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HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis

NASDAQ:HCSG - Nasdaq - US4219061086 - Common Stock

11.82  +0.12 (+1.03%)

After market: 11.82 0 (0%)

Fundamental Rating

6

Overall HCSG gets a fundamental rating of 6 out of 10. We evaluated HCSG against 83 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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4

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.
In the past 5 years HCSG has always been profitable.
HCSG had a positive operating cash flow in 4 of the past 5 years.
HCSG Yearly Net Income VS EBIT VS OCF VS FCFHCSG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M 200M

1.2 Ratios

The Return On Assets of HCSG (6.22%) is better than 73.17% of its industry peers.
The Return On Equity of HCSG (10.26%) is better than 68.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.85%, HCSG is in line with its industry, outperforming 52.44% of the companies in the same industry.
HCSG had an Average Return On Invested Capital over the past 3 years of 6.30%. This is below the industry average of 10.08%.
Industry RankSector Rank
ROA 6.22%
ROE 10.26%
ROIC 5.85%
ROA(3y)5.19%
ROA(5y)7.42%
ROE(3y)8.89%
ROE(5y)12.25%
ROIC(3y)6.3%
ROIC(5y)8.58%
HCSG Yearly ROA, ROE, ROICHCSG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 2.95%, HCSG is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
In the last couple of years the Profit Margin of HCSG has declined.
HCSG's Operating Margin of 2.92% is on the low side compared to the rest of the industry. HCSG is outperformed by 62.20% of its industry peers.
HCSG's Operating Margin has declined in the last couple of years.
HCSG has a Gross Margin of 14.24%. This is amonst the worse of the industry: HCSG underperforms 81.71% of its industry peers.
HCSG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 2.92%
PM (TTM) 2.95%
GM 14.24%
OM growth 3Y-28.74%
OM growth 5Y-13.18%
PM growth 3Y-25.73%
PM growth 5Y-11.24%
GM growth 3Y-5.66%
GM growth 5Y1.78%
HCSG Yearly Profit, Operating, Gross MarginsHCSG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

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9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HCSG is destroying value.
Compared to 1 year ago, HCSG has less shares outstanding
The number of shares outstanding for HCSG has been reduced compared to 5 years ago.
The debt/assets ratio for HCSG has been reduced compared to a year ago.
HCSG Yearly Shares OutstandingHCSG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
HCSG Yearly Total Debt VS Total AssetsHCSG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

An Altman-Z score of 4.87 indicates that HCSG is not in any danger for bankruptcy at the moment.
HCSG has a better Altman-Z score (4.87) than 80.49% of its industry peers.
HCSG has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.66, HCSG belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
HCSG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.05, HCSG belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.66
Altman-Z 4.87
ROIC/WACC0.61
WACC9.64%
HCSG Yearly LT Debt VS Equity VS FCFHCSG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

HCSG has a Current Ratio of 2.93. This indicates that HCSG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.93, HCSG belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
HCSG has a Quick Ratio of 2.85. 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 2.85, HCSG belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.93
Quick Ratio 2.85
HCSG Yearly Current Assets VS Current LiabilitesHCSG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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5

3. Growth

3.1 Past

HCSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.27%, which is quite impressive.
The earnings per share for HCSG have been decreasing by -18.61% on average. This is quite bad
Looking at the last year, HCSG shows a small growth in Revenue. The Revenue has grown by 1.81% in the last year.
The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)27.27%
EPS 3Y-32.83%
EPS 5Y-18.61%
EPS Q2Q%371.43%
Revenue 1Y (TTM)1.81%
Revenue growth 3Y-1.71%
Revenue growth 5Y-3.55%
Sales Q2Q%4.07%

3.2 Future

HCSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.63% yearly.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y47.9%
EPS Next 2Y46.7%
EPS Next 3Y32.63%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.83%
Revenue Next 3Y3.21%
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.
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.
HCSG Yearly Revenue VS EstimatesHCSG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
HCSG Yearly EPS VS EstimatesHCSG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

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6

4. Valuation

4.1 Price/Earnings Ratio

HCSG is valuated rather expensively with a Price/Earnings ratio of 21.11.
HCSG's Price/Earnings ratio is a bit cheaper when compared to the industry. HCSG is cheaper than 70.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, HCSG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.73, HCSG is valued correctly.
Based on the Price/Forward Earnings ratio, HCSG is valued cheaper than 84.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, HCSG is valued a bit cheaper.
Industry RankSector Rank
PE 21.11
Fwd PE 13.73
HCSG Price Earnings VS Forward Price EarningsHCSG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

