HCSG Stock Analysis: Healthcare | NASDAQ
Medical Care Facilities | NASDAQ, USA | Market Cap: 1.653m USD | 12M Return: 39.6% | US4219061086 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 17.7M
EPS Trend: 34.6%
Qual. Beats: 0
Rev. Trend: 98.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Healthcare Services Group, Inc. (HCSG) is a U.S.-based provider of management, administrative, and operating services to non-clinical departments of healthcare facilities, primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals. Founded in 1976 and headquartered in Bensalem, Pennsylvania, the company operates through two segments: Environmental Services, which covers housekeeping, laundry, linen, and facility maintenance, and Dietary, which manages food purchasing, meal preparation, and dietitian consulting. HCSG generates revenue through outsourced service contracts with long-term and post-acute care facilities, hospitals, and other healthcare operators, earning fees tied to the scope and scale of services delivered at each client site.
The company sits within the GICS Industrials sector under Diversified Support Services, a classification that groups firms offering outsourced, non-clinical operational support rather than direct patient care. HCSGs business model is contract-based, with long-tenured client relationships in a fragmented long-term care market, and its growth tends to track the outsourcing decisions of skilled nursing and senior living operators rather than overall healthcare utilization.
- Labor cost inflation pressures operating margins across both segments
- Nursing home occupancy recovery drives environmental and dietary revenue growth
- Medicaid reimbursement rate changes squeeze client facility budgets
| Net Income: 104.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -6.75 > 1.0 |
| NWC/Revenue: 20.02% < 20% (prev 21.29%; Δ -1.27% < -1%) |
| CFO/TA 0.14 > 3% & CFO 116.1m > Net Income 104.9m |
| Net Debt (-186.1m) to EBITDA (134.0m): -1.39 < 3 |
| Current Ratio: 2.82 > 1.5 & < 3 |
| Outstanding Shares: last quarter (69.4m) vs 12m ago -5.61% < -2% |
| Gross Margin: 16.34% > 18% (prev 12.49%; Δ 3.84% > 0.5%) |
| Asset Turnover: 227.2% > 50% (prev 224.8%; Δ 2.39% > 0%) |
| Interest Coverage Ratio: 70.82 > 6 (EBIT TTM 118.7m / Interest Expense TTM 1.68m) |
| A: 0.44 (Total Current Assets 582.8m - Total Current Liabilities 206.4m) / Total Assets 850.4m |
| B: 0.42 (Retained Earnings 357.3m / Total Assets 850.4m) |
| C: 0.14 (EBIT TTM 118.7m / Avg Total Assets 827.3m) |
| D: 1.67 (Book Value of Equity 531.5m / Total Liabilities 318.9m) |
| Altman-Z'' = 6.99 = AAA |
| DSRI: 0.98 (Receivables 334.1m/329.5m, Revenue 1.88b/1.81b) |
| GMI: 0.76 (GM 12.49% / 16.34%) |
| AQI: 1.14 (AQ_t 0.28 / AQ_t-1 0.24) |
| SGI: 1.04 (Revenue 1.88b / 1.81b) |
| TATA: -0.01 (NI 104.9m - CFO 116.1m) / TA 850.4m) |
| Beneish M = -3.15 (Cap -4..+1) = AA |
As of November 07, 2026, the stock is trading at USD 25.11 with a total of 876,826 shares traded. Over the past week, the price has changed by +1.74%, over one month by +18.50%, over three months by +9.94% and over the past year by +39.58%.
Current recommended Stop Loss: 22.80 (which is 9.2% or 2.6 ATR below the current price).
Healthcare has received a consensus analysts rating of 4.14. Therefore, it is recommended to buy HCSG.
- StrongBuy: 4
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 26.7 | 6.2% |
P/E Trailing = 16.5676
P/E Forward = 19.6464
P/S = 0.8796
P/B = 3.1315
P/EG = 2.3893
Revenue TTM = 1.88b USD
EBIT TTM = 118.7m USD
EBITDA TTM = 134.0m USD
Long Term Debt = 11.4m USD (estimated: total debt 18.0m - short term 6.61m)
Short Term Debt = 6.61m USD (from shortTermDebt, last quarter)
Debt = 18.0m USD (from shortLongTermDebtTotal, last quarter) (leases 18.0m already included)
Net Debt = -186.1m USD (calculated: Debt 18.0m - CCE 204.2m)
Enterprise Value = 1.47b USD (1.65b + Debt 18.0m - CCE 204.2m)
Interest Coverage Ratio = 70.82 (Ebit TTM 118.7m / Interest Expense TTM 1.68m)
EV/FCF = 13.39x (Enterprise Value 1.47b / FCF TTM 109.6m)
FCF Yield = 7.47% (FCF TTM 109.6m / Enterprise Value 1.47b)
FCF Margin = 5.83% (FCF TTM 109.6m / Revenue TTM 1.88b)
Net Margin = 5.58% (Net Income TTM 104.9m / Revenue TTM 1.88b)
Gross Margin = 16.34% ((Revenue TTM 1.88b - Cost of Revenue TTM 1.57b) / Revenue TTM)
Gross Margin QoQ = 16.76% (prev 15.89%)
Tobins Q-Ratio = 1.73 (Enterprise Value 1.47b / Total Assets 850.4m)
Interest Expense / Debt = 9.29% (Interest Expense 1.68m / Debt 18.0m)
Taxrate = 17.95% (22.9m / 127.8m)
NOPAT = 97.4m (EBIT 118.7m * (1 - 17.95%))
Current Ratio = 2.82 (Total Current Assets 582.8m / Total Current Liabilities 206.4m)
Debt / Equity = 0.03 (Debt 18.0m / totalStockholderEquity, last quarter 531.5m)
Debt / EBITDA = -1.39 (Net Debt -186.1m / EBITDA 134.0m)
Debt / FCF = -1.70 (Net Debt -186.1m / FCF TTM 109.6m)
Total Stockholder Equity = 518.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 12.68% (Net Income 104.9m / Total Assets 850.4m)
RoE = 20.22% (Net Income TTM 104.9m / Total Stockholder Equity 518.6m)
RoCE = 22.40% (EBIT 118.7m / Capital Employed (Equity 518.6m + L.T.Debt 11.4m))
RoIC = 17.50% (NOPAT 97.4m / Invested Capital 556.6m)
WACC = 8.77% (E(1.65b)/V(1.67b) * Re(8.78%) + D(18.0m)/V(1.67b) * Rd(9.29%) * (1-Tc(0.18)))
Discount Rate = 8.78% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.54 | Cagr: -2.74%
[DCF] Terminal Value 71.54% ; FCFF base≈128.9m ; Y1≈113.1m ; Y5≈91.4m
[DCF] Fair Price = 23.10 (EV 1.37b - Net Debt -186.1m = Equity 1.56b / Shares 67.4m; r=8.77% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 34.56 | EPS CAGR: 26.61% | SUE: 0.46 | # QB: 0
Revenue Correlation: 98.67 | Revenue CAGR: 4.97% | SUE: -0.38 | # QB: 0
EPS current Quarter (2027-03-31): EPS=0.29 | Chg30d=+0.52% | Revisions=-25% | Analysts=5
EPS current Year (2026-12-31): EPS=1.31 | Chg30d=+8.61% | Revisions=-25% | GrowthEPS=+61.2% | GrowthRev=+5.8%
EPS next Year (2027-12-31): EPS=1.24 | Chg30d=+0.84% | Revisions=-25% | GrowthEPS=-4.9% | GrowthRev=+11.0%
[Analyst] Revisions Ratio: -50% (up=0, down=3)