18.64 USD
-0.45 (-2.36%)
18.64 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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
- In the past 5 years HCSG has always been profitable.
- Of the past 5 years HCSG 4 years had a positive operating cash flow.
1.2 Ratios
- HCSG has a better Return On Assets (4.94%) than 71.25% of its industry peers.
- HCSG has a better Return On Equity (8.01%) than 67.50% of its industry peers.
- HCSG has a Return On Invested Capital (4.40%) 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 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
- Looking at the Profit Margin, with a value of 2.20%, HCSG is in line with its industry, outperforming 58.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of HCSG has declined.
- Looking at the Operating Margin, with a value of 2.02%, HCSG is in line with its industry, outperforming 42.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of HCSG has declined.
- HCSG's Gross Margin of 12.49% is on the low side compared to the rest of the industry. HCSG is outperformed by 83.75% of its industry peers.
- In the last couple of years the Gross Margin of HCSG has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HCSG is destroying value.
- The number of shares outstanding for HCSG remains at a similar level compared to 1 year ago.
- 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 5.97 indicates that HCSG is not in any danger for bankruptcy at the moment.
- HCSG has a better Altman-Z score (5.97) than 85.00% of its industry peers.
- 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 | 5.97 |
ROIC/WACC0.48
WACC9.14%
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.
- HCSG's Current ratio of 2.97 is fine compared to the rest of the industry. HCSG outperforms 80.00% of its industry peers.
- A Quick Ratio of 2.88 indicates that HCSG has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.88, HCSG belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 112.50% over the past year.
- The earnings per share for HCSG have been decreasing by -13.73% on average. This is quite bad
- The Revenue has been growing slightly by 6.26% in the past year.
- Measured over the past years, HCSG shows a decrease in Revenue. The Revenue has been decreasing by -1.40% on average per year.
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
- The Earnings Per Share is expected to grow by 29.70% on average over the next years. This is a very strong growth
- Based on estimates for the next years, HCSG will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y14.28%
EPS Next 2Y34.52%
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
- With a Price/Earnings ratio of 15.66, HCSG is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of HCSG indicates a rather cheap valuation: HCSG is cheaper than 81.25% of the companies listed in the same industry.
- HCSG is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- HCSG is valuated rather expensively with a Price/Forward Earnings ratio of 19.08.
- Based on the Price/Forward Earnings ratio, HCSG is valued a bit cheaper than 76.25% of the companies in the same industry.
- HCSG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCSG is on the same level as its industry peers.
- HCSG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCSG is cheaper than 91.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 20.45 |
4.3 Compensation for Growth
- HCSG's 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)1.1
PEG (5Y)N/A
EPS Next 2Y34.52%
EPS Next 3Y29.7%
5. Dividend
5.1 Amount
- HCSG does not give a dividend.
| 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 14.28% in the next year.