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HCSG

Healthcare Services GroupNasdaqGS:HCSG Stock Report

Last Price

US$17.52

Market Cap

US$1.3b

7D

-6.4%

1Y

-43.9%

Updated

21 Jan, 2022

Data

Company Financials +
HCSG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends5/6

HCSG Stock Overview

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States.

Healthcare Services Group Competitors

Stericycle

NasdaqGS:SRCL

US$5.3b

Price History & Performance

Summary of all time highs, changes and price drops for Healthcare Services Group
Historical stock prices
Current Share PriceUS$17.52
52 Week HighUS$35.80
52 Week LowUS$16.25
Beta0.31
1 Month Change2.64%
3 Month Change-12.97%
1 Year Change-43.86%
3 Year Change-59.78%
5 Year Change-56.19%
Change since IPO591.13%

Recent News & Updates

Dec 04
Is Healthcare Services Group, Inc. (NASDAQ:HCSG) Trading At A 27% Discount?

Is Healthcare Services Group, Inc. (NASDAQ:HCSG) Trading At A 27% Discount?

Does the December share price for Healthcare Services Group, Inc. ( NASDAQ:HCSG ) reflect what it's really worth...

Oct 23
Healthcare Services Group (NASDAQ:HCSG) Has Announced That It Will Be Increasing Its Dividend To US$0.21

Healthcare Services Group (NASDAQ:HCSG) Has Announced That It Will Be Increasing Its Dividend To US$0.21

Healthcare Services Group, Inc. ( NASDAQ:HCSG ) has announced that it will be increasing its dividend on the 23rd of...

Shareholder Returns

HCSGUS Commercial ServicesUS Market
7D-6.4%-4.7%-6.1%
1Y-43.9%10.1%4.2%

Return vs Industry: HCSG underperformed the US Commercial Services industry which returned 11.2% over the past year.

Return vs Market: HCSG underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is HCSG's price volatile compared to industry and market?
HCSG volatility
HCSG Average Weekly Movement4.3%
Commercial Services Industry Average Movement6.0%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: HCSG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HCSG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197644,200Dana Fresehttps://www.hcsgcorp.com

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of 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’s facility.

Healthcare Services Group Fundamentals Summary

How do Healthcare Services Group's earnings and revenue compare to its market cap?
HCSG fundamental statistics
Market CapUS$1.31b
Earnings (TTM)US$71.51m
Revenue (TTM)US$1.64b

18.3x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HCSG income statement (TTM)
RevenueUS$1.64b
Cost of RevenueUS$1.39b
Gross ProfitUS$254.64m
ExpensesUS$183.13m
EarningsUS$71.51m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.96
Gross Margin15.48%
Net Profit Margin4.35%
Debt/Equity Ratio0%

How did HCSG perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

87%

Payout Ratio

Valuation

Is Healthcare Services Group undervalued compared to its fair value and its price relative to the market?

41.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCSG ($17.52) is trading below our estimate of fair value ($29.68)

Significantly Below Fair Value: HCSG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HCSG is good value based on its PE Ratio (18.3x) compared to the US Commercial Services industry average (25.6x).

PE vs Market: HCSG is poor value based on its PE Ratio (18.3x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: HCSG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: HCSG is overvalued based on its PB Ratio (2.7x) compared to the US Commercial Services industry average (2.1x).


Future Growth

How is Healthcare Services Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCSG's forecast earnings growth (10.6% per year) is above the savings rate (2%).

Earnings vs Market: HCSG's earnings (10.6% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: HCSG's earnings are forecast to grow, but not significantly.

Revenue vs Market: HCSG's revenue (4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HCSG's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HCSG's Return on Equity is forecast to be low in 3 years time (15.3%).


Past Performance

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

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCSG has high quality earnings.

Growing Profit Margin: HCSG's current net profit margins (4.3%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: HCSG's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: HCSG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HCSG had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Commercial Services industry average (35.3%).


Return on Equity

High ROE: HCSG's Return on Equity (14.9%) is considered low.


Financial Health

How is Healthcare Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: HCSG's short term assets ($566.1M) exceed its short term liabilities ($153.9M).

Long Term Liabilities: HCSG's short term assets ($566.1M) exceed its long term liabilities ($159.5M).


Debt to Equity History and Analysis

Debt Level: HCSG is debt free.

Reducing Debt: HCSG had no debt 5 years ago.

Debt Coverage: HCSG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HCSG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

4.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HCSG's dividend (4.79%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: HCSG's dividend (4.79%) is in the top 25% of dividend payers in the US market (3.55%)


Stability and Growth of Payments

Stable Dividend: HCSG's dividends per share have been stable in the past 10 years.

Growing Dividend: HCSG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.2%), HCSG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HCSG's dividends in 3 years are not forecast to be well covered by earnings (92.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Dana Frese

0.083

Tenure

Mr. Dana Frese served as Senior Vice President of Claims at Healthcare Services Group Inc. since January 2013 and served as its General Counsel. Mr. Frese has been President and Chief Executive Officer of...


Leadership Team

Experienced Management: HCSG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: HCSG's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Healthcare Services Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Healthcare Services Group, Inc.
  • Ticker: HCSG
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Implied Market Cap: US$1.306b
  • Shares outstanding: 74.54m
  • Website: https://www.hcsgcorp.com

Number of Employees


Location

  • Healthcare Services Group, Inc.
  • 3220 Tillman Drive
  • Suite 300
  • Bensalem
  • Pennsylvania
  • 19020
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:36
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.