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Healthcare Services Group

Nasdaq:HCSG
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HCSG
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
  • Healthcare Services Group has significant price volatility in the past 3 months.
HCSG Share Price and Events
7 Day Returns
-4.8%
NasdaqGS:HCSG
0.9%
US Commercial Services
2.4%
US Market
1 Year Returns
-30.2%
NasdaqGS:HCSG
4.2%
US Commercial Services
1.9%
US Market
HCSG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Healthcare Services Group (HCSG) -4.8% -22.9% -26.4% -30.2% -12.1% 8.6%
US Commercial Services 0.9% -0.2% 12% 4.2% 48.3% 71.2%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • HCSG underperformed the Commercial Services industry which returned 4.2% over the past year.
  • HCSG underperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
HCSG
Industry
5yr Volatility vs Market

Value

 Is Healthcare Services Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Healthcare Services Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Healthcare Services Group.

NasdaqGS:HCSG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:HCSG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.731 (1 + (1- 21%) (0%))
0.82
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.82 * 5.96%)
7.62%

Discounted Cash Flow Calculation for NasdaqGS:HCSG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Healthcare Services Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:HCSG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.62%)
2019 102.67 Analyst x7 95.40
2020 113.30 Analyst x7 97.83
2021 119.20 Analyst x1 95.64
2022 125.80 Analyst x1 93.79
2023 126.70 Analyst x1 87.78
2024 128.37 Est @ 1.32% 82.64
2025 130.61 Est @ 1.74% 78.13
2026 133.27 Est @ 2.04% 74.08
2027 136.26 Est @ 2.25% 70.38
2028 139.52 Est @ 2.39% 66.96
Present value of next 10 years cash flows $842.64
NasdaqGS:HCSG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $139.52 × (1 + 2.73%) ÷ (7.62% – 2.73%)
$2,933.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,933.07 ÷ (1 + 7.62%)10
$1,407.76
NasdaqGS:HCSG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $842.64 + $1,407.76
$2,250.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,250.39 / 73.80
$30.49
NasdaqGS:HCSG Discount to Share Price
Calculation Result
Value per share (USD) From above. $30.49
Current discount Discount to share price of $31.05
= -1 x ($31.05 - $30.49) / $30.49
-1.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Healthcare Services Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Healthcare Services Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Healthcare Services Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:HCSG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.13
NasdaqGS:HCSG Share Price ** NasdaqGS (2019-03-18) in USD $31.05
United States of America Commercial Services Industry PE Ratio Median Figure of 50 Publicly-Listed Commercial Services Companies 20.09x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Healthcare Services Group.

NasdaqGS:HCSG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:HCSG Share Price ÷ EPS (both in USD)

= 31.05 ÷ 1.13

27.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Healthcare Services Group is overvalued based on earnings compared to the US Commercial Services industry average.
  • Healthcare Services Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Healthcare Services Group's expected growth come at a high price?
Raw Data
NasdaqGS:HCSG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
18.9%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 34 Publicly-Listed Commercial Services Companies 1.63x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGS:HCSG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.51x ÷ 18.9%

1.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Healthcare Services Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Healthcare Services Group's assets?
Raw Data
NasdaqGS:HCSG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $5.95
NasdaqGS:HCSG Share Price * NasdaqGS (2019-03-18) in USD $31.05
United States of America Commercial Services Industry PB Ratio Median Figure of 86 Publicly-Listed Commercial Services Companies 2.09x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NasdaqGS:HCSG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:HCSG Share Price ÷ Book Value per Share (both in USD)

= 31.05 ÷ 5.95

5.22x

* Primary Listing of Healthcare Services Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Healthcare Services Group is overvalued based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess Healthcare Services Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Healthcare Services Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Healthcare Services Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Healthcare Services Group expected to grow at an attractive rate?
  • Healthcare Services Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Healthcare Services Group's earnings growth is expected to exceed the United States of America market average.
  • Healthcare Services Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:HCSG Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:HCSG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 18.9%
NasdaqGS:HCSG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4.4%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 13%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:HCSG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:HCSG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,437 1
2022-12-31 2,332 1
2021-12-31 2,351 129 151 2
2020-12-31 2,204 120 131 9
2019-12-31 2,024 109 113 8
NasdaqGS:HCSG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,009 84
2018-09-30 2,012 79 72
2018-06-30 1,996 42 70
2018-03-31 1,963 -3 66
2017-12-31 1,866 8 88
2017-09-30 1,765 7 88
2017-06-30 1,667 15 85
2017-03-31 1,582 66 81
2016-12-31 1,563 41 77
2016-09-30 1,530 49 66
2016-06-30 1,498 50 64
2016-03-31 1,466 79 61

