HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
NASDAQ:HCSG - US4219061086 - Common Stock
15.61 USD
-0.06 (-0.38%)
15.61 USD
0 (0%)
HCSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. No worries on liquidiy or solvency for HCSG as it has an excellent financial health rating, but there are worries on the profitability. HCSG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HCSG was profitable.
HCSG had a positive operating cash flow in the past year.
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 has a Return On Assets (1.35%) which is in line with its industry peers.
With a Return On Equity value of 2.27%, HCSG perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
HCSG has a Return On Invested Capital of 0.85%. This is in the lower half of the industry: HCSG underperforms 61.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HCSG is significantly below the industry average of 10.78%.
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's Profit Margin of 0.61% is in line compared to the rest of the industry. HCSG outperforms 48.81% of its industry peers.
HCSG's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 0.38%, HCSG is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of HCSG has declined.
The Gross Margin of HCSG (10.87%) is worse than 84.52% of its industry peers.
HCSG's Gross Margin has been stable in the last couple of years.
| 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
HCSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 5.17 indicates that HCSG is not in any danger for bankruptcy at the moment.
HCSG has a better Altman-Z score (5.17) than 77.38% of its industry peers.
HCSG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.17 |
ROIC/WACC0.09
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.49 indicates that HCSG has no problem at all paying its short term obligations.
HCSG has a Current ratio of 2.49. This is in the better half of the industry: HCSG outperforms 79.76% of its industry peers.
HCSG has a Quick Ratio of 2.41. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.41, HCSG belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
HCSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 163.33%, which is quite impressive.
HCSG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.73% yearly.
Looking at the last year, HCSG shows a small growth in Revenue. The Revenue has grown by 5.17% 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)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
The Earnings Per Share is expected to grow by 26.43% on average over the next years. This is a very strong growth
Based on estimates for the next years, HCSG will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
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
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
HCSG is valuated rather expensively with a Price/Earnings ratio of 19.76.
Based on the Price/Earnings ratio, HCSG is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. HCSG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.37, the valuation of HCSG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCSG indicates a somewhat cheap valuation: HCSG is cheaper than 71.43% of the companies listed in the same industry.
HCSG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCSG is valued a bit more expensive than the industry average as 65.48% of the companies are valued more cheaply.
HCSG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCSG is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 41.12 |
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 26.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
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 |
15.61
-0.06 (-0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.7%
Inst Owner Change-1.39%
Ins Owners1.16%
Ins Owner Change0.64%
Market Cap1.13B
Analysts76.36
Price Target17.09 (9.48%)
Short Float %2.39%
Short Ratio1.93
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)11.67%
PT rev (3m)11.67%
EPS NQ rev (1m)3.6%
EPS NQ rev (3m)6.74%
EPS NY rev (1m)3.5%
EPS NY rev (3m)4.49%
Revenue NQ rev (1m)2%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 16.37 | ||
| P/S | 0.64 | ||
| P/FCF | 12.44 | ||
| P/OCF | 11.68 | ||
| P/B | 2.37 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 41.12 |
EPS(TTM)0.79
EY5.06%
EPS(NY)0.95
Fwd EY6.11%
FCF(TTM)1.26
FCFY8.04%
OCF(TTM)1.34
OCFY8.56%
SpS24.47
BVpS6.59
TBVpS5.37
PEG (NY)0.31
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 | 5.17 |
F-Score6
WACC9.18%
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 Year20.61%
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%