Healthcare Services Group (HCSG) Stock Overview
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
| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
HCSG Community Fair Values
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Analyst Price Targets
Healthcare Services Group, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$20.43 |
| 52 Week High | US$24.39 |
| 52 Week Low | US$12.66 |
| Beta | 0.86 |
| 1 Month Change | -8.88% |
| 3 Month Change | -1.83% |
| 1 Year Change | 43.87% |
| 3 Year Change | 43.87% |
| 5 Year Change | -31.88% |
| Change since IPO | 934.27% |
Recent News & Updates
Narrative Update • May 03
HCSG: Outsourced Services And Buybacks Will Drive Future Earnings Resilience
The analyst price target for Healthcare Services Group has been revised from $24 to $26.20 as analysts factor in modestly higher modeled revenue growth, a slightly lower profit margin, and updated P/E assumptions informed by recent target changes across firms such as RBC Capital, UBS, Benchmark, Baird, and BMO Capital. Analyst Commentary Recent Street research on Healthcare Services Group reflects a mix of constructive and cautious views, with several firms adjusting price targets and one initiating coverage with a neutral stance.Seeking Alpha • Apr 24
Healthcare Services Group: Transitioning Into A Bullish Momentum Play
Summary Healthcare Services Group, Inc. (HCSG) is upgraded to BUY following three consecutive quarters of strong earnings beats and robust technical momentum. HCSG's revenue growth exceeds 6% year-over-year, with EBIT growth over 17%, supported by stable client relationships and effective management of Genesis bankruptcy risks. Cash flow from operations remains strong at $23.4 million in Q1, with $214.6 million in cash and marketable securities and an undrawn $300 million credit facility. Long-term technicals show a multi-year saucer bottom, golden cross, and breakout above a multi-year downtrend, reinforcing the bullish outlook. Read the full article on Seeking AlphaRecent updates
Narrative Update • May 03
HCSG: Outsourced Services And Buybacks Will Drive Future Earnings Resilience
The analyst price target for Healthcare Services Group has been revised from $24 to $26.20 as analysts factor in modestly higher modeled revenue growth, a slightly lower profit margin, and updated P/E assumptions informed by recent target changes across firms such as RBC Capital, UBS, Benchmark, Baird, and BMO Capital. Analyst Commentary Recent Street research on Healthcare Services Group reflects a mix of constructive and cautious views, with several firms adjusting price targets and one initiating coverage with a neutral stance.Seeking Alpha • Apr 24
Healthcare Services Group: Transitioning Into A Bullish Momentum Play
Summary Healthcare Services Group, Inc. (HCSG) is upgraded to BUY following three consecutive quarters of strong earnings beats and robust technical momentum. HCSG's revenue growth exceeds 6% year-over-year, with EBIT growth over 17%, supported by stable client relationships and effective management of Genesis bankruptcy risks. Cash flow from operations remains strong at $23.4 million in Q1, with $214.6 million in cash and marketable securities and an undrawn $300 million credit facility. Long-term technicals show a multi-year saucer bottom, golden cross, and breakout above a multi-year downtrend, reinforcing the bullish outlook. Read the full article on Seeking AlphaNarrative Update • Apr 19
HCSG: Outsourced Services And Buybacks Will Support Future Earnings Resilience
The analyst price target for Healthcare Services Group has moved to $24.00, with analysts pointing to improving unit economics, supportive payor policies, resilient demand from skilled nursing facility clients, and limited perceived AI risk, while still identifying labor supply and valuation as key areas to watch. Analyst Commentary Recent research has focused on both the improving fundamentals at Healthcare Services Group and the risks that could affect execution and valuation from here.Narrative Update • Apr 03
HCSG: Outsourced Non Clinical Services And Buybacks Will Support Future Returns