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Healthcare Services Group's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
  • Healthcare Services Group's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:HCSG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Healthcare Services Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HCSG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.02 2.15 1.88 2.00
2020-12-31 1.74 1.88 1.57 8.00
2019-12-31 1.52 1.65 1.46 7.00
NasdaqGS:HCSG Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.13
2018-09-30 0.98
2018-06-30 0.94
2018-03-31 0.90
2017-12-31 1.20
2017-09-30 1.21
2017-06-30 1.16
2017-03-31 1.11
2016-12-31 1.06
2016-09-30 0.91
2016-06-30 0.88
2016-03-31 0.85

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Healthcare Services Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Healthcare Services Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Healthcare Services Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Healthcare Services Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Healthcare Services Group's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Healthcare Services Group's year on year earnings growth rate has been positive over the past 5 years.
  • Healthcare Services Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Healthcare Services Group's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.
Earnings and Revenue History
Healthcare Services Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Healthcare Services Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HCSG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,008.82 83.52 136.60
2018-09-30 2,011.82 72.16 138.20
2018-06-30 1,996.31 69.54 134.43
2018-03-31 1,963.45 66.28 132.30
2017-12-31 1,866.13 88.23 126.73
2017-09-30 1,765.29 88.34 120.37
2017-06-30 1,666.67 84.58 114.61
2017-03-31 1,582.35 80.79 108.28
2016-12-31 1,562.66 77.40 105.42
2016-09-30 1,530.18 66.23 114.55
2016-06-30 1,497.61 63.61 110.81
2016-03-31 1,466.41 61.13 110.27
2015-12-31 1,436.85 58.02 111.69
2015-09-30 1,412.39 64.36 99.48
2015-06-30 1,372.33 25.09 115.41
2015-03-31 1,336.26 22.73 112.53
2014-12-31 1,293.18 21.85 107.81
2014-09-30 1,255.39 11.83 112.93
2014-06-30 1,233.84 47.80 96.13
2014-03-31 1,188.15 46.81 93.25
2013-12-31 1,149.89 47.13 92.00
2013-09-30 1,123.10 54.48 81.71
2013-06-30 1,097.23 52.20 79.92
2013-03-31 1,090.73 50.59 79.09
2012-12-31 1,077.44 44.21 79.28
2012-09-30 1,050.64 41.98 78.97
2012-06-30 996.88 40.46 72.52
2012-03-31 941.28 38.97 69.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Healthcare Services Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Healthcare Services Group used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • Healthcare Services Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Healthcare Services Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Healthcare Services Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Healthcare Services Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Healthcare Services Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Healthcare Services Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Healthcare Services Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Healthcare Services Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Healthcare Services Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Healthcare Services Group Company Filings, last reported 2 months ago.

