HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
USA - NASDAQ:HCSG - US4219061086 - Common Stock
17.26 USD
-0.22 (-1.26%)
17.26 USD
0 (0%)
Overall HCSG gets a fundamental rating of 6 out of 10. We evaluated HCSG against 82 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 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.
In the past 5 years HCSG has always been profitable.
Of the past 5 years HCSG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HCSG (4.94%) is better than 68.67% of its industry peers.
HCSG's Return On Equity of 8.01% is fine compared to the rest of the industry. HCSG outperforms 65.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.40%, HCSG is in line with its industry, outperforming 49.40% of the companies in the same industry.
HCSG had an Average Return On Invested Capital over the past 3 years of 5.75%. This is below the industry average of 10.49%.
| 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
Looking at the Profit Margin, with a value of 2.20%, HCSG is in line with its industry, outperforming 54.22% of the companies in the same industry.
HCSG's Profit Margin has declined in the last couple of years.
HCSG has a Operating Margin (2.02%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HCSG has declined.
HCSG has a Gross Margin of 12.49%. This is amonst the worse of the industry: HCSG underperforms 84.34% 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
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.
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 5.84. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HCSG (5.84) is better than 86.75% 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 | 5.84 |
ROIC/WACC0.49
WACC9.04%
2.3 Liquidity
A Current Ratio of 2.97 indicates that HCSG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.97, HCSG belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
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.
With an excellent Quick ratio value of 2.88, HCSG belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
HCSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 112.50%, 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.
The Revenue has been growing slightly by 6.26% in the past 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)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
HCSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.37% yearly.
HCSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.19% yearly.
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
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
The Price/Earnings ratio is 14.50, which indicates a correct valuation of HCSG.
78.31% of the companies in the same industry are more expensive than HCSG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.06, HCSG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.14, HCSG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCSG indicates a somewhat cheap valuation: HCSG is cheaper than 71.08% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HCSG to the average of the S&P500 Index (32.73), we can say HCSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HCSG.
HCSG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCSG is cheaper than 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 19.25 |
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.
A more expensive valuation may be justified as HCSG's earnings are expected to grow with 28.37% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y36.58%
EPS Next 3Y28.37%
5. Dividend
5.1 Amount
HCSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.26
-0.22 (-1.26%)
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 Cap1.25B
Revenue(TTM)1.81B
Net Income(TTM)39.73M
Analysts78
Price Target21.76 (26.07%)
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 | 14.5 | ||
| Fwd PE | 17.14 | ||
| P/S | 0.69 | ||
| P/FCF | 7.91 | ||
| P/OCF | 7.63 | ||
| P/B | 2.52 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 19.25 |
EPS(TTM)1.19
EY6.89%
EPS(NY)1.01
Fwd EY5.84%
FCF(TTM)2.18
FCFY12.64%
OCF(TTM)2.26
OCFY13.1%
SpS24.97
BVpS6.85
TBVpS5.64
PEG (NY)0.38
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 | 5.84 |
F-Score7
WACC9.04%
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 5 / 10 to HCSG.
What is the valuation status for HCSG stock?
ChartMill assigns a valuation rating of 5 / 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 3 / 10.
Can you provide the PE and PB ratios for HCSG stock?
The Price/Earnings (PE) ratio for HEALTHCARE SERVICES GROUP (HCSG) is 14.5 and the Price/Book (PB) ratio is 2.52.
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.