HCSG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HCSG is cheaper than 67.07% of the companies in the same industry.
62.20% of the companies in the same industry are more expensive than HCSG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 22.99
EV/EBITDA 10.5
HCSG Per share dataHCSG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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.
A more expensive valuation may be justified as HCSG's earnings are expected to grow with 32.63% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y46.7%
EPS Next 3Y32.63%

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0

5. Dividend

5.1 Amount

No dividends for HCSG!.
Industry RankSector Rank
Dividend Yield N/A

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HEALTHCARE SERVICES GROUP

NASDAQ:HCSG (1/21/2025, 4:30:01 PM)

After market: 11.82 0 (0%)

11.82

+0.12 (+1.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-23 2024-10-23/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners102.35%
Inst Owner Change-0.45%
Ins Owners0.98%
Ins Owner Change2.85%
Market Cap866.29M
Analysts75
Price Target13.87 (17.34%)
Short Float %4.17%
Short Ratio7.34
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-57.19%
Min EPS beat(2)-109.9%
Max EPS beat(2)-4.47%
EPS beat(4)2
Avg EPS beat(4)-24.32%
Min EPS beat(4)-109.9%
Max EPS beat(4)9.51%
EPS beat(8)4
Avg EPS beat(8)-17.34%
EPS beat(12)5
Avg EPS beat(12)-17.45%
EPS beat(16)7
Avg EPS beat(16)-17.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.97%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-1.64%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)1
Avg Revenue beat(12)-1.83%
Revenue beat(16)1
Avg Revenue beat(16)-1.88%
PT rev (1m)-1.09%
PT rev (3m)-4.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 21.11
Fwd PE 13.73
P/S 0.51
P/FCF 22.99
P/OCF 19.69
P/B 1.77
P/tB 2.15
EV/EBITDA 10.5
EPS(TTM)0.56
EY4.74%
EPS(NY)0.86
Fwd EY7.28%
FCF(TTM)0.51
FCFY4.35%
OCF(TTM)0.6
OCFY5.08%
SpS23.22
BVpS6.67
TBVpS5.5
PEG (NY)0.44
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.22%
ROE 10.26%
ROCE 8.18%
ROIC 5.85%
ROICexc 7%
ROICexgc 8.35%
OM 2.92%
PM (TTM) 2.95%
GM 14.24%
FCFM 2.21%
ROA(3y)5.19%
ROA(5y)7.42%
ROE(3y)8.89%
ROE(5y)12.25%
ROIC(3y)6.3%
ROIC(5y)8.58%
ROICexc(3y)8.55%
ROICexc(5y)12.5%
ROICexgc(3y)10.9%
ROICexgc(5y)15.54%
ROCE(3y)8.7%
ROCE(5y)11.7%
ROICexcg growth 3Y-35.11%
ROICexcg growth 5Y-15.55%
ROICexc growth 3Y-35.13%
ROICexc growth 5Y-16.05%
OM growth 3Y-28.74%
OM growth 5Y-13.18%
PM growth 3Y-25.73%
PM growth 5Y-11.24%
GM growth 3Y-5.66%
GM growth 5Y1.78%
F-Score7
Asset Turnover2.11
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.66
Debt/EBITDA 0.39
Cap/Depr 42.88%
Cap/Sales 0.37%
Interest Coverage 250
Cash Conversion 68.23%
Profit Quality 75.14%
Current Ratio 2.93
Quick Ratio 2.85
Altman-Z 4.87
F-Score7
WACC9.64%
ROIC/WACC0.61
Cap/Depr(3y)36.82%
Cap/Depr(5y)34.44%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.27%
EPS 3Y-32.83%
EPS 5Y-18.61%
EPS Q2Q%371.43%
EPS Next Y47.9%
EPS Next 2Y46.7%
EPS Next 3Y32.63%
EPS Next 5YN/A
Revenue 1Y (TTM)1.81%
Revenue growth 3Y-1.71%
Revenue growth 5Y-3.55%
Sales Q2Q%4.07%
Revenue Next Year2.22%
Revenue Next 2Y2.83%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
EBIT growth 1Y25.97%
EBIT growth 3Y-29.96%
EBIT growth 5Y-16.26%
EBIT Next Year65.06%
EBIT Next 3Y34.47%
EBIT Next 5YN/A
FCF growth 1Y810.96%
FCF growth 3Y-43.65%
FCF growth 5Y-12.7%
OCF growth 1Y14565.3%
OCF growth 3Y-41.49%
OCF growth 5Y-11.47%