HEALTHCARE SERVICES GROUP (HCSG) Stock Fundamental Analysis
NASDAQ:HCSG - Nasdaq - US4219061086 - Common Stock - Currency: USD
Taking everything into account, HCSG scores 6 out of 10 in our fundamental rating. HCSG was compared to 84 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HCSG was profitable.
In the past year HCSG had a positive cash flow from operations.
HCSG had positive earnings in each of the past 5 years.
In multiple years HCSG reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.22%, HCSG is doing good in the industry, outperforming 71.95% of the companies in the same industry.
HCSG has a Return On Equity of 10.26%. This is in the better half of the industry: HCSG outperforms 69.51% of its industry peers.
The Return On Invested Capital of HCSG (5.77%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HCSG is below the industry average of 10.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 10.26% | ||
| ROIC | 5.77% |
ROA(3y)4.86%
ROA(5y)6.61%
ROE(3y)8.14%
ROE(5y)11.02%
ROIC(3y)5.77%
ROIC(5y)7.58%
1.3 Margins
HCSG's Profit Margin of 2.95% is fine compared to the rest of the industry. HCSG outperforms 60.98% of its industry peers.
In the last couple of years the Profit Margin of HCSG has declined.
The Operating Margin of HCSG (2.92%) is worse than 62.20% of its industry peers.
In the last couple of years the Operating Margin of HCSG has declined.
With a Gross Margin value of 14.24%, HCSG is not doing good in the industry: 81.71% of the companies in the same industry are doing better.
HCSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.92% | ||
| PM (TTM) | 2.95% | ||
| GM | 14.24% |
OM growth 3Y-7.13%
OM growth 5Y-9.11%
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.
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 4.75. This indicates that HCSG is financially healthy and has little risk of bankruptcy at the moment.
HCSG's Altman-Z score of 4.75 is amongst the best of the industry. HCSG outperforms 81.71% of its industry peers.
The Debt to FCF ratio of HCSG is 0.66, which is an excellent value as it means it would take HCSG, only 0.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HCSG (0.66) is better than 89.02% of its industry peers.
HCSG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.05, HCSG belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 4.75 |
ROIC/WACC0.61
WACC9.51%
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.
The Current ratio of HCSG (2.93) is better than 82.93% of its industry peers.
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.
The Quick ratio of HCSG (2.85) is better than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.00% 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 2.65% in the past year.
The Revenue has been decreasing by -1.40% on average over the past years.
EPS 1Y (TTM)35%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%3.3%
3.2 Future
HCSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.94% yearly.
The Revenue is expected to grow by 4.09% on average over the next years.
EPS Next Y41.51%
EPS Next 2Y27.9%
EPS Next 3Y21.94%
EPS Next 5YN/A
Revenue Next Year4.64%
Revenue Next 2Y4.37%
Revenue Next 3Y4.09%
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 19.54, which indicates a rather expensive current valuation of HCSG.
Based on the Price/Earnings ratio, HCSG is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
HCSG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
HCSG is valuated correctly with a Price/Forward Earnings ratio of 13.81.
Based on the Price/Forward Earnings ratio, HCSG is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
HCSG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCSG indicates a somewhat cheap valuation: HCSG is cheaper than 70.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HCSG is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 9.45 |
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.
HCSG's earnings are expected to grow with 21.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y27.9%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
No dividends for HCSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.55
-0.23 (-2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.35%
Inst Owner Change21.38%
Ins Owners0.98%
Ins Owner Change2.85%
Market Cap773.21M
Analysts75
Price Target13.01 (23.32%)
Short Float %3.86%
Short Ratio6.5
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)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)0%
PT rev (3m)-4.56%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 13.81 | ||
| P/S | 0.45 | ||
| P/FCF | 20.52 | ||
| P/OCF | 17.57 | ||
| P/B | 1.58 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)0.54
EY5.12%
EPS(NY)0.76
Fwd EY7.24%
FCF(TTM)0.51
FCFY4.87%
OCF(TTM)0.6
OCFY5.69%
SpS23.22
BVpS6.67
TBVpS5.5
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 10.26% | ||
| ROCE | 8.18% | ||
| ROIC | 5.77% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 8.23% | ||
| OM | 2.92% | ||
| PM (TTM) | 2.95% | ||
| GM | 14.24% | ||
| FCFM | 2.21% |
ROA(3y)4.86%
ROA(5y)6.61%
ROE(3y)8.14%
ROE(5y)11.02%
ROIC(3y)5.77%
ROIC(5y)7.58%
ROICexc(3y)7.33%
ROICexc(5y)11.17%
ROICexgc(3y)9.07%
ROICexgc(5y)13.99%
ROCE(3y)8.1%
ROCE(5y)10.46%
ROICexcg growth 3Y-15.1%
ROICexcg growth 5Y-11.51%
ROICexc growth 3Y-12.6%
ROICexc growth 5Y-11.74%
OM growth 3Y-7.13%
OM growth 5Y-9.11%
PM growth 3Y-6.29%
PM growth 5Y-8.1%
GM growth 3Y-1.28%
GM growth 5Y1.43%
F-Score7
Asset Turnover2.11
Health
| Industry Rank | Sector 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 | 4.75 |
F-Score7
WACC9.51%
ROIC/WACC0.61
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35%
EPS 3Y-4.5%
EPS 5Y-13.73%
EPS Q2Q%-11.11%
EPS Next Y41.51%
EPS Next 2Y27.9%
EPS Next 3Y21.94%
EPS Next 5YN/A
Revenue 1Y (TTM)2.65%
Revenue growth 3Y1.47%
Revenue growth 5Y-1.4%
Sales Q2Q%3.3%
Revenue Next Year4.64%
Revenue Next 2Y4.37%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
EBIT growth 1Y25.97%
EBIT growth 3Y-5.76%
EBIT growth 5Y-10.38%
EBIT Next Year105.27%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y216.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y158.8%
OCF growth 3YN/A
OCF growth 5YN/A