Healthcare Services Group, Inc.
Healthcare Services Group, Inc. Fundamental Analysis
Healthcare Services Group, Inc. (HCSG) shows moderate financial fundamentals with a PE ratio of 25.68, profit margin of 3.21%, and ROE of 11.83%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 7.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HCSG's fundamental strength across five key dimensions:
Efficiency Score
WeakHCSG struggles to generate sufficient returns from assets.
Valuation Score
ModerateHCSG shows balanced valuation metrics.
Growth Score
ExcellentHCSG delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHCSG maintains a strong and stable balance sheet.
Profitability Score
WeakHCSG struggles to sustain strong margins.
Key Financial Metrics
Is HCSG Expensive or Cheap?
P/E Ratio
HCSG trades at 25.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HCSG's PEG of 0.50 indicates potential undervaluation.
Price to Book
The market values Healthcare Services Group, Inc. at 2.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.52 times EBITDA. This signals the market has high growth expectations.
How Well Does HCSG Make Money?
Net Profit Margin
For every $100 in sales, Healthcare Services Group, Inc. keeps $3.21 as profit after all expenses.
Operating Margin
Core operations generate 3.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.83 in profit for every $100 of shareholder equity.
ROA
Healthcare Services Group, Inc. generates $7.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Healthcare Services Group, Inc. generates limited operating cash flow of $144.91M, signaling weaker underlying cash strength.
Free Cash Flow
Healthcare Services Group, Inc. produces free cash flow of $139.10M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.97 in free cash annually.
FCF Yield
HCSG converts 9.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HCSG Stacks Against Its Sector Peers
| Metric | HCSG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.68 | 29.45 | Better (Cheaper) |
| ROE | 11.83% | 779.00% | Weak |
| Net Margin | 3.21% | -24936.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 3.38 | 4.65 | Strong Liquidity |
| ROA | 7.44% | -19344.00% (disorted) | Weak |
HCSG outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Healthcare Services Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.71%
Industry Style: Defensive, Growth, Innovation
GrowingEPS CAGR
-38.24%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-100.00%
Industry Style: Defensive, Growth, Innovation
Declining