HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
USA - NASDAQ:HCSG - US4219061086 - Common Stock
18.03 USD
+0.15 (+0.84%)
18.03 USD
0 (0%)
Overall HCSG gets a fundamental rating of 5 out of 10. We evaluated HCSG against 82 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HCSG had positive earnings in the past year.
In the past year HCSG had a positive cash flow from operations.
Each year in the past 5 years HCSG has been profitable.
HCSG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.35%, HCSG perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
The Return On Equity of HCSG (2.27%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 0.85%, HCSG is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for HCSG is below the industry average of 10.49%.
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 has a Profit Margin of 0.61%. This is comparable to the rest of the industry: HCSG outperforms 48.78% of its industry peers.
In the last couple of years the Profit Margin of HCSG has declined.
With a Operating Margin value of 0.38%, HCSG is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of HCSG has declined.
Looking at the Gross Margin, with a value of 10.87%, HCSG is doing worse than 85.37% of the companies in the same industry.
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.
Compared to 1 year ago, HCSG has about the same amount of shares outstanding.
Compared to 5 years ago, HCSG has less shares outstanding
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 5.49 indicates that HCSG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.49, HCSG belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
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 | 5.49 |
ROIC/WACC0.09
WACC9.05%
2.3 Liquidity
HCSG has a Current Ratio of 2.49. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.49, HCSG is doing good in the industry, outperforming 79.27% of the companies in the same industry.
A Quick Ratio of 2.41 indicates that HCSG has no problem at all paying its short term obligations.
HCSG has a better Quick ratio (2.41) than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 112.50% over the past year.
HCSG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.73% yearly.
The Revenue has been growing slightly by 6.26% in the past 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
HCSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.43% yearly.
The Revenue is expected to grow by 5.99% on average over the next years.
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
The Price/Earnings ratio is 15.15, which indicates a correct valuation of HCSG.
Compared to the rest of the industry, the Price/Earnings ratio of HCSG indicates a somewhat cheap valuation: HCSG is cheaper than 75.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, HCSG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.91, the valuation of HCSG can be described as rather expensive.
68.29% of the companies in the same industry are more expensive than HCSG, based on the Price/Forward Earnings ratio.
HCSG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 18.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCSG indicates a slightly more expensive valuation: HCSG is more expensive than 64.63% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HCSG indicates a somewhat cheap valuation: HCSG is cheaper than 78.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.37 | ||
| EV/EBITDA | 48.53 |
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 26.43% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y32.9%
EPS Next 3Y26.43%
5. Dividend
5.1 Amount
HCSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.03
+0.15 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.2%
Inst Owner Change-1.88%
Ins Owners1.16%
Ins Owner Change-1.74%
Market Cap1.31B
Revenue(TTM)1.81B
Net Income(TTM)10.81M
Analysts78
Price Target21.76 (20.69%)
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)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)23.08%
PT rev (3m)42.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 18.91 | ||
| P/S | 0.74 | ||
| P/FCF | 14.37 | ||
| P/OCF | 13.49 | ||
| P/B | 2.74 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 48.53 |
EPS(TTM)1.19
EY6.6%
EPS(NY)0.95
Fwd EY5.29%
FCF(TTM)1.26
FCFY6.96%
OCF(TTM)1.34
OCFY7.41%
SpS24.47
BVpS6.59
TBVpS5.37
PEG (NY)0.24
PEG (5Y)N/A
Graham Number13.28
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%
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-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 | 5.49 |
F-Score6
WACC9.05%
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)112.5%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%210.53%
EPS Next Y64.33%
EPS Next 2Y32.9%
EPS Next 3Y26.43%
EPS Next 5YN/A
Revenue 1Y (TTM)6.26%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%8.45%
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 Year-11.19%
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%
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 15.15 and the Price/Book (PB) ratio is 2.74.
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 64.33% in the next year.