19.09 USD
+0.18 (+0.95%)
18.72 USD
-0.37 (-1.94%)
HCSG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. HCSG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
- HCSG had a positive operating cash flow in the past year.
- In the past 5 years HCSG has always been profitable.
- 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 71.25% of its industry peers.
- The Return On Equity of HCSG (8.01%) is better than 67.50% of its industry peers.
- HCSG has a Return On Invested Capital (4.40%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for HCSG is below the industry average of 10.58%.
| 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's Profit Margin of 2.20% is in line compared to the rest of the industry. HCSG outperforms 58.75% of its industry peers.
- HCSG's Profit Margin has declined in the last couple of years.
- HCSG has a Operating Margin (2.02%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of HCSG has declined.
- With a Gross Margin value of 12.49%, HCSG is not doing good in the industry: 83.75% of the companies in the same industry are doing better.
- 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 | 2.02% | ||
| 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-1.28%
GM growth 5Y1.43%
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.
- 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
- HCSG has an Altman-Z score of 6.03. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
- HCSG has a better Altman-Z score (6.03) than 85.00% 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 | 6.03 |
ROIC/WACC0.48
WACC9.15%
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.
- The Current ratio of HCSG (2.97) is better than 80.00% of its industry peers.
- HCSG has a Quick Ratio of 2.88. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.88, HCSG belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
| 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.
- 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 6.26%.
- 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 29.70% on average per year.
- Based on estimates for the next years, HCSG will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y14.28%
EPS Next 2Y34.52%
EPS Next 3Y29.7%
EPS Next 5YN/A
Revenue Next Year7.33%
Revenue Next 2Y6.3%
Revenue Next 3Y6.14%
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 16.04, HCSG is valued correctly.
- Based on the Price/Earnings ratio, HCSG is valued cheaper than 81.25% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HCSG to the average of the S&P500 Index (27.25), we can say HCSG is valued slightly cheaper.
- A Price/Forward Earnings ratio of 19.54 indicates a rather expensive valuation of HCSG.
- Based on the Price/Forward Earnings ratio, HCSG is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- HCSG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCSG is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HCSG indicates a rather cheap valuation: HCSG is cheaper than 91.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.52 | ||
| EV/EBITDA | 21.05 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- HCSG's earnings are expected to grow with 29.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y34.52%
EPS Next 3Y29.7%
5. Dividend
5.1 Amount
- HCSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for HEALTHCARE SERVICES GROUP?
ChartMill assigns a valuation rating of 6 / 10 to HEALTHCARE SERVICES GROUP (HCSG). This can be considered as Fairly Valued.
Can you provide the profitability details for HEALTHCARE SERVICES GROUP?
HEALTHCARE SERVICES GROUP (HCSG) has a profitability rating of 4 / 10.
Can you provide the financial health for HCSG stock?
The financial health rating of HEALTHCARE SERVICES GROUP (HCSG) is 9 / 10.
What is the earnings growth outlook for HEALTHCARE SERVICES GROUP?
The Earnings per Share (EPS) of HEALTHCARE SERVICES GROUP (HCSG) is expected to grow by 14.28% in the next year.