18.91 USD
-0.1 (-0.53%)
18.91 USD
0 (0%)
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 has an excellent financial health rating, but there are some minor concerns on its 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.
- HCSG had positive earnings in each of the past 5 years.
- Of the past 5 years HCSG 4 years had a positive operating cash flow.
1.2 Ratios
- HCSG's Return On Assets of 4.94% is fine compared to the rest of the industry. HCSG outperforms 71.25% of its industry peers.
- With a decent Return On Equity value of 8.01%, HCSG is doing good in the industry, outperforming 67.50% of the companies in the same industry.
- HCSG's Return On Invested Capital of 4.40% is in line compared to the rest of the industry. HCSG outperforms 52.50% of its industry peers.
- HCSG had an Average Return On Invested Capital over the past 3 years of 5.75%. This 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
- The Profit Margin of HCSG (2.20%) is comparable to the rest of the industry.
- HCSG's Profit Margin has declined in the last couple of years.
- HCSG has a Operating Margin of 2.02%. This is comparable to the rest of the industry: HCSG outperforms 42.50% of its industry peers.
- HCSG's Operating Margin has declined in the last couple of years.
- The Gross Margin of HCSG (12.49%) is worse than 83.75% 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-1.28%
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.
- 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
- An Altman-Z score of 6.02 indicates that HCSG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HCSG (6.02) is better than 85.00% 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 | 6.02 |
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.
- With a decent Current ratio value of 2.97, HCSG is doing good in the industry, outperforming 80.00% 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.
- The Quick ratio of HCSG (2.88) is better than 86.25% of its industry peers.
| 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.
- 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 29.70% yearly.
- HCSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
EPS Next Y13.33%
EPS Next 2Y35.5%
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
- HCSG is valuated correctly with a Price/Earnings ratio of 15.89.
- 81.25% of the companies in the same industry are more expensive than HCSG, based on the Price/Earnings ratio.
- HCSG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- HCSG is valuated rather expensively with a Price/Forward Earnings ratio of 19.07.
- Based on the Price/Forward Earnings ratio, HCSG is valued a bit cheaper than 76.25% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HCSG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 19.07 |
4.2 Price Multiples
- HCSG's Enterprise Value to EBITDA is on the same level as the industry average.
- 91.25% of the companies in the same industry are more expensive than HCSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 20.94 |
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)1.19
PEG (5Y)N/A
EPS Next 2Y35.5%
EPS Next 3Y29.7%
5. Dividend
5.1 Amount
- No dividends for HCSG!.
| 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 13.33% in the next year.