| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$17.52 |
| 52 Week High | US$35.80 |
| 52 Week Low | US$16.25 |
| Beta | 0.31 |
| 1 Month Change | 2.64% |
| 3 Month Change | -12.97% |
| 1 Year Change | -43.86% |
| 3 Year Change | -59.78% |
| 5 Year Change | -56.19% |
| Change since IPO | 591.13% |
Recent News & Updates
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...
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
| HCSG | US Commercial Services | US 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
| HCSG volatility | |
|---|---|
| HCSG Average Weekly Movement | 4.3% |
| Commercial Services Industry Average Movement | 6.0% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1976 | 44,200 | Dana Frese | https://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
| HCSG fundamental statistics | |
|---|---|
| Market Cap | US$1.31b |
| Earnings (TTM) | US$71.51m |
| Revenue (TTM) | US$1.64b |
18.3x
P/E Ratio0.8x
P/S RatioIs HCSG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HCSG income statement (TTM) | |
|---|---|
| Revenue | US$1.64b |
| Cost of Revenue | US$1.39b |
| Gross Profit | US$254.64m |
| Expenses | US$183.13m |
| Earnings | US$71.51m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.96 |
| Gross Margin | 15.48% |
| Net Profit Margin | 4.35% |
| Debt/Equity Ratio | 0% |
How did HCSG perform over the long term?
See historical performance and comparisonDividends
4.8%
Current Dividend Yield87%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:36 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.