Analysts have modestly raised their average price target on Healthcare Services Group to $24.00 per share, citing improving unit economics, stronger demand from skilled nursing facility clients, limited AI risk to the business model, and a more cautious stance on labor supply and current valuation following the recent rally. Analyst Commentary Bullish Takeaways Bullish analysts view improving unit economics as a key support for execution, suggesting the company may have more room to invest in service quality and client retention while still protecting margins.Narrative Update • Mar 19
HCSG: Outsourced Non Clinical Services And Buybacks Will Support Future Returns
Narrative Update on Healthcare Services Group The analyst price target for Healthcare Services Group has been refined to $24.00. This reflects updated views that balance improving unit economics, resilient demand from skilled nursing facilities, minimal AI risk to the business model, and ongoing caution around labor supply and current valuation.Narrative Update • Mar 05
HCSG: Outsourced Non Clinical Services And Buybacks Will Drive Future Upside
Analysts have trimmed their fair value estimate for Healthcare Services Group by $0.50 to $24.00. This reflects a slightly lower future P/E assumption, even as they highlight benefits from stronger end market demand, a stable labor backdrop, and potential upside from increasing outsourcing of non clinical services.Narrative Update • Feb 19
HCSG: Higher Future P/E Assumptions Will Support Stronger Upside Potential
The updated analyst work on Healthcare Services Group lifts the fair value estimate from $21.50 to $24.50, reflecting higher Street price targets and analyst expectations for a richer future P/E multiple, even as inputs such as revenue growth, profit margin, and discount rate are adjusted. Analyst Commentary Recent Street research shows several price target increases clustered around the same time, which lines up with the higher fair value estimate.Narrative Update • Feb 04
HCSG: Stable Assumptions At US$21.50 Fair Value Will Support Future Upside
Analysts have made only a marginal adjustment to their price target for Healthcare Services Group, holding fair value at about $21.50. Small tweaks to the discount rate, revenue growth, profit margin and future P/E assumptions did not materially change their outlook.Narrative Update • Jan 21
HCSG: Higher UBS Price Setting Will Support A Stronger Future Upside
Analysts have raised their price target on Healthcare Services Group by $2 to $22, reflecting updated views that incorporate a steady fair value estimate along with slightly revised assumptions for discount rate, revenue growth, profit margin, and future P/E. Analyst Commentary Recent research commentary focuses on how the updated US$22 price target lines up with assumptions around fair value, execution, and earnings power rather than signaling a dramatic shift in the story.Narrative Update • Jan 06
HCSG: Buybacks And Education Acquisitions Will Support A Higher Future Price
Analysts recently lifted their price target on Healthcare Services Group to $22 from $20, citing updated views on the stock's valuation, even as key model inputs such as fair value, discount rate, revenue growth, profit margin, and future P/E assumptions remain effectively unchanged. Analyst Commentary Recent commentary around the updated US$22 price target focuses less on new financial assumptions and more on how the market is pricing Healthcare Services Group relative to those existing assumptions.Narrative Update • Dec 23
HCSG: Modest Price Increase And Buybacks Will Support Balanced Future Outlook
Analysts modestly raised their price target on Healthcare Services Group to $22 from $20, reflecting slightly improved long term growth and valuation assumptions, despite only marginal adjustments to revenue growth and profit margin forecasts. Analyst Commentary Analysts describe the modest price target increase as a reflection of greater confidence in the company’s ability to sustain mid single digit revenue growth while gradually improving operating efficiency.Narrative Update • Dec 09
HCSG: Higher Price Objective And Buybacks Will Support Bullish Outlook
Analysts have raised their price target on Healthcare Services Group by $2 to $22, citing continued confidence in the company's outlook and maintaining a positive rating on the shares. Analyst Commentary Bullish analysts highlight that the higher price target reflects growing confidence that Healthcare Services Group can sustain its recent operational improvements, supporting an upward re-rating of the shares.Narrative Update • Nov 25
