Healthcare Services Group
Market Cap
US$2.2b
Last Updated
2021/03/07 23:25 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. More Details
Rewards
PE ratio (21.9x) is below the Commercial Services industry average (32.3x)
Risk Analysis
Earnings are forecast to decline by an average of 0.5% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with outstanding track record and pays a dividend.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: HCSG's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
HCSG
2.9%
US Commercial Services
-0.4%
US Market
1 Year Return
8.0%
HCSG
13.1%
US Commercial Services
36.2%
US Market
Return vs Industry: HCSG underperformed the US Commercial Services industry which returned 13.1% over the past year.
Return vs Market: HCSG underperformed the US Market which returned 36.2% over the past year.
Shareholder returns
| HCSG | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 2.9% | -0.4% |
| 30 Day | -10.6% | -1.4% | -2.9% |
| 90 Day | 21.6% | -0.009% | 5.0% |
| 1 Year | 11.7%8.0% | 14.5%13.1% | 39.1%36.2% |
| 3 Year | -33.5%-38.8% | 39.7%30.3% | 48.4%39.0% |
| 5 Year | -8.7%-18.8% | 114.6%92.3% | 116.5%92.4% |
Long-Term 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
2 weeks ago | Simply Wall St
Here's What We Like About Healthcare Services Group's (NASDAQ:HCSG) Upcoming Dividend2 weeks ago | Simply Wall St
Does This Valuation Of Healthcare Services Group, Inc. (NASDAQ:HCSG) Imply Investors Are Overpaying?Valuation
Is Healthcare Services Group undervalued compared to its fair value and its price relative to the market?
21.91x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HCSG ($28.95) is trading above our estimate of fair value ($15.78)
Significantly Below Fair Value: HCSG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HCSG is good value based on its PE Ratio (21.9x) compared to the US Commercial Services industry average (32.3x).
PE vs Market: HCSG is poor value based on its PE Ratio (21.9x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: HCSG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: HCSG is overvalued based on its PB Ratio (4.5x) compared to the US Commercial Services industry average (2.4x).
Next Steps
Future Growth
How is Healthcare Services Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-0.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HCSG's earnings are forecast to decline over the next 3 years (-0.5% per year).
Earnings vs Market: HCSG's earnings are forecast to decline over the next 3 years (-0.5% per year).
High Growth Earnings: HCSG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HCSG's revenue (0.9% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: HCSG's revenue (0.9% 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 (19.3%).
Next Steps
Past Performance
How has Healthcare Services Group performed over the past 5 years?
5.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCSG has high quality earnings.
Growing Profit Margin: HCSG's current net profit margins (5.6%) are higher than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: HCSG's earnings have grown by 5.3% per year over the past 5 years.
Accelerating Growth: HCSG's earnings growth over the past year (52.5%) exceeds its 5-year average (5.3% per year).
Earnings vs Industry: HCSG earnings growth over the past year (52.5%) exceeded the Commercial Services industry -10.4%.
Return on Equity
High ROE: HCSG's Return on Equity (20.5%) is considered high.
Next Steps
Financial Health
How is Healthcare Services Group's financial position?
Financial Position Analysis
Short Term Liabilities: HCSG's short term assets ($572.4M) exceed its short term liabilities ($162.3M).
Long Term Liabilities: HCSG's short term assets ($572.4M) exceed its long term liabilities ($142.3M).
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
Next Steps
Dividend
What is Healthcare Services Group current dividend yield, its reliability and sustainability?
2.85%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HCSG's dividend (2.85%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: HCSG's dividend (2.85%) is low compared to the top 25% of dividend payers in the US market (3.64%).
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: With its reasonable payout ratio (61.9%), HCSG's dividend 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 (70.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.4yrs
Average management tenure
CEO
Theodore Wahl (46 yo)
5.83yrs
Tenure
US$3,826,884
Compensation
Mr. Theodore Wahl, CPA has been the Chief Executive Officer of Healthcare Services Group Inc, since May 26, 2015 and its President since April 1, 2012. Mr. Wahl served as the Chief Operating Officer at Hea...
CEO Compensation Analysis
Compensation vs Market: Theodore's total compensation ($USD3.83M) is about average for companies of similar size in the US market ($USD3.62M).
Compensation vs Earnings: Theodore's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.83yrs | US$3.83m | 0.48% $ 10.4m | |
| Executive VP & CFO | 8.92yrs | US$1.13m | 0.030% $ 651.9k | |
| Executive VP & COO | 1.08yrs | US$1.03m | 0.022% $ 470.2k | |
| Executive VP | 7.92yrs | US$915.89k | 0.022% $ 482.8k | |
| Director & Advisor | 9.83yrs | US$1.47m | 0.089% $ 1.9m | |
| Chief Communications Officer | no data | no data | no data | |
| Executive Vice President | 8.92yrs | US$1.26m | no data | |
| Chief Revenue Officer | no data | no data | 0.0077% $ 167.6k |
8.4yrs
Average Tenure
47yo
Average Age
Experienced Management: HCSG's management team is seasoned and experienced (8.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.83yrs | US$3.83m | 0.48% $ 10.4m | |
| Director & Advisor | 9.83yrs | US$1.47m | 0.089% $ 1.9m | |
| Chairman Emeritus | 3.83yrs | US$42.61k | no data | |
| Lead Independent Director | 8.92yrs | US$96.91k | 0.027% $ 583.8k | |
| Independent Director | 38.17yrs | US$45.91k | 0.013% $ 286.8k | |
| Independent Director | 14.17yrs | US$56.91k | 0.00058% $ 12.5k | |
| Independent Director | 9.83yrs | US$46.91k | 0% $ 0 | |
| Independent Director | 9.17yrs | US$46.91k | 0% $ 0 | |
| Independent Chairman of the Board | 3.83yrs | US$85.91k | 0% $ 0 | |
| Independent Director | 0.83yr | no data | no data | |
| Independent Director | 3.17yrs | US$44.91k | 0% $ 0 |
9.2yrs
Average Tenure
58yo
Average Age
Experienced Board: HCSG's board of directors are considered experienced (9.2 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 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$2.163b
- Shares outstanding: 74.72m
- 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 | 2021/03/07 23:25 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| 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.