HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
USA - NASDAQ:HCSG - US4219061086 - Common Stock
17.26 USD
-0.22 (-1.26%)
17.26 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HCSG. HCSG was compared to 82 industry peers in the Commercial Services & Supplies industry. HCSG has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
In the past 5 years HCSG has always been profitable.
Of the past 5 years HCSG 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.94%, HCSG is doing good in the industry, outperforming 68.67% of the companies in the same industry.
HCSG's Return On Equity of 8.01% is fine compared to the rest of the industry. HCSG outperforms 65.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.40%, HCSG is in line with its industry, outperforming 49.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HCSG is below the industry average of 10.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.01% | ||
| ROIC | 4.4% |
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
HCSG has a Profit Margin (2.20%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HCSG has declined.
The Operating Margin of HCSG (2.02%) 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 12.49%, HCSG is doing worse than 84.34% 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 | 2.02% | ||
| PM (TTM) | 2.2% | ||
| GM | 12.49% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HCSG is destroying value.
Compared to 1 year ago, HCSG has about the same amount of shares outstanding.
Compared to 5 years ago, HCSG has less shares outstanding
HCSG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.84 indicates that HCSG is not in any danger for bankruptcy at the moment.
HCSG has a Altman-Z score of 5.84. This is amongst the best in the industry. HCSG outperforms 86.75% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.84 |
ROIC/WACC0.49
WACC9.04%
2.3 Liquidity
A Current Ratio of 2.97 indicates that HCSG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.97, HCSG belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
HCSG has a Quick Ratio of 2.88. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.88, HCSG belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 112.50% over the past year.
The earnings per share for HCSG have been decreasing by -13.73% on average. This is quite bad
HCSG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.26%.
Measured over the past years, HCSG shows a decrease in Revenue. The Revenue has been decreasing by -1.40% on average per year.
EPS 1Y (TTM)112.5%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%210.53%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%8.45%
3.2 Future
The Earnings Per Share is expected to grow by 28.37% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.19% on average over the next years.
EPS Next Y37.89%
EPS Next 2Y36.58%
EPS Next 3Y28.37%
EPS Next 5YN/A
Revenue Next Year7.33%
Revenue Next 2Y6.52%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 14.50, HCSG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HCSG indicates a somewhat cheap valuation: HCSG is cheaper than 78.31% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. HCSG is valued slightly cheaper when compared to this.
HCSG is valuated rather expensively with a Price/Forward Earnings ratio of 17.14.
71.08% of the companies in the same industry are more expensive than HCSG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HCSG to the average of the S&P500 Index (32.73), we can say HCSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
HCSG's Enterprise Value to EBITDA ratio is in line with the industry average.
HCSG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCSG is cheaper than 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 19.25 |
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 28.37% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y36.58%
EPS Next 3Y28.37%
5. Dividend
5.1 Amount
HCSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.26
-0.22 (-1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.2%
Inst Owner Change-1.77%
Ins Owners1.16%
Ins Owner Change-1.74%
Market Cap1.25B
Revenue(TTM)1.81B
Net Income(TTM)39.73M
Analysts78
Price Target21.76 (26.07%)
Short Float %1.64%
Short Ratio1.67
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)2
Avg EPS beat(2)95.26%
Min EPS beat(2)1.3%
Max EPS beat(2)189.22%
EPS beat(4)3
Avg EPS beat(4)48.85%
Min EPS beat(4)-20.37%
Max EPS beat(4)189.22%
EPS beat(8)5
Avg EPS beat(8)12.27%
EPS beat(12)7
Avg EPS beat(12)4.72%
EPS beat(16)8
Avg EPS beat(16)-0.87%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.28%
Revenue beat(4)0
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-1.2%
Max Revenue beat(4)-0.28%
Revenue beat(8)0
Avg Revenue beat(8)-1.5%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.61%
PT rev (1m)18.52%
PT rev (3m)27.36%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)3.45%
EPS NY rev (1m)-16.09%
EPS NY rev (3m)-13.16%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 17.14 | ||
| P/S | 0.69 | ||
| P/FCF | 7.91 | ||
| P/OCF | 7.63 | ||
| P/B | 2.52 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 19.25 |
EPS(TTM)1.19
EY6.89%
EPS(NY)1.01
Fwd EY5.84%
FCF(TTM)2.18
FCFY12.64%
OCF(TTM)2.26
OCFY13.1%
SpS24.97
BVpS6.85
TBVpS5.64
PEG (NY)0.38
PEG (5Y)N/A
Graham Number13.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.01% | ||
| ROCE | 5.99% | ||
| ROIC | 4.4% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 7.79% | ||
| OM | 2.02% | ||
| PM (TTM) | 2.2% | ||
| GM | 12.49% | ||
| FCFM | 8.73% |
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%
ROICexgc growth 3Y-15.48%
ROICexgc 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-Score7
Asset Turnover2.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 35.52% | ||
| Cap/Sales | 0.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 309.3% | ||
| Profit Quality | 397.43% | ||
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 5.84 |
F-Score7
WACC9.04%
ROIC/WACC0.49
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)112.5%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%210.53%
EPS Next Y37.89%
EPS Next 2Y36.58%
EPS Next 3Y28.37%
EPS Next 5YN/A
Revenue 1Y (TTM)6.26%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%8.45%
Revenue Next Year7.33%
Revenue Next 2Y6.52%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
EBIT growth 1Y-26.76%
EBIT growth 3Y-6.18%
EBIT growth 5Y-10.62%
EBIT Next Year-11.19%
EBIT Next 3Y40.07%
EBIT Next 5YN/A
FCF growth 1Y1227.06%
FCF growth 3Y-7.98%
FCF growth 5Y-22.8%
OCF growth 1Y863.44%
OCF growth 3Y-6.01%
OCF growth 5Y-19.93%
HEALTHCARE SERVICES GROUP / HCSG FAQ
What is the ChartMill fundamental rating of HEALTHCARE SERVICES GROUP (HCSG) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HCSG.
What is the valuation status for HCSG stock?
ChartMill assigns a valuation rating of 6 / 10 to HEALTHCARE SERVICES GROUP (HCSG). This can be considered as Fairly Valued.
What is the profitability of HCSG stock?
HEALTHCARE SERVICES GROUP (HCSG) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for HCSG stock?
The Price/Earnings (PE) ratio for HEALTHCARE SERVICES GROUP (HCSG) is 14.5 and the Price/Book (PB) ratio is 2.52.
Can you provide the expected EPS growth for HCSG stock?
The Earnings per Share (EPS) of HEALTHCARE SERVICES GROUP (HCSG) is expected to grow by 37.89% in the next year.