NasdaqGS:HCSG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 440.78 0.00 102.39
2018-09-30 419.58 9.96 89.90
2018-06-30 408.13 40.51 88.08
2018-03-31 394.34 26.00 84.86
2017-12-31 399.95 35.38 82.78
2017-09-30 390.46 25.00 81.39
2017-06-30 376.08 16.18 77.14
2017-03-31 356.48 0.00 116.49
2016-12-31 338.84 0.00 91.58
2016-09-30 331.10 0.00 104.95
2016-06-30 322.73 0.00 100.64
2016-03-31 312.96 0.00 101.48
2015-12-31 296.46 0.00 102.69
2015-09-30 297.12 0.00 103.57
2015-06-30 290.88 0.00 97.70
2015-03-31 285.07 0.00 70.15
2014-12-31 275.83 0.00 87.08
2014-09-30 268.88 0.00 64.75
2014-06-30 301.85 0.00 68.37
2014-03-31 293.79 0.00 83.34
2013-12-31 285.14 0.00 75.60
2013-09-30 288.87 0.00 62.12
2013-06-30 243.52 0.00 85.19
2013-03-31 240.21 0.00 77.29
2012-12-31 229.57 0.00 90.27
2012-09-30 224.52 0.00 74.53
2012-06-30 222.06 0.00 77.00
2012-03-31 219.63 0.00 69.61
  • Healthcare Services Group has no debt.
  • Healthcare Services Group had no debt 5 years ago.
  • Healthcare Services Group has no debt, it does not need to be covered by operating cash flow.
  • Healthcare Services Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Healthcare Services Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Healthcare Services Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Healthcare Services Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.53%
Current annual income from Healthcare Services Group dividends. Estimated to be 2.61% next year.
If you bought $2,000 of Healthcare Services Group shares you are expected to receive $51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Healthcare Services Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Healthcare Services Group's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:HCSG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:HCSG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.85 1.00
2020-12-31 0.82 5.00
2019-12-31 0.80 5.00
NasdaqGS:HCSG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-05 0.785 2.140
2018-10-19 0.780 1.831
2018-10-16 0.780 1.884
2018-07-27 0.775 1.887
2018-07-17 0.775 1.942
2018-04-27 0.770 1.935
2018-04-17 0.770 1.954
2018-01-30 0.765 1.671
2017-10-17 0.760 1.456
2017-07-28 0.755 1.445
2017-07-11 0.755 1.441
2017-04-28 0.750 1.599
2017-04-11 0.750 1.647
2017-01-31 0.745 1.784
2016-10-28 0.740 1.916
2016-10-11 0.740 1.986
2016-07-22 0.735 1.880
2016-07-12 0.735 1.897
2016-04-22 0.730 1.872
2016-04-12 0.730 1.954
2016-01-26 0.725 2.054
2015-10-23 0.720 2.003
2015-10-13 0.720 2.017
2015-07-22 0.715 2.097
2015-07-14 0.715 2.117
2015-04-23 0.710 2.249
2015-04-14 0.710 2.215
2015-01-27 0.705 2.162
2014-10-14 0.700 2.321
2014-07-08 0.695 2.517
2014-04-08 0.690 2.332
2014-01-28 0.685 2.493
2013-10-08 0.680 2.467
2013-07-16 0.675 2.694
2013-04-09 0.670 2.888
2013-01-22 0.665 2.716
2012-10-09 0.660 2.816
2012-07-10 0.655 2.978
2012-04-10 0.650 3.244
2012-01-24 0.645 3.204
2011-10-11 0.640 3.629
2011-07-12 0.635 4.153
2011-04-12 0.630 3.744
2011-01-25 0.625 3.632
2010-10-12 0.620 3.841
2010-07-13 0.613 4.154
2010-04-13 0.587 4.301
2010-02-01 0.560 3.802
2009-10-13 0.533 3.888
2009-07-15 0.507 4.197
2009-04-14 0.480 4.006
2009-03-19 0.453 4.424

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Healthcare Services Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Healthcare Services Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Healthcare Services Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Healthcare Services Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Healthcare Services Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Theodore Wahl
COMPENSATION $3,441,562
AGE 44
TENURE AS CEO 3.8 years
CEO Bio

Mr. Theodore Wahl, CPA has been the Chief Executive Officer of Healthcare Services Group Inc, since May 26, 2015 and its President since April 1, 2012. Mr. Wahl served as the Chief Operating Officer at Healthcare Services Group Inc, from January 2010 to May 25, 2015. He served as Executive Vice President at Healthcare Services Group Inc. since January 2010 to March 31, 2012 and also served as its Vice President of Finance from January 2009 to January 2010. Mr. Wahl served as a Facility Manager, District Manager and Regional Manger, as well as in a corporate financial management position within Healthcare Services Group for more than four years. Mr. Wahl served as Senior Manager at Ernst & Young’s Transaction Advisory Group for more than one year and more than five years with Ernst & Young’s Mergers and Acquisitions Group. Mr. Wahl has been a Director of Healthcare Services Group Inc. since May 2011.

CEO Compensation
  • Theodore's compensation has increased by more than 20% in the past year.
  • Theodore's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Healthcare Services Group management team in years:

6.1
Average Tenure
44
Average Age
  • The average tenure for the Healthcare Services Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Theodore Wahl

TITLE
President
COMPENSATION
$3M
AGE
44
TENURE
3.8 yrs

John Shea

TITLE
Executive VP & CFO
COMPENSATION
$935K
AGE
46
TENURE
6.9 yrs

David Hurlock

TITLE
Executive VP & COO
COMPENSATION
$950K
AGE
43

Andrew Kush

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$922K
AGE
40
TENURE
1.8 yrs

Michael McBryan

TITLE
Executive VP
COMPENSATION
$1M
AGE
53
TENURE
6.9 yrs

Jason Bundick

TITLE
Executive VP
COMPENSATION
$496K
AGE
41
TENURE
5.3 yrs

Bryan McCartney

TITLE
Executive Vice President
COMPENSATION
$1M
AGE
57
TENURE
6.9 yrs
Board of Directors Tenure

Average tenure and age of the Healthcare Services Group board of directors in years:

7.8
Average Tenure
65
Average Age
  • The tenure for the Healthcare Services Group board of directors is about average.
Board of Directors