HCSG: Share Buybacks Will Drive Upside As Education Acquisitions Accelerate
Healthcare Services Group’s fair value price target has been modestly lowered by analysts from $22.00 to $21.50. This change reflects slight downward adjustments to future growth and margin estimates.Narrative Update • Nov 07
HCSG: Share Buybacks And Education Acquisitions Will Drive Future Upside
Analysts have raised their price target for Healthcare Services Group from $21.33 to $22.00. They cited modest improvements in projected revenue growth and a slight increase in discount rates as key factors behind the update.Narrative Update • Oct 23
Stable Industry Trends And Aging Demographics Will Drive Sector Opportunities
Analysts have raised their price target for Healthcare Services Group from $18.00 to $21.33 per share. They cite stable industry fundamentals and improved growth momentum as key drivers behind the upward revision.Narrative Update • Sep 21
Aging US Demand Will Expand Long-Term Care Opportunities
Despite a slight downgrade in consensus revenue growth forecasts, a higher forward P/E multiple has driven the consensus Analyst Price Target for Healthcare Services Group up from $17.00 to $18.00. What's in the News Repurchased 566,997 shares for $7.6 million in the latest tranche, completing 2,690,108 shares for $30.67 million under the buyback program.Analysis Article • Sep 12
Estimating The Fair Value Of Healthcare Services Group, Inc. (NASDAQ:HCSG)
Key Insights The projected fair value for Healthcare Services Group is US$16.56 based on 2 Stage Free Cash Flow to...Analysis Article • Apr 30
Earnings Beat: Healthcare Services Group, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Shareholders will be ecstatic, with their stake up 49% over the past week following Healthcare Services Group, Inc. 's...Analysis Article • Apr 24
Healthcare Services Group, Inc. (NASDAQ:HCSG) Not Flying Under The Radar
With a price-to-earnings (or "P/E") ratio of 21.6x Healthcare Services Group, Inc. ( NASDAQ:HCSG ) may be sending...Seeking Alpha • Mar 26
Healthcare Services Group: Waiting For More Evidence Of Trend-Change
Summary Potential bottoming technical pattern forming on the technical chart. Investors becoming interested once more in Healthcare Services Group due to attractive valuation, buoyant cash-flow & encouraging macro-trends. High receivables amid high costs continue to bring risk concerning forward-looking return on capital. Read the full article on Seeking AlphaAnalysis Article • Nov 19
Healthcare Services Group (NASDAQ:HCSG) Has A Rock Solid Balance Sheet
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...Analysis Article • Oct 08
Healthcare Services Group, Inc.'s (NASDAQ:HCSG) P/E Still Appears To Be Reasonable
With a price-to-earnings (or "P/E") ratio of 22.7x Healthcare Services Group, Inc. ( NASDAQ:HCSG ) may be sending...
New Narrative • Sep 24
Recovering Cash Flow And Expanding Services Set To Propel Growth Amid Challenges
Improvement in cash flow anticipated from resolving delayed cash collections, with increased demand for dining and nutrition services suggesting revenue growth.Analysis Article • Sep 17
Healthcare Services Group (NASDAQ:HCSG) Could Be Struggling To Allocate Capital
When researching a stock for investment, what can tell us that the company is in decline? When we see a declining...Analysis Article • Jul 25
Is Healthcare Services Group (NASDAQ:HCSG) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...Analysis Article • May 22
Here's Why It's Unlikely That Healthcare Services Group, Inc.'s (NASDAQ:HCSG) CEO Will See A Pay Rise This Year
Key Insights Healthcare Services Group's Annual General Meeting to take place on 28th of May Salary of US$1.01m is part...Analysis Article • Feb 06
Healthcare Services Group, Inc.'s (NASDAQ:HCSG) P/E Still Appears To Be Reasonable
With a price-to-earnings (or "P/E") ratio of 20.8x Healthcare Services Group, Inc. ( NASDAQ:HCSG ) may be sending...Seeking Alpha • Jan 30
Healthcare Services Group: Maintaining Our Bearish Stance
Summary Healthcare Services Group stock has dropped almost 35% since last year, underperforming the market. HCSG's return on capital is significantly lower than its 5-year average and the sector average. Ongoing uncertainty surrounding the nursing home staffing rule and bearish EPS revisions contribute to the 'Sell' rating on HCSG. Read the full article on Seeking AlphaAnalysis Article • Nov 16
