HEALTHCARE SERVICES GROUP (HCSG)
US4219061086 - Common Stock
Taking everything into account, HCSG scores 5 out of 10 in our fundamental rating. HCSG was compared to 84 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HCSG had positive earnings in the past year.
In the past year HCSG had a positive cash flow from operations.
Each year in the past 5 years HCSG has been profitable.
Of the past 5 years HCSG 4 years had a positive operating cash flow.
1.2 Ratios
HCSG's Return On Assets of 4.86% is fine compared to the rest of the industry. HCSG outperforms 77.11% of its industry peers.
Looking at the Return On Equity, with a value of 8.41%, HCSG is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
The Return On Invested Capital of HCSG (5.59%) is comparable to the rest of the industry.
HCSG had an Average Return On Invested Capital over the past 3 years of 6.30%. This is below the industry average of 10.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 8.41% | ||
| ROIC | 5.59% |
ROA(3y)5.19%
ROA(5y)7.42%
ROE(3y)8.89%
ROE(5y)12.25%
ROIC(3y)6.3%
ROIC(5y)8.58%
1.3 Margins
With a Profit Margin value of 2.30%, HCSG perfoms like the industry average, outperforming 57.83% of the companies in the same industry.
HCSG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.69%, HCSG is doing worse than 63.86% of the companies in the same industry.
In the last couple of years the Operating Margin of HCSG has declined.
Looking at the Gross Margin, with a value of 12.90%, HCSG is doing worse than 78.31% of the companies in the same industry.
In the last couple of years the Gross Margin of HCSG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.69% | ||
| PM (TTM) | 2.3% | ||
| GM | 12.9% |
OM growth 3Y-28.74%
OM growth 5Y-13.18%
PM growth 3Y-25.73%
PM growth 5Y-11.24%
GM growth 3Y-5.66%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HCSG is destroying value.
HCSG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HCSG has less shares outstanding
The debt/assets ratio for HCSG has been reduced compared to a year ago.
2.2 Solvency
HCSG has an Altman-Z score of 4.57. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
HCSG's Altman-Z score of 4.57 is fine compared to the rest of the industry. HCSG outperforms 79.52% of its industry peers.
The Debt to FCF ratio of HCSG is 0.66, which is an excellent value as it means it would take HCSG, only 0.66 years of fcf income to pay off all of its debts.
HCSG has a better Debt to FCF ratio (0.66) than 85.54% of its industry peers.
HCSG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
HCSG's Debt to Equity ratio of 0.05 is amongst the best of the industry. HCSG outperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.58
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.64 indicates that HCSG has no problem at all paying its short term obligations.
HCSG has a better Current ratio (2.64) than 81.93% of its industry peers.
HCSG has a Quick Ratio of 2.55. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
HCSG's Quick ratio of 2.55 is amongst the best of the industry. HCSG outperforms 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
The earnings per share for HCSG have decreased strongly by -13.79% in the last year.
The earnings per share for HCSG have been decreasing by -18.61% on average. This is quite bad
HCSG shows a decrease in Revenue. In the last year, the revenue decreased by -1.12%.
HCSG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
EPS 1Y (TTM)-13.79%
EPS 3Y-32.83%
EPS 5Y-18.61%
EPS growth Q2Q-18.18%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y-1.71%
Revenue growth 5Y-3.55%
Revenue growth Q2Q-0.04%
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 33.83% on average per year.
Based on estimates for the next years, HCSG will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y99.92%
EPS Next 2Y47.4%
EPS Next 3Y33.83%
EPS Next 5YN/A
Revenue Next Year3.28%
Revenue Next 2Y3.28%
Revenue Next 3Y2.01%
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 26.60, HCSG can be considered very expensive at the moment.
HCSG's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.55. HCSG is around the same levels.
Based on the Price/Forward Earnings ratio of 13.31, the valuation of HCSG can be described as correct.
Based on the Price/Forward Earnings ratio, HCSG is valued cheaply inside the industry as 83.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, HCSG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
HCSG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HCSG is cheaper than 69.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HCSG is valued a bit cheaper than 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.55 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HCSG's earnings are expected to grow with 33.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y47.4%
EPS Next 3Y33.83%
5. Dividend
5.1 Amount
No dividends for HCSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HEALTHCARE SERVICES GROUP
NASDAQ:HCSG (5/1/2024, 7:00:42 PM)
After market: 10.64 0 (0%)10.64
+0.02 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap782.89M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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PT rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 13.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 8.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.69% | ||
| PM (TTM) | 2.3% | ||
| GM | 12.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.79%
EPS 3Y-32.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y99.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y-1.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y