Jude Visconto

TITLE
Chairman of the Board
COMPENSATION
$68K
AGE
44

Theodore Wahl

TITLE
President
COMPENSATION
$3M
AGE
44
TENURE
7.8 yrs

Daniel McCartney

TITLE
Chairman Emeritus
COMPENSATION
$43K
AGE
66
TENURE
1.8 yrs

Michael McBryan

TITLE
Executive VP
COMPENSATION
$1M
AGE
53
TENURE
7.8 yrs

John Briggs

TITLE
Lead Independent Director
COMPENSATION
$93K
AGE
68
TENURE
6.9 yrs

Diane Casey

TITLE
Independent Director
COMPENSATION
$49K
AGE
64
TENURE
7.8 yrs

Robert Frome

TITLE
Independent Director
COMPENSATION
$48K
AGE
80
TENURE
36.2 yrs

Robert Moss

TITLE
Independent Director
COMPENSATION
$53K
AGE
80
TENURE
27.2 yrs

Dino Ottaviano

TITLE
Independent Director
COMPENSATION
$53K
AGE
70
TENURE
12.2 yrs

John McFadden

TITLE
Independent Director
COMPENSATION
$49K
AGE
56
TENURE
7.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Healthcare Services Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Healthcare Services Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Sell Healthcare Services Group, Inc. (NASDAQ:HCSG) Because Of Its P/E Ratio?

To keep it practical, we'll show how Healthcare Services Group, Inc.'s (NASDAQ:HCSG) P/E ratio could help you assess the value on offer. … Healthcare Services Group has a price to earnings ratio of 33.83, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Healthcare Services Group, Inc. (NASDAQ:HCSG): What Does The Future Look Like?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … Based on Healthcare Services Group, Inc.'s (NASDAQ:HCSG) earnings update on 31 December 2018,

Simply Wall St -

Why Healthcare Services Group, Inc. (NASDAQ:HCSG) Is An Attractive Investment To Consider

Help shape the future of investing tools and you could win a $250 gift card! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past.

Simply Wall St -

What You Must Know About Healthcare Services Group, Inc.'s (NASDAQ:HCSG) Financial Health

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Healthcare Services Group, Inc. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … See our latest analysis for Healthcare Services Group

Simply Wall St -

Should You Investigate Healthcare Services Group, Inc. (NASDAQ:HCSG) At US$43.78?

(NASDAQ:HCSG), which is in the commercial services business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Healthcare Services Group’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Why You Should Buy Healthcare Services Group, Inc. (NASDAQ:HCSG) In This Bear Market

I'm talking about the well-proven, robust track record Healthcare Services Group, Inc.. … Check out our latest analysis for Healthcare Services Group. … Healthcare Services Group, Inc.

Simply Wall St -

Why Healthcare Services Group, Inc.’s (NASDAQ:HCSG) Return On Capital Employed Is Impressive

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Healthcare Services Group Inc (NASDAQ:HCSG): What’s In It For The Shareholders?

If you are currently a shareholder in Healthcare Services Group Inc (NASDAQ:HCSG), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Healthcare Services Group’s cash flow, which will help you understand the stock from a cash standpoint. … There are two methods I will use to evaluate the quality of Healthcare Services Group’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Should You Be Tempted To Sell Healthcare Services Group Inc (NASDAQ:HCSG) Because Of Its P/E Ratio?

To keep it practical, we'll show how Healthcare Services Group Inc's (NASDAQ:HCSG) P/E ratio could help you assess the value on offer. … Healthcare Services Group has a P/E ratio of 45.13, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Worry About Healthcare Services Group Inc's (NASDAQ:HCSG) CEO Pay Check?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Theodore Wahl's Compensation Compare With Similar Sized Companies. … Our data indicates that Healthcare Services Group Inc is worth US$3.2b, and total annual CEO compensation is US$3m.

Simply Wall St -

Company Info

Description

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of client’s facility, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at a client facility. The Dietary segment is involved in the food purchasing and meal preparation activities, as well as in the provision of professional dietitian services, which include the development of menus that meet the dietary needs of residents. This segment also offers clinical consulting services to facilities. As of December 31, 2017, the company provided its services to 3,500 facilities. Healthcare Services Group, Inc. was founded in 1976 and is based in Bensalem, Pennsylvania.

Details
Name: Healthcare Services Group, Inc.
HCSG
Exchange: NasdaqGS
Founded: 1976
$2,291,427,900
73,798,000
Website: http://www.hcsg.com
Address: Healthcare Services Group, Inc.
3220 Tillman Drive,
Suite 300,
Bensalem,
Pennsylvania, 19020,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HCSG Common Shares Nasdaq Global Select US USD 29. Nov 1983
DB HS1 Common Shares Deutsche Boerse AG DE EUR 29. Nov 1983
Number of employees
Current staff
Staff numbers
55,000
Healthcare Services Group employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 23:37
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.