(5y)7.56%
1.3 Margins
Looking at the Profit Margin, with a value of 2.38%, HCSG is in line with its industry, outperforming 54.22% of the companies in the same industry.
HCSG's Profit Margin has declined in the last couple of years.
The Operating Margin of HCSG (2.91%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HCSG has declined.
Looking at the Gross Margin, with a value of 13.32%, HCSG is doing worse than 83.13% of the companies in the same industry.
In the last couple of years the Gross Margin of HCSG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.91% | ||
| PM (TTM) | 2.38% | ||
| GM | 13.32% |
OM growth 3Y-7.54%
OM growth 5Y-9.36%
PM growth 3Y-6.29%
PM growth 5Y-8.1%
GM growth 3Y-1.37%
GM growth 5Y1.38%
2. Health
2.1 Basic Checks
HCSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HCSG has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, HCSG has less shares outstanding
There is no outstanding debt for HCSG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.48 indicates that HCSG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.48, HCSG belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
HCSG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.57
WACC10.48%
2.3 Liquidity
A Current Ratio of 2.89 indicates that HCSG has no problem at all paying its short term obligations.
HCSG's Current ratio of 2.89 is amongst the best of the industry. HCSG outperforms 81.93% of its industry peers.
A Quick Ratio of 2.81 indicates that HCSG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.81, HCSG belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.27% over the past year.
Measured over the past years, HCSG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.73% on average per year.
Looking at the last year, HCSG shows a small growth in Revenue. The Revenue has grown by 3.72% in the last year.
HCSG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.40% yearly.
EPS 1Y (TTM)27.27%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%9.52%
Revenue 1Y (TTM)3.72%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%5.72%
3.2 Future
Based on estimates for the next years, HCSG will show a very strong growth in Earnings Per Share. The EPS will grow by 25.20% on average per year.
Based on estimates for the next years, HCSG will show a small growth in Revenue. The Revenue will grow by 5.38% on average per year.
EPS Next Y58.78%
EPS Next 2Y30.46%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y5.11%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.73, HCSG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HCSG is on the same level as its industry peers.
HCSG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.90 indicates a correct valuation of HCSG.
Based on the Price/Forward Earnings ratio, HCSG is valued a bit cheaper than 69.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, HCSG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
HCSG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HCSG is valued a bit cheaper than the industry average as 75.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
HCSG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HCSG's earnings are expected to grow with 25.20% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y30.46%
EPS Next 3Y25.2%
5. Dividend
5.1 Amount
HCSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.53
+0.5 (+3.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.76%
Inst Owner Change-15.16%
Ins Owners1.15%
Ins Owner Change4.94%
Market Cap1.13B
Analysts76.36
Price Target15.3 (-1.48%)
Short Float %2.61%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.45%
Min EPS beat(2)-20.37%
Max EPS beat(2)25.27%
EPS beat(4)1
Avg EPS beat(4)-27.37%
Min EPS beat(4)-109.9%
Max EPS beat(4)25.27%
EPS beat(8)3
Avg EPS beat(8)-32.54%
EPS beat(12)5
Avg EPS beat(12)-21.4%
EPS beat(16)6
Avg EPS beat(16)-19.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-1.11%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.8%
Revenue beat(16)1
Avg Revenue beat(16)-1.82%
PT rev (1m)0%
PT rev (3m)10.29%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)10.22%
EPS NY rev (1m)0.96%
EPS NY rev (3m)13.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 16.9 | ||
| P/S | 0.65 | ||
| P/FCF | 14.43 | ||
| P/OCF | 13.43 | ||
| P/B | 2.2 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 14.75 |
EPS(TTM)0.56
EY3.61%
EPS(NY)0.92
Fwd EY5.92%
FCF(TTM)1.08
FCFY6.93%
OCF(TTM)1.16
OCFY7.45%
SpS23.86
BVpS7.05
TBVpS5.82
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 8.05% | ||
| ROCE | 8.11% | ||
| ROIC | 5.96% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 8.87% | ||
| OM | 2.91% | ||
| PM (TTM) | 2.38% | ||
| GM | 13.32% | ||
| FCFM | 4.51% |
ROA(3y)4.86%
ROA(5y)6.61%
ROE(3y)8.14%
ROE(5y)11.02%
ROIC(3y)5.75%
ROIC(5y)7.56%
ROICexc(3y)7.3%
ROICexc(5y)11.16%
ROICexgc(3y)9.04%
ROICexgc(5y)13.96%
ROCE(3y)8.07%
ROCE(5y)10.44%
ROICexcg growth 3Y-15.48%
ROICexcg growth 5Y-11.74%
ROICexc growth 3Y-12.99%
ROICexc growth 5Y-11.98%
OM growth 3Y-7.54%
OM growth 5Y-9.36%
PM growth 3Y-6.29%
PM growth 5Y-8.1%
GM growth 3Y-1.37%
GM growth 5Y1.38%
F-Score8
Asset Turnover2.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.39% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.65% | ||
| Profit Quality | 189.55% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z | 5.48 |
F-Score8
WACC10.48%
ROIC/WACC0.57
Cap/Depr(3y)38.37%
Cap/Depr(5y)36.79%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.27%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%9.52%
EPS Next Y58.78%
EPS Next 2Y30.46%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue 1Y (TTM)3.72%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%5.72%
Revenue Next Year5.67%
Revenue Next 2Y5.11%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
EBIT growth 1Y22.82%
EBIT growth 3Y-6.18%
EBIT growth 5Y-10.62%
EBIT Next Year105.92%
EBIT Next 3Y33.22%
EBIT Next 5YN/A
FCF growth 1Y8617.22%
FCF growth 3Y-7.98%
FCF growth 5Y-22.8%
OCF growth 1Y1379.58%
OCF growth 3Y-6.01%
OCF growth 5Y-19.93%