HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
NASDAQ:HCSG - Nasdaq - US4219061086 - Common Stock - Currency: USD
Overall HCSG gets a fundamental rating of 5 out of 10. We evaluated HCSG against 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 is not valued too expensively and it also shows a decent 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.
Of the past 5 years HCSG 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.92%, HCSG is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
HCSG has a better Return On Equity (7.90%) than 66.27% of its industry peers.
The Return On Invested Capital of HCSG (4.87%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HCSG is below the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 7.9% | ||
| ROIC | 4.87% |
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
The Profit Margin of HCSG (2.30%) is comparable to the rest of the industry.
HCSG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.36%, HCSG is in line with its industry, outperforming 40.96% of the companies in the same industry.
In the last couple of years the Operating Margin of HCSG has declined.
HCSG has a worse Gross Margin (13.27%) than 81.93% of its industry peers.
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 | 2.36% | ||
| PM (TTM) | 2.3% | ||
| GM | 13.27% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HCSG is destroying value.
The number of shares outstanding for HCSG remains at a similar level compared to 1 year ago.
The number of shares outstanding for HCSG has been reduced compared to 5 years ago.
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
HCSG has an Altman-Z score of 5.34. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
HCSG has a better Altman-Z score (5.34) than 85.54% 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 | 5.34 |
ROIC/WACC0.53
WACC9.17%
2.3 Liquidity
HCSG has a Current Ratio of 2.89. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
HCSG has a better Current ratio (2.89) than 81.93% of its industry peers.
HCSG has a Quick Ratio of 2.80. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.80, HCSG belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
HCSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.27%, which is quite impressive.
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.
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)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
The Earnings Per Share is expected to grow by 21.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.09% on average over the next years.
EPS Next Y42.61%
EPS Next 2Y25.4%
EPS Next 3Y21.94%
EPS Next 5YN/A
Revenue Next Year5.1%
Revenue Next 2Y4.59%
Revenue Next 3Y4.09%
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 26.37, HCSG can be considered very expensive at the moment.
HCSG's Price/Earnings ratio is a bit cheaper when compared to the industry. HCSG is cheaper than 60.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, HCSG is valued at the same level.
The Price/Forward Earnings ratio is 17.39, which indicates a rather expensive current valuation of HCSG.
Based on the Price/Forward Earnings ratio, HCSG is valued a bit cheaper than 73.49% of the companies in the same industry.
HCSG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
HCSG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as HCSG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.02 | ||
| EV/EBITDA | 16.38 |
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.
HCSG's earnings are expected to grow with 21.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y25.4%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
No dividends for HCSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:HCSG (5/2/2025, 12:57:44 PM)
14.77
+0.25 (+1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.97%
Inst Owner Change-0.92%
Ins Owners1.09%
Ins Owner Change4.29%
Market Cap1.08B
Analysts76.36
Price Target13.77 (-6.77%)
Short Float %4.04%
Short Ratio4.72
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)0
Avg EPS beat(2)-12.42%
Min EPS beat(2)-20.37%
Max EPS beat(2)-4.47%
EPS beat(4)1
Avg EPS beat(4)-31.31%
Min EPS beat(4)-109.9%
Max EPS beat(4)9.51%
EPS beat(8)3
Avg EPS beat(8)-31.83%
EPS beat(12)5
Avg EPS beat(12)-12.65%
EPS beat(16)6
Avg EPS beat(16)-20.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-1.11%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)1
Avg Revenue beat(12)-1.83%
Revenue beat(16)1
Avg Revenue beat(16)-1.83%
PT rev (1m)-0.74%
PT rev (3m)-0.74%
EPS NQ rev (1m)3.45%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)2.03%
EPS NY rev (3m)-10.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 17.39 | ||
| P/S | 0.63 | ||
| P/FCF | 44.02 | ||
| P/OCF | 34.97 | ||
| P/B | 2.15 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 16.38 |
EPS(TTM)0.56
EY3.79%
EPS(NY)0.85
Fwd EY5.75%
FCF(TTM)0.34
FCFY2.27%
OCF(TTM)0.42
OCFY2.86%
SpS23.53
BVpS6.86
TBVpS5.69
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 7.9% | ||
| ROCE | 6.63% | ||
| ROIC | 4.87% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 7.11% | ||
| OM | 2.36% | ||
| PM (TTM) | 2.3% | ||
| GM | 13.27% | ||
| FCFM | 1.43% |
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 Turnover2.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 43.44% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 6.23 | ||
| Cash Conversion | 55.99% | ||
| Profit Quality | 61.98% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 5.34 |
F-Score8
WACC9.17%
ROIC/WACC0.53
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 Y42.61%
EPS Next 2Y25.4%
EPS Next 3Y21.94%
EPS Next 5YN/A
Revenue 1Y (TTM)3.72%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%5.72%
Revenue Next Year5.1%
Revenue Next 2Y4.59%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
EBIT growth 1Y-9.97%
EBIT growth 3Y-6.18%
EBIT growth 5Y-10.62%
EBIT Next Year93.18%
EBIT Next 3Y33.82%
EBIT Next 5YN/A
FCF growth 1Y-35.77%
FCF growth 3Y-7.98%
FCF growth 5Y-22.8%
OCF growth 1Y-29.19%
OCF growth 3Y-6.01%
OCF growth 5Y-19.93%