HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
USA - NASDAQ:HCSG - US4219061086 - Common Stock
17.74 USD
+0.15 (+0.85%)
17.74 USD
0 (0%)
Taking everything into account, HCSG scores 6 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HCSG had positive earnings in the past year.
HCSG had a positive operating cash flow in the past year.
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
HCSG has a Return On Assets of 4.94%. This is in the better half of the industry: HCSG outperforms 68.29% of its industry peers.
The Return On Equity of HCSG (8.01%) is better than 64.63% of its industry peers.
HCSG has a Return On Invested Capital (4.40%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HCSG is below the industry average of 10.51%.
| 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 in line with its industry peers.
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.
The Gross Margin of HCSG (12.49%) is worse than 84.15% of its industry peers.
HCSG's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for HCSG remains at a similar level compared to 1 year ago.
HCSG has less shares outstanding than it did 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 5.89. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
HCSG's Altman-Z score of 5.89 is amongst the best of the industry. HCSG outperforms 86.59% 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 | 5.89 |
ROIC/WACC0.49
WACC9.05%
2.3 Liquidity
HCSG has a Current Ratio of 2.97. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.97, HCSG belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
A Quick Ratio of 2.88 indicates that HCSG has no problem at all paying its short term obligations.
HCSG's Quick ratio of 2.88 is amongst the best of the industry. HCSG outperforms 89.02% of its industry peers.
| 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
Looking at the last year, HCSG shows a small growth in Revenue. The Revenue has grown by 6.26% in the last year.
The Revenue has been decreasing by -1.40% on average over the past years.
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
Based on estimates for the next years, HCSG will show a very strong growth in Earnings Per Share. The EPS will grow by 28.37% on average per year.
Based on estimates for the next years, HCSG will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.91, the valuation of HCSG can be described as correct.
HCSG's Price/Earnings ratio is a bit cheaper when compared to the industry. HCSG is cheaper than 78.05% of the companies in the same industry.
HCSG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.61, the valuation of HCSG can be described as rather expensive.
69.51% of the companies in the same industry are more expensive than HCSG, based on the Price/Forward Earnings ratio.
HCSG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
HCSG's Enterprise Value to EBITDA ratio is in line with the industry average.
90.24% of the companies in the same industry are more expensive than HCSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.13 | ||
| EV/EBITDA | 19.7 |
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 28.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y36.58%
EPS Next 3Y28.37%
5. Dividend
5.1 Amount
No dividends for HCSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.74
+0.15 (+0.85%)
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 Cap1.28B
Revenue(TTM)1.81B
Net Income(TTM)39.73M
Analysts78
Price Target21.76 (22.66%)
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 | 14.91 | ||
| Fwd PE | 17.61 | ||
| P/S | 0.71 | ||
| P/FCF | 8.13 | ||
| P/OCF | 7.84 | ||
| P/B | 2.59 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 19.7 |
EPS(TTM)1.19
EY6.71%
EPS(NY)1.01
Fwd EY5.68%
FCF(TTM)2.18
FCFY12.29%
OCF(TTM)2.26
OCFY12.75%
SpS24.97
BVpS6.85
TBVpS5.64
PEG (NY)0.39
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 | 5.89 |
F-Score7
WACC9.05%
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 14.91 and the Price/Book (PB) ratio is 2.59.
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.