Overview Dividends

(HCSG) Healthcare - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US4219061086

Housekeeping, Laundry, Dietary, Facility Maintenance, Clinical Consulting

EPS (Earnings per Share)

EPS Growth (3y CAGR): 43.15%
EPS Trend (3y Corr): 0.6%

Last SUE: 1.65σ
Qual. Beats: 1

Revenue

Revenue Growth (3y CAGR): 3.36%
Revenue Trend (3y Corr): 87.7%

Last SUE: 0.66σ
Qual. Beats: 0

Risk via 10d forecast
Volatility	35.4%
Value at Risk 5%th	51.6%
Relative Tail Risk	-11.36%

Reward TTM
Sharpe Ratio	0.98
Alpha	33.89

Character TTM
Hurst Exponent	0.615
Beta	0.714
Beta Downside	0.351

Drawdowns 3y
Max DD	42.54%
Mean DD	20.25%
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.

HCSG Stock Overview

Market Cap in USD	1,260m
Sub-Industry	Diversified Support Services
IPO / Inception	1990-03-26
Return 12m vs S&P 500	34.8%
Analyst Rating	3.80 of 5

HCSG Dividends

Currently no dividends paid

HCSG Growth Ratios

Metric	Value
CAGR 3y	6.54%
CAGR/Max DD Calmar Ratio	0.15
CAGR/Mean DD Pain Ratio	0.32
Current Volume	350.1k
Average Volume	659.5k

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 (-118.2m) to EBITDA (72.2m) ratio: -1.64 <= 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 16.70%; Δ -4.20pp) >=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 19.86 (EBITDA TTM 72.2m / Interest Expense TTM 2.80m) >= 6 (WARN >= 3)

Altman Z'' 5.94

(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

(D) 1.25 = Book Value of Equity 252.5m / Total Liabilities 201.9m

Total Rating: 5.94 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 71.10

1. Piotroski 7.0pt = 2.0

2. FCF Yield 14.51% = 5.0

3. FCF Margin 8.73% = 2.18

4. Debt/Equity 0.01 = 2.50

5. Debt/Ebitda -1.64 = 2.50

6. ROIC - WACC (= -0.26)% = -0.32

7. RoE 7.59% = 0.63

8. Rev. Trend 87.68% = 6.58

9. EPS Trend 0.59% = 0.03

What is the price of HCSG shares?

As of November 19, 2025, the stock is trading at USD 17.19 with a total of 350,116 shares traded.
Over the past week, the price has changed by -3.10%, over one month by +4.50%, over three months by +12.28% and over the past year by +53.07%.

Is HCSG a buy, sell or hold?

Healthcare has received a consensus analysts rating of 3.80. Therefor, it is recommend to hold HCSG.

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	22	28%
Analysts Target Price	22	28%
ValueRay Target Price	19.3	12.4%

HCSG Fundamental Data Overview November 05, 2025

Market Cap USD = 1.26b (1.26b USD * 1.0 USD.USD)
P/E Trailing = 33.1111
P/E Forward = 16.7785
P/S = 0.6966
P/B = 2.5107
P/EG = 2.3893
Beta = 0.699
Revenue TTM = 1.81b USD
EBIT TTM = 55.7m USD
EBITDA TTM = 72.2m USD
Long Term Debt = 8.03m USD (from capitalLeaseObligations, last fiscal year)
Short Term Debt = 8.40m USD (from shortTermDebt, last fiscal year)
Debt = 6.22m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -118.2m USD (from netDebt column, last quarter)
Enterprise Value = 1.09b USD (1.26b + Debt 6.22m - CCE 177.5m)
Interest Coverage Ratio = 19.86 (Ebit TTM 55.7m / Interest Expense TTM 2.80m)
FCF Yield = 14.51% (FCF TTM 157.9m / Enterprise Value 1.09b)
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 = 1.35 (Enterprise Value 1.09b / Total Assets 804.3m)
Interest Expense / Debt = 13.08% (Interest Expense 813.0k / Debt 6.22m)
Taxrate = 25.05% (14.4m / 57.3m)
NOPAT = 41.7m (EBIT 55.7m * (1 - 25.05%))
Current Ratio = 2.97 (Total Current Assets 580.6m / Total Current Liabilities 195.6m)
Debt / Equity = 0.01 (Debt 6.22m / totalStockholderEquity, last quarter 602.4m)
Debt / EBITDA = -1.64 (Net Debt -118.2m / EBITDA 72.2m)
Debt / FCF = -0.75 (Net Debt -118.2m / FCF TTM 157.9m)
Total Stockholder Equity = 523.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.94% (Net Income 39.7m / Total Assets 804.3m)
RoE = 7.59% (Net Income TTM 39.7m / Total Stockholder Equity 523.4m)
RoCE = 10.48% (EBIT 55.7m / Capital Employed (Equity 523.4m + L.T.Debt 8.03m))
RoIC = 8.40% (NOPAT 41.7m / Invested Capital 497.1m)
WACC = 8.66% (E(1.26b)/V(1.27b) * Re(8.65%) + D(6.22m)/V(1.27b) * Rd(13.08%) * (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: 0.59 | EPS CAGR: 43.15% | SUE: 1.65 | # QB: 1
Revenue Correlation: 87.68 | Revenue CAGR: 3.36% | SUE: 0.66 | # QB: 0

Additional Sources for HCSG Stock

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