Healthcare Services Group
Market Cap
US$1.9b
Last Updated
2019/11/17 23:39 UTC
Data Sources
Company Financials +
Executive Summary
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.
Snowflake
Fundamentals
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Healthcare Services Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HCSG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.3%
HCSG
0.3%
US Commercial Services
0.7%
US Market
1 Year Return
-43.1%
HCSG
15.8%
US Commercial Services
13.7%
US Market
Return vs Industry: HCSG underperformed the US Commercial Services industry which returned 15.8% over the past year.
Return vs Market: HCSG underperformed the US Market which returned 13.7% over the past year.
Shareholder returns
| HCSG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | 0.3% | 0.7% |
| 30 Day | -0.9% | -0.8% | 4.7% |
| 90 Day | 12.7% | 2.3% | 6.1% |
| 1 Year | -41.8%-43.1% | 20.1%15.8% | 16.2%13.7% |
| 3 Year | -30.7%-34.3% | 59.7%49.3% | 48.8%39.2% |
| 5 Year | -8.0%-16.4% | 99.8%79.3% | 62.5%44.5% |
Price Volatility Vs. Market
How volatile is Healthcare Services Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
16 hours ago | Simply Wall St
2 Days To Buy Healthcare Services Group, Inc. (NASDAQ:HCSG) Before The Ex-Dividend Date1 week ago | Simply Wall St
Should Healthcare Services Group, Inc. (NASDAQ:HCSG) Be Part Of Your Dividend Portfolio?3 weeks ago | Simply Wall St
Earnings Miss: Healthcare Services Group, Inc. Missed EPS By 9.4% And Analysts Are Revising Their ForecastsValuation
Is Healthcare Services Group undervalued compared to its fair value and its price relative to the market?
31.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HCSG ($25.06) is trading below our estimate of fair value ($36.76)
Significantly Below Fair Value: HCSG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HCSG is good value based on its PE Ratio (24.1x) compared to the Commercial Services industry average (25.8x).
PE vs Market: HCSG is poor value based on its PE Ratio (24.1x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: HCSG is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: HCSG is overvalued based on its PB Ratio (4.1x) compared to the US Commercial Services industry average (1.9x).
Next Steps
Future Growth
How is Healthcare Services Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
17.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HCSG's forecast earnings growth (17.6% per year) is above the savings rate (2.7%).
Earnings vs Market: HCSG's earnings (17.6% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: HCSG's earnings are forecast to grow, but not significantly.
Revenue vs Market: HCSG's revenue (1.5% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: HCSG's revenue (1.5% 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 (19.5%).
Next Steps
Past Performance
How has Healthcare Services Group performed over the past 5 years?
19.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCSG has high quality earnings.
Growing Profit Margin: HCSG's current net profit margins (4.1%) are higher than last year (3.6%).
Past Earnings Growth Analysis
Earnings Trend: HCSG's earnings have grown by 19.6% per year over the past 5 years.
Accelerating Growth: HCSG's earnings growth over the past year (7%) is below its 5-year average (19.6% per year).
Earnings vs Industry: HCSG earnings growth over the past year (7%) exceeded the Commercial Services industry -3.1%.
Return on Equity
High ROE: HCSG's Return on Equity (17%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Healthcare Services Group's financial position?
Financial Position Analysis
Short Term Liabilities: HCSG's short term assets ($531.9M) exceeds its short term liabilities ($160.0M)
Long Term Liabilities: HCSG's short term assets ($531.9M) exceeds its long term liabilities (111.1M)
Debt to Equity History and Analysis
Debt Level: HCSG's debt to equity ratio (2.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if HCSG's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: HCSG's debt is well covered by operating cash flow (857.4%).
Interest Coverage: HCSG's interest payments on its debt are well covered by EBIT (99.5x coverage).
Balance Sheet
Inventory Level: HCSG has a low level of unsold assets or inventory.
Debt Coverage by Assets: HCSG's debt is covered by short term assets (assets are 53.2x debt).
Next Steps
Dividend
What is Healthcare Services Group's current dividend yield, its reliability and sustainability?
3.19%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Healthcare Services Group before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HCSG's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: HCSG's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (3.65%).
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 (76.2%), HCSG's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HCSG's dividends in 3 years are forecast to be covered by earnings (62.4% payout ratio).
Next Steps
Management
What is the CEO of Healthcare Services Group's salary, the management and board of directors tenure and is there insider trading?
6.8yrs
Average management tenure
CEO
Theodore Wahl (45yo)
4.5yrs
Tenure
US$3,901,098
Compensation
Mr. Theodore Wahl, CPA has been the Chief Executive Officer of Healthcare Services Group Inc, since May 26, 2015 and its President since April 1, 2012. Mr. Wahl served as the Chief Operating Officer at Hea ...
CEO Compensation Analysis
Compensation vs Market: Theodore's total compensation ($USD3.90M) is about average for companies of similar size in the US market ($USD3.92M).
Compensation vs Earnings: Theodore's compensation has been consistent with company performance over the past year.
Management Age and Tenure
6.8yrs
Average Tenure
46yo
Average Age
Experienced Management: HCSG's management team is seasoned and experienced (6.8 years average tenure).
Board Age and Tenure
8.5yrs
Average Tenure
66yo
Average Age
Experienced Board: HCSG's board of directors are considered experienced (8.5 years average tenure).
Insider Trading
Insider Buying: HCSG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 8,500 |
| Max Price | US$24.06 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,094 |
| Max Price | US$33.36 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Michael McBryan (54yo)
Executive VP
- Tenure: 8.5yrs
- Compensation: US$1.44m
Bryan McCartney (58yo)
Executive Vice President
- Tenure: 7.6yrs
- Compensation: US$1.26m
Theodore Wahl (45yo)
President
- Tenure: 4.5yrs
- Compensation: US$3.90m
John Shea (47yo)
Executive VP & CFO
- Tenure: 7.6yrs
- Compensation: US$1.08m
Jason Bundick (42yo)
Executive VP
- Tenure: 5.9yrs
- Compensation: US$496.34k
Andrew Kush (41yo)
Executive VP & Chief Administrative Officer
- Tenure: 2.4yrs
- Compensation: US$1.02m
Matthew McKee
Chief Communications Officer
- Tenure: 0yrs
Board Members
Daniel McCartney (67yo)
Chairman Emeritus
- Tenure: 2.5yrs
- Compensation: US$42.61k
Michael McBryan (54yo)
Executive VP
- Tenure: 8.5yrs
- Compensation: US$1.44m
John Briggs (69yo)
Lead Independent Director
- Tenure: 7.6yrs
- Compensation: US$102.41k
Robert Frome (81yo)
Independent Director
- Tenure: 36.8yrs
- Compensation: US$56.41k
Robert Moss (81yo)
Independent Director
- Tenure: 27.8yrs
- Compensation: US$61.41k
Dino Ottaviano (71yo)
Independent Director
- Tenure: 12.8yrs
- Compensation: US$61.41k
Theodore Wahl (45yo)
President
- Tenure: 4.5yrs
- Compensation: US$3.90m
Diane Casey (65yo)
Independent Director
- Tenure: 8.5yrs
- Compensation: US$57.41k
John McFadden (57yo)
Independent Director
- Tenure: 7.8yrs
- Compensation: US$57.41k
Jude Visconto (45yo)
Independent Chairman of the Board
- Tenure: 2.5yrs
- Compensation: US$96.41k
Company Information
Healthcare Services Group, Inc.'s company bio, 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
- Market Cap: US$1.857b
- Shares outstanding: 74.12m
- Website: https://www.hcsgcorp.com
Number of Employees
Location
- Healthcare Services Group, Inc.
- 3220 Tillman Drive
- Suite 300
- Bensalem
- Pennsylvania
- 19020
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HCSG | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Nov 1983 |
| HS1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1983 |
Biography
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, reti ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/17 23:39 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.