(HCSG) Healthcare - NASDAQ
Sector: Healthcare | Industry: Medical Care Facilities | Exchange: NASDAQ (USA) | Market Cap: 1.398m USD | Total Return: 40.3% in 12m
Avg Turnover: 11.3M
EPS Trend: -0.5%
Qual. Beats: 0
Rev. Trend: 94.8%
Qual. Beats: 1
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Healthcare Services Group, Inc. (HCSG) provides outsourced management and operational services to healthcare facilities across the United States, primarily targeting nursing homes, retirement complexes, and rehabilitation centers. The company operates through two primary segments: Environmental Services, which covers housekeeping and laundry logistics, and Dietary Services, which manages food procurement and clinical nutrition planning.
The business model relies on long-term service contracts that integrate HCSG staff directly into the clients daily operations, allowing healthcare providers to shift administrative burdens and labor management to a specialized third party. This sector is heavily influenced by federal reimbursement rates, as the majority of HCSG’s client base depends on Medicare and Medicaid funding to sustain facility operations.
For a deeper look at the fundamental metrics driving this company, you may want to examine the data available on ValueRay.
Since its incorporation in 1976, the company has scaled its geographic footprint to serve the post-acute care and hospital markets nationwide. By focusing on essential non-clinical functions, HCSG maintains a critical role in the maintenance of regulatory compliance and sanitation standards within high-acuity environments.
- Skilled nursing facility occupancy rates drive demand for environmental and dietary services
- Labor cost inflation and staffing availability impact core operating margins
- Client credit risk and collection cycles influence accounts receivable and cash flow
- Federal reimbursement policy changes affect facility operator budgets and contract pricing
- Expansion into acute care and hospital markets diversifies revenue beyond nursing homes
| Net Income: 67.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.19 > 0.02 and ΔFCF/TA 9.58 > 1.0 |
| NWC/Revenue: 22.02% < 20% (prev 21.62%; Δ 0.40% < -1%) |
| CFO/TA 0.20 > 3% & CFO 161.2m > Net Income 67.9m |
| Net Debt (-154.6m) to EBITDA (92.3m): -1.68 < 3 |
| Current Ratio: 3.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (71.0m) vs 12m ago -3.94% < -2% |
| Gross Margin: 13.57% > 18% (prev 13.31%; Δ 0.26% > 0.5%) |
| Asset Turnover: 226.2% > 50% (prev 211.4%; Δ 14.77% > 0%) |
| Interest Coverage Ratio: 38.37 > 6 (EBIT TTM 75.6m / Interest Expense TTM 1.97m) |
| A: 0.50 (Total Current Assets 601.2m - Total Current Liabilities 193.4m) / Total Assets 814.8m |
| B: 0.38 (Retained Earnings 309.7m / Total Assets 814.8m) |
| C: 0.09 (EBIT TTM 75.6m / Avg Total Assets 818.9m) |
| D: 1.71 (Book Value of Equity 513.8m / Total Liabilities 301.1m) |
| Altman-Z'' = 6.93 = AAA |
| DSRI: 0.80 (Receivables 328.5m/387.0m, Revenue 1.85b/1.74b) |
| GMI: 0.98 (GM 13.31% / 13.57%) |
| AQI: 0.86 (AQ_t 0.23 / AQ_t-1 0.27) |
| SGI: 1.06 (Revenue 1.85b / 1.74b) |
| TATA: -0.11 (NI 67.9m - CFO 161.2m) / TA 814.8m) |
| Beneish M = -3.26 (Cap -4..+1) = AA |
As of June 09, 2026, the stock is trading at USD 20.53 with a total of 438,142 shares traded.
Over the past week, the price has changed by +2.96%,
over one month by -10.97%,
over three months by -0.53% and
over the past year by +40.33%.
Healthcare has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold HCSG.
- StrongBuy: 2
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 26.2 | 27.6% |
P/E Trailing = 21.4421
P/E Forward = 21.4592
P/S = 0.7549
P/B = 2.7217
P/EG = 1.3592
Revenue TTM = 1.85b USD
EBIT TTM = 75.6m USD
EBITDA TTM = 92.3m USD
Long Term Debt = unknown (none)
Short Term Debt = 5.36m USD (from shortTermDebt, last fiscal year)
Debt = 24.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 14.7m
Net Debt = -154.6m USD (calculated: Debt 24.0m - CCE 178.6m)
Enterprise Value = 1.24b USD (1.40b + Debt 24.0m - CCE 178.6m)
Interest Coverage Ratio = 38.37 (Ebit TTM 75.6m / Interest Expense TTM 1.97m)
EV/FCF = 7.99x (Enterprise Value 1.24b / FCF TTM 155.7m)
FCF Yield = 12.52% (FCF TTM 155.7m / Enterprise Value 1.24b)
FCF Margin = 8.41% (FCF TTM 155.7m / Revenue TTM 1.85b)
Net Margin = 3.67% (Net Income TTM 67.9m / Revenue TTM 1.85b)
Gross Margin = 13.57% ((Revenue TTM 1.85b - Cost of Revenue TTM 1.60b) / Revenue TTM)
Gross Margin QoQ = 16.39% (prev 16.31%)
Tobins Q-Ratio = 1.53 (Enterprise Value 1.24b / Total Assets 814.8m)
Interest Expense / Debt = 8.20% (Interest Expense 1.97m / Debt 24.0m)
Taxrate = 13.53% (10.6m / 78.5m)
NOPAT = 65.4m (EBIT 75.6m * (1 - 13.53%))
Current Ratio = 3.11 (Total Current Assets 601.2m / Total Current Liabilities 193.4m)
Debt / Equity = 0.05 (Debt 24.0m / totalStockholderEquity, last quarter 513.8m)
Debt / EBITDA = -1.68 (Net Debt -154.6m / EBITDA 92.3m)
Debt / FCF = -0.99 (Net Debt -154.6m / FCF TTM 155.7m)
Total Stockholder Equity = 499.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.29% (Net Income 67.9m / Total Assets 814.8m)
RoE = 13.60% (Net Income TTM 67.9m / Total Stockholder Equity 499.3m)
RoCE = 12.16% (EBIT 75.6m / Capital Employed (Total Assets 814.8m - Current Liab 193.4m))
RoIC = 12.23% (NOPAT 65.4m / Invested Capital 534.2m)
WACC = 9.94% (E(1.40b)/V(1.42b) * Re(9.99%) + D(24.0m)/V(1.42b) * Rd(8.20%) * (1-Tc(0.14)))
Discount Rate = 9.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -55.56 | Cagr: -1.72%
[DCF] Terminal Value 73.00% ; FCFF base≈124.8m ; Y1≈143.1m ; Y5≈210.6m
[DCF] Fair Price = 38.29 (EV 2.47b - Net Debt -154.6m = Equity 2.63b / Shares 68.6m; r=9.94% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -0.47 | EPS CAGR: -0.26% | SUE: 0.51 | # QB: 0
Revenue Correlation: 94.82 | Revenue CAGR: 4.12% | SUE: 0.87 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.22 | Chg30d=-4.95% | Revisions=-14% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.24 | Chg30d=-3.69% | Revisions=-43% | Analysts=6
EPS current Year (2026-12-31): EPS=1.08 | Chg30d=+12.39% | Revisions=+60% | GrowthEPS=+33.6% | GrowthRev=+5.1%
EPS next Year (2027-12-31): EPS=1.16 | Chg30d=+5.27% | Revisions=+60% | GrowthEPS=+6.8% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: +60%