Calculating The Intrinsic Value Of Healthcare Services Group, Inc. (NASDAQ:HCSG)
Key Insights The projected fair value for Healthcare Services Group is US$11.37 based on Dividend Discount Model...Analysis Article • Oct 26
Healthcare Services Group (NASDAQ:HCSG) May Have Issues Allocating Its Capital
When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...Analysis Article • Jul 31
These 4 Measures Indicate That Healthcare Services Group (NASDAQ:HCSG) Is Using Debt Safely
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...Analysis Article • Jun 09
Returns On Capital Signal Difficult Times Ahead For Healthcare Services Group (NASDAQ:HCSG)
If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? A business...Analysis Article • Apr 11
Healthcare Services Group, Inc.'s (NASDAQ:HCSG) Intrinsic Value Is Potentially 95% Above Its Share Price
Key Insights The projected fair value for Healthcare Services Group is US$28.01 based on 2 Stage Free Cash Flow to...Analysis Article • Mar 24
Is Healthcare Services Group (NASDAQ:HCSG) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...Analysis Article • Mar 03
Healthcare Services Group (NASDAQ:HCSG) Will Be Looking To Turn Around Its Returns
When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...Analysis Article • Dec 21
Is Healthcare Services Group (NASDAQ:HCSG) A Risky Investment?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...Analysis Article • Nov 30
Healthcare Services Group (NASDAQ:HCSG) May Have Issues Allocating Its Capital
When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in...Seeking Alpha • Oct 18
Healthcare Services Q3 2022 Earnings Preview
Healthcare Services (NASDAQ:HCSG) is scheduled to announce Q3 earnings results on Wednesday, October 19th, before market open. The consensus EPS Estimate is $0.07 (-46.2% Y/Y) and the consensus Revenue Estimate is $396.64M (-4.6% Y/Y). Over the last 3 months, EPS estimates have seen 0 upward revisions and 8 downward. Revenue estimates have seen 0 upward revisions and 8 downward.Analysis Article • Sep 22
Healthcare Services Group, Inc.'s (NASDAQ:HCSG) Intrinsic Value Is Potentially 23% Below Its Share Price
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Healthcare Services...Analysis Article • Sep 02
Is Healthcare Services Group (NASDAQ:HCSG) A Risky Investment?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...Seeking Alpha • Aug 25
Healthcare Services Group: Needs To Regain Support (Technical Analysis)
Summary Company misses earnings and sales expectations in the second quarter. The dividend and the price of the company's sales remain strong calling cards here. However, HCSG's technicals, low profitability, and declining margins demonstrate the company has a strong fight on its hands. Intro Healthcare Services Group, Inc. (HCSG) came across our desk from a screen we ran where the objective was to find dividend-paying companies which had attractive valuations, strong balance sheets and most of all were profitable. Shares of HCSG have been struggling for well over 2 years now, but fortunately the company has had the wherewithal to remain profitable. A big reason for this is the company's very low-interest expense on the income statement, which basically has ensured that a high percentage of the company´s operating profit can drop to the bottom line. However, when we delve more into the company's numbers and technicals, it becomes evident that caution is required here at least over the near term, As we can see below from the stock's long-term technical chart (where we have depicted two distinct multi-year trendlines), both support levels in recent months have been breached to the downside. The problem here is that if these support levels are not recovered soon, they will convert into very strong overhead resistance which is obviously something the bulls do not want to see. Remember, the chart has fully digested the company´s ongoing modification of service agreements and how these modifications will affect the company's financials going forward. What was encouraging, though, was that the recent second quarter top and bottom-line miss did not spike the short interest ratio (10.8%) to any significant degree. Management reported Q2 GAAP earnings of $0.09 per share and sales of $424.8 