HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
USA - NASDAQ:HCSG - US4219061086 - Common Stock
16.55 USD
+0.08 (+0.49%)
We assign a fundamental rating of 5 out of 10 to HCSG. HCSG was compared to 84 industry peers in the Commercial Services & Supplies industry. HCSG has a great financial health rating, but its profitability evaluates not so good. HCSG has a correct valuation and a medium growth rate.
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.
HCSG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.35%, HCSG is in line with its industry, outperforming 52.38% of the companies in the same industry.
With a Return On Equity value of 2.27%, HCSG perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
HCSG's Return On Invested Capital of 0.85% is on the low side compared to the rest of the industry. HCSG is outperformed by 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HCSG is below the industry average of 10.17%.
The 3 year average ROIC (5.75%) for HCSG is well above the current ROIC(0.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 2.27% | ||
| ROIC | 0.85% |
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 (0.61%) which is in line with its industry peers.
In the last couple of years the Profit Margin of HCSG has declined.
HCSG has a Operating Margin of 0.38%. This is in the lower half of the industry: HCSG underperforms 61.90% of its industry peers.
In the last couple of years the Operating Margin of HCSG has declined.
Looking at the Gross Margin, with a value of 10.87%, HCSG is doing worse than 85.71% 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 | 0.38% | ||
| PM (TTM) | 0.61% | ||
| GM | 10.87% |
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
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
HCSG has an Altman-Z score of 5.28. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
HCSG has a Altman-Z score of 5.28. This is amongst the best in the industry. HCSG outperforms 83.33% 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 | 5.28 |
ROIC/WACC0.09
WACC8.98%
2.3 Liquidity
HCSG has a Current Ratio of 2.49. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.49, HCSG is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 2.41 indicates that HCSG has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.41, HCSG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 163.33% 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 5.17%.
HCSG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.40% yearly.
EPS 1Y (TTM)163.33%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%1150%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%7.55%
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 26.43% on average per year.
HCSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
EPS Next Y64.33%
EPS Next 2Y32.9%
EPS Next 3Y26.43%
EPS Next 5YN/A
Revenue Next Year6.99%
Revenue Next 2Y6.03%
Revenue Next 3Y5.99%
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
HCSG is valuated rather expensively with a Price/Earnings ratio of 20.95.
Based on the Price/Earnings ratio, HCSG is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of HCSG to the average of the S&P500 Index (27.53), we can say HCSG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.35, the valuation of HCSG can be described as rather expensive.
71.43% 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 (23.04), we can say HCSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCSG indicates a slightly more expensive valuation: HCSG is more expensive than 64.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HCSG is valued a bit cheaper than the industry average as 79.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.19 | ||
| EV/EBITDA | 43.64 |
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.
A more expensive valuation may be justified as HCSG's earnings are expected to grow with 26.43% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y32.9%
EPS Next 3Y26.43%
5. Dividend
5.1 Amount
No dividends for HCSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:HCSG (10/16/2025, 2:07:04 PM)
16.55
+0.08 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.2%
Inst Owner Change-1.02%
Ins Owners1.16%
Ins Owner Change0.01%
Market Cap1.20B
Analysts78
Price Target18.36 (10.94%)
Short Float %2.44%
Short Ratio2.06
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)13.28%
Min EPS beat(2)1.3%
Max EPS beat(2)25.27%
EPS beat(4)2
Avg EPS beat(4)0.43%
Min EPS beat(4)-20.37%
Max EPS beat(4)25.27%
EPS beat(8)4
Avg EPS beat(8)-28.7%
EPS beat(12)6
Avg EPS beat(12)-18.89%
EPS beat(16)7
Avg EPS beat(16)-15.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)-0.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-0.28%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)1
Avg Revenue beat(12)-1.63%
Revenue beat(16)1
Avg Revenue beat(16)-1.58%
PT rev (1m)7.46%
PT rev (3m)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.49%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 17.35 | ||
| P/S | 0.68 | ||
| P/FCF | 13.19 | ||
| P/OCF | 12.38 | ||
| P/B | 2.51 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 43.64 |
EPS(TTM)0.79
EY4.77%
EPS(NY)0.95
Fwd EY5.76%
FCF(TTM)1.26
FCFY7.58%
OCF(TTM)1.34
OCFY8.08%
SpS24.47
BVpS6.59
TBVpS5.37
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 2.27% | ||
| ROCE | 1.16% | ||
| ROIC | 0.85% | ||
| ROICexc | 1.1% | ||
| ROICexgc | 1.37% | ||
| OM | 0.38% | ||
| PM (TTM) | 0.61% | ||
| GM | 10.87% | ||
| FCFM | 5.13% |
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-Score6
Asset Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 36.47% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 419.72% | ||
| Profit Quality | 840.51% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z | 5.28 |
F-Score6
WACC8.98%
ROIC/WACC0.09
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)163.33%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%1150%
EPS Next Y64.33%
EPS Next 2Y32.9%
EPS Next 3Y26.43%
EPS Next 5YN/A
Revenue 1Y (TTM)5.17%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%7.55%
Revenue Next Year6.99%
Revenue Next 2Y6.03%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
EBIT growth 1Y-76.29%
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 1Y15246%
FCF growth 3Y-7.98%
FCF growth 5Y-22.8%
OCF growth 1Y2261.07%
OCF growth 3Y-6.01%
OCF growth 5Y-19.93%