HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
NASDAQ:HCSG - Nasdaq - US4219061086 - Common Stock - Currency: USD
HCSG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. While HCSG has a great health rating, its profitability is only average at the moment. HCSG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HCSG had positive earnings in the past year.
HCSG had a positive operating cash flow in the past year.
Each year in the past 5 years HCSG has 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 (5.03%) is better than 66.27% of its industry peers.
HCSG has a Return On Equity of 8.05%. This is in the better half of the industry: HCSG outperforms 63.86% of its industry peers.
HCSG has a Return On Invested Capital (5.96%) which is comparable to the rest of the industry.
HCSG had an Average Return On Invested Capital over the past 3 years of 5.75%. This is significantly below the industry average of 11.67%.
The 3 year average ROIC (5.75%) for HCSG is below the current ROIC(5.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 8.05% | ||
| ROIC | 5.96% |
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 2.38%. This is comparable to the rest of the industry: HCSG outperforms 54.22% of its industry peers.
In the last couple of years the Profit Margin of HCSG has declined.
HCSG has a Operating Margin of 2.91%. This is comparable to the rest of the industry: HCSG outperforms 40.96% of its industry peers.
In the last couple of years the Operating Margin of HCSG has declined.
HCSG has a Gross Margin of 13.32%. This is amonst the worse of the industry: HCSG underperforms 83.13% of its industry peers.
HCSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.91% | ||
| PM (TTM) | 2.38% | ||
| GM | 13.32% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HCSG is destroying value.
Compared to 1 year ago, HCSG has about the same amount of shares outstanding.
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 5.42. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
HCSG's Altman-Z score of 5.42 is amongst the best of the industry. HCSG outperforms 81.93% 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 | 5.42 |
ROIC/WACC0.64
WACC9.32%
2.3 Liquidity
A Current Ratio of 2.89 indicates that HCSG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.89, HCSG belongs to the best of the industry, outperforming 81.93% of the companies in the same industry.
A Quick Ratio of 2.81 indicates that HCSG has no problem at all paying its short term obligations.
HCSG has a Quick ratio of 2.81. This is amongst the best in the industry. HCSG outperforms 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.81 |
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.
HCSG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.73% yearly.
Looking at the last year, HCSG shows a small growth in Revenue. The Revenue has grown by 3.72% in the last year.
The Revenue has been decreasing by -1.40% on average over the past years.
EPS 1Y (TTM)27.27%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%9.52%
Revenue 1Y (TTM)3.72%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%5.72%
3.2 Future
The Earnings Per Share is expected to grow by 25.20% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.38% on average over the next years.
EPS Next Y58.78%
EPS Next 2Y30.46%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y5.11%
Revenue Next 3Y5.38%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.04, which means the current valuation is very expensive for HCSG.
Compared to the rest of the industry, the Price/Earnings ratio of HCSG is on the same level as its industry peers.
HCSG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 16.47, HCSG is valued correctly.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, HCSG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.04 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HCSG.
75.90% 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 | 14.07 | ||
| EV/EBITDA | 14.32 |
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 25.20% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y30.46%
EPS Next 3Y25.2%
5. Dividend
5.1 Amount
No dividends for HCSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.14
+0.21 (+1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.76%
Inst Owner Change-15.16%
Ins Owners1.15%
Ins Owner Change4.94%
Market Cap1.10B
Analysts76.36
Price Target15.3 (1.06%)
Short Float %2.61%
Short Ratio2.4
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)1
Avg EPS beat(2)2.45%
Min EPS beat(2)-20.37%
Max EPS beat(2)25.27%
EPS beat(4)1
Avg EPS beat(4)-27.37%
Min EPS beat(4)-109.9%
Max EPS beat(4)25.27%
EPS beat(8)3
Avg EPS beat(8)-32.54%
EPS beat(12)5
Avg EPS beat(12)-21.4%
EPS beat(16)6
Avg EPS beat(16)-19.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-1.11%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.8%
Revenue beat(16)1
Avg Revenue beat(16)-1.82%
PT rev (1m)0%
PT rev (3m)10.29%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)10.22%
EPS NY rev (1m)0.96%
EPS NY rev (3m)13.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.04 | ||
| Fwd PE | 16.47 | ||
| P/S | 0.63 | ||
| P/FCF | 14.07 | ||
| P/OCF | 13.09 | ||
| P/B | 2.15 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 14.32 |
EPS(TTM)0.56
EY3.7%
EPS(NY)0.92
Fwd EY6.07%
FCF(TTM)1.08
FCFY7.11%
OCF(TTM)1.16
OCFY7.64%
SpS23.86
BVpS7.05
TBVpS5.82
PEG (NY)0.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 8.05% | ||
| ROCE | 8.11% | ||
| ROIC | 5.96% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 8.87% | ||
| OM | 2.91% | ||
| PM (TTM) | 2.38% | ||
| GM | 13.32% | ||
| FCFM | 4.51% |
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%
ROICexcg growth 3Y-15.48%
ROICexcg 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-Score8
Asset Turnover2.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.39% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.65% | ||
| Profit Quality | 189.55% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z | 5.42 |
F-Score8
WACC9.32%
ROIC/WACC0.64
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)27.27%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%9.52%
EPS Next Y58.78%
EPS Next 2Y30.46%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue 1Y (TTM)3.72%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%5.72%
Revenue Next Year5.67%
Revenue Next 2Y5.11%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
EBIT growth 1Y22.82%
EBIT growth 3Y-6.18%
EBIT growth 5Y-10.62%
EBIT Next Year105.92%
EBIT Next 3Y33.22%
EBIT Next 5YN/A
FCF growth 1Y8617.22%
FCF growth 3Y-7.98%
FCF growth 5Y-22.8%
OCF growth 1Y1379.58%
OCF growth 3Y-6.01%
OCF growth 5Y-19.93%