HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
NASDAQ:HCSG - Nasdaq - US4219061086 - Common Stock - Currency: USD
HCSG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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.
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
Looking at the Return On Assets, with a value of 5.03%, HCSG is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
HCSG's Return On Equity of 8.05% is fine compared to the rest of the industry. HCSG outperforms 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 11.34%.
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.
In the last couple of years the Profit Margin of HCSG has declined.
HCSG has a Operating Margin (2.91%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HCSG has declined.
The Gross Margin of HCSG (13.32%) is worse than 83.13% 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 | 2.91% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HCSG is destroying value.
HCSG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for HCSG has been reduced compared to 5 years ago.
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 5.28 indicates that HCSG is not in any danger for bankruptcy at the moment.
HCSG has a better Altman-Z score (5.28) than 83.13% 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/WACC0.63
WACC9.4%
2.3 Liquidity
A Current Ratio of 2.89 indicates that HCSG has no problem at all paying its short term obligations.
HCSG has a better Current ratio (2.89) than 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.
HCSG has a Quick ratio of 2.81. This is amongst the best in the industry. HCSG outperforms 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.81 |
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.
HCSG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.72%.
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 25.20% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.38% on average over the next years.
EPS Next Y57.27%
EPS Next 2Y29.58%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue Next Year5.5%
Revenue Next 2Y5.03%
Revenue Next 3Y5.38%
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
Based on the Price/Earnings ratio of 25.18, the valuation of HCSG can be described as expensive.
60.24% of the companies in the same industry are more expensive than HCSG, based on the Price/Earnings ratio.
HCSG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 15.55, HCSG is valued correctly.
Based on the Price/Forward Earnings ratio, HCSG is valued a bit cheaper than the industry average as 72.29% of the companies are valued more expensively.
HCSG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 15.55 |
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 a bit cheaper when compared to the industry. HCSG is cheaper than 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 13.16 |
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 25.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y29.58%
EPS Next 3Y25.2%
5. Dividend
5.1 Amount
No dividends for HCSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.1
-0.06 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.97%
Inst Owner Change-15.16%
Ins Owners1.09%
Ins Owner Change4.98%
Market Cap1.03B
Analysts76.36
Price Target15.3 (8.51%)
Short Float %3.85%
Short Ratio4.11
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)11.11%
PT rev (3m)17.65%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)7.54%
EPS NY rev (1m)10.28%
EPS NY rev (3m)11.14%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 15.55 | ||
| P/S | 0.59 | ||
| P/FCF | 13.11 | ||
| P/OCF | 12.19 | ||
| P/B | 2 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)0.56
EY3.97%
EPS(NY)0.91
Fwd EY6.43%
FCF(TTM)1.08
FCFY7.63%
OCF(TTM)1.16
OCFY8.2%
SpS23.86
BVpS7.05
TBVpS5.82
PEG (NY)0.44
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 | 5.28 |
F-Score8
WACC9.4%
ROIC/WACC0.63
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 Y57.27%
EPS Next 2Y29.58%
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 Year5.5%
Revenue Next 2Y5.03%
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%