million both of which missed consensus estimates. This transpired in a quarterly net profit number of $6.8 million, which means HCSG has made just under $30 million in net earnings over the past four quarters. Suffice it to say, the dividend payout ratio ($62.7 million paid out in dividends over the past four quarters) presently comes in at 211% which is obviously not sustainable. Reporting almost a 6% dividend yield where the annual payout has now grown for 17 years straight is all well and good but only if it can be sustained by earnings and cash flow in the long run. HCSG Losing Long-Term Support (Stockcharts.com) Suffice it to say, when we have setups such as we have in HCSG at present, it is all about sizing up the company´s valuation and profitability (Quality) against the adverse trends concerning the dividend. Choosing successful investments is all about trying to skew the risk/reward profile in our favor as much as possible. Earnings Yield Notwithstanding the company's almost 6% dividend yield, when we divide trailing earnings of $29.7 million into the HCSG´s present market cap ($1.059 billion), we get a trailing earnings yield of 2.8%. In the present environment, a 2.8% return is simply not good enough especially when you take into account the prevailing inflation rate as well as the fact that a risk-free investment such as the US 10-year bond is now yielding well over 3%. However, when we look at bottom-line expectations in 2023 ($0.75 per share), this would constitute a 5.24% forward earnings yield for fiscal 2023. Obviously, the higher expected earnings would also have ramifications for the dividend but the recent dialing down of earnings revisions means that the $0.75 per share bottom-line figure for next year remains far from being achieved at this juncture. Profitability HCSG´s gross margin comes in at 11.44% over a trailing twelve-month average. The recent second quarter numbers of $424.9 million in top-line sales and gross profit of $45.5 million resulted in a gross margin of 10.71% which actually trailed the 12-month average. Suffice it to say, the return to top-line growth in HCSG really only has merit if that extra turnover can meaningfully impact the income statement.Shareholder Returns
| HCSG | US Commercial Services | US Market | |
|---|---|---|---|
| 7D | -3.9% | 1.2% | 1.1% |
| 1Y | 43.9% | -14.8% | 28.7% |
Return vs Industry: HCSG exceeded the US Commercial Services industry which returned -15% over the past year.
Return vs Market: HCSG exceeded the US Market which returned 28.7% over the past year.
Price Volatility
| HCSG volatility | |
|---|---|
| HCSG Average Weekly Movement | 7.1% |
| Commercial Services Industry Average Movement | 7.4% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.5% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: HCSG has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: HCSG's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1976 | 36,000 | Ted Wahl | 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. The company operates in two segments, Environmental Services and Dietary. Its Environmental Services segment engages in cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers’ facilities, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers’ facilities.
Healthcare Services Group, Inc. Fundamentals Summary
| HCSG fundamental statistics | |
|---|---|
| Market cap | US$1.40b |
| Earnings (TTM) | US$67.89m |
| Revenue (TTM) | US$1.85b |
20.7x
P/E Ratio0.8x
P/S RatioIs HCSG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HCSG income statement (TTM) | |
|---|---|
| Revenue | US$1.85b |
| Cost of Revenue | US$1.61b |
| Gross Profit | US$247.27m |
| Other Expenses | US$179.38m |
| Earnings | US$67.89m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.99 |
| Gross Margin | 13.35% |
| Net Profit Margin | 3.67% |
| Debt/Equity Ratio | 0% |
How did HCSG perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/24 15:22 |
| End of Day Share Price | 2026/05/22 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
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.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Healthcare Services Group, Inc. is covered by 16 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Andrew Wittmann | Baird |
| James Terwilliger | Benchmark Company |
| William Sutherland | Benchmark Company |