(HCSG) Healthcare - Ratings and Ratios
Housekeeping, Laundry, Dietary, Facility Maintenance, Clinical Consulting
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 35.5% |
| Value at Risk 5%th | 51.5% |
| Relative Tail Risk | -11.71% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.99 |
| Alpha | 38.81 |
| CAGR/Max DD | 0.32 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.550 |
| Beta | 0.715 |
| Beta Downside | 0.321 |
| Drawdowns 3y | |
|---|---|
| Max DD | 42.54% |
| Mean DD | 19.95% |
| Median DD | 21.97% |
Description: HCSG Healthcare November 16, 2025
Healthcare Services Group, Inc. (NASDAQ:HCSG) delivers outsourced management, administrative, and operational support to the housekeeping, laundry, linen, facility-maintenance, and dietary departments of U.S. nursing homes, retirement communities, rehabilitation centers, and hospitals.
The company operates two distinct segments. The **Housekeeping** segment handles cleaning, disinfecting, and sanitizing resident rooms and common areas, plus laundering of linens, uniforms, and personal clothing. The **Dietary** segment manages food procurement, meal preparation, menu design, and on-site dietitian consulting for long-term and post-acute care facilities.
Key industry drivers include the aging of the Baby Boomer cohort (projected to add ~10 million new long-term-care residents by 2030) and persistent labor shortages that increase demand for third-party service providers. Recent financials show FY 2023 revenue of roughly **$300 million** with an operating margin near **6 %**, while the company’s backlog of multi-year contracts grew to **$85 million**, reflecting strong client retention in a price-sensitive market.
Given the sensitivity of HCSG’s earnings to Medicare/Medicaid reimbursement trends and inflation-driven labor costs, analysts should monitor changes in federal reimbursement policies and regional wage pressures as they can materially affect profitability.
For a deeper quantitative view, you may find ValueRay’s platform useful for benchmarking HCSG against peers and assessing its valuation dynamics.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (39.7m TTM) > 0 and > 6% of Revenue (6% = 108.5m TTM) |
| FCFTA 0.20 (>2.0%) and ΔFCFTA 14.96pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 21.29% (prev 22.38%; Δ -1.09pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.20 (>3.0%) and CFO 163.8m > Net Income 39.7m (YES >=105%, WARN >=100%) |
| Net Debt (-110.5m) to EBITDA (73.0m) ratio: -1.51 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.97 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (73.5m) change vs 12m ago -0.57% (target <= -2.0% for YES) |
| Gross Margin 12.49% (prev 14.28%; Δ -1.78pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 224.6% (prev 211.2%; Δ 13.44pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 20.15 (EBITDA TTM 73.0m / Interest Expense TTM 2.80m) >= 6 (WARN >= 3) |
Altman Z'' 5.49
| (A) 0.48 = (Total Current Assets 580.6m - Total Current Liabilities 195.6m) / Total Assets 804.3m |
| (B) 0.31 = Retained Earnings (Balance) 252.4m / Total Assets 804.3m |
| (C) 0.07 = EBIT TTM 56.5m / Avg Total Assets 805.1m |
| (D) 0.82 = Book Value of Equity 252.5m / Total Liabilities 308.3m |
| Total Rating: 5.49 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 70.84
| 1. Piotroski 7.0pt |
| 2. FCF Yield 13.20% |
| 3. FCF Margin 8.73% |
| 4. Debt/Equity 0.03 |
| 5. Debt/Ebitda -1.51 |
| 6. ROIC - WACC (= -0.08)% |
| 7. RoE 8.00% |
| 8. Rev. Trend 74.84% |
| 9. EPS Trend 9.53% |
What is the price of HCSG shares?
Over the past week, the price has changed by +0.53%, over one month by +4.95%, over three months by +19.27% and over the past year by +52.87%.
Is HCSG a buy, sell or hold?
- Strong Buy: 2
- Buy: 0
- Hold: 3
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the HCSG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 21.5 | 13.9% |
| Analysts Target Price | 21.5 | 13.9% |
| ValueRay Target Price | 20.9 | 10.8% |
HCSG Fundamental Data Overview December 02, 2025
P/E Trailing = 34.7778
P/E Forward = 18.1818
P/S = 0.752
P/B = 2.6676
P/EG = 2.3893
Beta = 0.765
Revenue TTM = 1.81b USD
EBIT TTM = 56.5m USD
EBITDA TTM = 73.0m USD
Long Term Debt = 13.9m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 7.64m USD (from shortTermDebt, last quarter)
Debt = 13.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -110.5m USD (from netDebt column, last quarter)
Enterprise Value = 1.20b USD (1.36b + Debt 13.9m - CCE 177.5m)
Interest Coverage Ratio = 20.15 (Ebit TTM 56.5m / Interest Expense TTM 2.80m)
FCF Yield = 13.20% (FCF TTM 157.9m / Enterprise Value 1.20b)
FCF Margin = 8.73% (FCF TTM 157.9m / Revenue TTM 1.81b)
Net Margin = 2.20% (Net Income TTM 39.7m / Revenue TTM 1.81b)
Gross Margin = 12.49% ((Revenue TTM 1.81b - Cost of Revenue TTM 1.58b) / Revenue TTM)
Gross Margin QoQ = 20.76% (prev 0.65%)
Tobins Q-Ratio = 1.49 (Enterprise Value 1.20b / Total Assets 804.3m)
Interest Expense / Debt = 5.87% (Interest Expense 813.0k / Debt 13.9m)
Taxrate = 25.05% (14.4m / 57.3m)
NOPAT = 42.3m (EBIT 56.5m * (1 - 25.05%))
Current Ratio = 2.97 (Total Current Assets 580.6m / Total Current Liabilities 195.6m)
Debt / Equity = 0.03 (Debt 13.9m / totalStockholderEquity, last quarter 496.0m)
Debt / EBITDA = -1.51 (Net Debt -110.5m / EBITDA 73.0m)
Debt / FCF = -0.70 (Net Debt -110.5m / FCF TTM 157.9m)
Total Stockholder Equity = 496.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.94% (Net Income 39.7m / Total Assets 804.3m)
RoE = 8.00% (Net Income TTM 39.7m / Total Stockholder Equity 496.8m)
RoCE = 11.06% (EBIT 56.5m / Capital Employed (Equity 496.8m + L.T.Debt 13.9m))
RoIC = 8.52% (NOPAT 42.3m / Invested Capital 496.8m)
WACC = 8.61% (E(1.36b)/V(1.37b) * Re(8.65%) + D(13.9m)/V(1.37b) * Rd(5.87%) * (1-Tc(0.25)))
Discount Rate = 8.65% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.25%
[DCF Debug] Terminal Value 67.76% ; FCFE base≈109.8m ; Y1≈72.1m ; Y5≈33.0m
Fair Price DCF = 8.32 (DCF Value 586.0m / Shares Outstanding 70.5m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 9.53 | EPS CAGR: 121.3% | SUE: 1.65 | # QB: 1
Revenue Correlation: 74.84 | Revenue CAGR: 2.68% | SUE: 0.66 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.23 | Chg30d=-0.003 | Revisions Net=+0 | Analysts=3
EPS next Year (2026-12-31): EPS=0.98 | Chg30d=-0.057 | Revisions Net=+4 | Growth EPS=+21.9% | Growth Revenue=+5.5%
Additional Sources for HCSG Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle