HCSG Stock Analysis: Healthcare | NASDAQ

Housekeeping Management, Laundry Management, Dietary Management, Facility Maintenance

Total Rating 67

Safety 86

Buy Signal -0.07

Medical Care Facilities
Industry Rotation: -15.3

Market Cap: 1.60B
Avg Turnover: 17.8M

Risk 3d forecast

Volatility35.5%

VaR 5^th Pctl5.68%

VaR vs Median-2.63%

Reward TTM

Sharpe Ratio1.24

Rel. Str. IBD71.3

Rel. Str. Peer Group68.8

Character TTM

Beta1.007

Beta Downside0.473

Hurst Exponent0.424

Drawdowns 3y

Max DD30.30%

CAGR/Max DD0.67

CAGR/Mean DD1.84

EPS (Earnings per Share)

EPS CAGR: 12.81%
EPS Trend: 19.0%

Last SUE: 0.40
Qual. Beats: 0

Revenue

Rev. CAGR: 4.65%
Rev. Trend: 97.4%

Last SUE: -0.16
Qual. Beats: 0

Warnings

Below Avwap Earnings

Tailwinds

No distinct edge detected

Seasonality 11.6 years of data

Jan +0.8% 15

Feb -1.9% 8

Mar -1.1% 5

Apr +2.8% 28

May -3.0% 6

Jun +3.7% 45

Jul -10.2% 37

Aug -1.6% 14

Sep +0.5% 11

Oct -0.1% 2

Nov +3.3% 39

Dec -1.4% 15

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.

Description: HCSG Healthcare

Healthcare Services Group, Inc. (HCSG) is a Pennsylvania-based provider of outsourced management and operational support services to healthcare facilities across the United States. The company serves nursing homes, retirement complexes, rehabilitation centers, and hospitals, organizing its operations into two reporting segments: Environmental Services (housekeeping, laundry, linen, and facility maintenance) and Dietary (food purchasing, meal preparation, and dietitian consulting). Founded in 1976 and headquartered in Bensalem, PA, HCSG has been publicly traded since its 1990 IPO.

The companys business model centers on long-term service contracts with healthcare operators, generating revenue through recurring management fees rather than direct patient billing. This outsourcing model allows client facilities to focus on clinical care while delegating non-clinical support functions, a structure that is common across the broader Diversified Support Services industry.

HCSGs target market is shaped by structural demand for long-term and post-acute care in the United States, driven by an aging population and the increasing preference among facility operators to contract out non-core functions. The firm acquires new clients through referrals and direct solicitation rather than third-party distribution channels.

Headlines to Watch Out For

Labor wage inflation pressures environmental services operating margins
Customer concentration with major nursing home operators poses revenue risk
Post-acute care occupancy recovery drives dietary segment revenue growth

Piotroski VR-10 (Strict) 8.0

Net Income: 123.0m TTM > 0 and > 6% of Revenue
FCF/TA: 0.18 > 0.02 and ΔFCF/TA 7.12 > 1.0
NWC/Revenue: 20.40% < 20% (prev 17.97%; Δ 2.44% < -1%)
CFO/TA 0.19 > 3% & CFO 157.2m > Net Income 123.0m
Net Debt (-171.8m) to EBITDA (150.6m): -1.14 < 3
Current Ratio: 3.02 > 1.5 & < 3
Outstanding Shares: last quarter (70.5m) vs 12m ago -4.00% < -2%
Gross Margin: 17.33% > 18% (prev 10.89%; Δ 6.44% > 0.5%)
Asset Turnover: 229.8% > 50% (prev 220.9%; Δ 8.86% > 0%)
Interest Coverage Ratio: 65.72 > 6 (EBIT TTM 142.7m / Interest Expense TTM 2.17m)

Altman Z'' 7.35

A: 0.46 (Total Current Assets 568.5m - Total Current Liabilities 188.1m) / Total Assets 820.9m
B: 0.40 (Retained Earnings 332.4m / Total Assets 820.9m)
C: 0.18 (EBIT TTM 142.7m / Avg Total Assets 811.5m)
D: 1.72 (Book Value of Equity 518.8m / Total Liabilities 302.0m)
Altman-Z'' = 7.35 = AAA

Beneish M -3.43

DSRI: 0.95 (Receivables 324.1m/323.8m, Revenue 1.86b/1.77b)
GMI: 0.63 (GM 10.89% / 17.33%)
AQI: 0.90 (AQ_t 0.27 / AQ_t-1 0.30)
SGI: 1.05 (Revenue 1.86b / 1.77b)
TATA: -0.04 (NI 123.0m - CFO 157.2m) / TA 820.9m)
Beneish M = -3.43 (Cap -4..+1) = AA

What is the price of HCSG shares?

As of August 09, 2026, the stock is trading at USD 22.23 with a total of 781,163 shares traded. Over the past week, the price has changed by -4.59%, over one month by -8.86%, over three months by -0.36% and over the past year by +61.91%.

Current recommended Stop Loss: 20.40 (which is 8.2% or 2.2 ATR below the current price).

Is HCSG a buy, sell or hold?

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

What are the forecasts/targets for the HCSG price?

Analysts Target Price	26.8	20.6%

Healthcare (HCSG) - Fundamental Data Overview as of 02 August 2026

Market Cap USD = 1.60b (1.60b USD * 1.0 USD.USD)
P/E Trailing = 13.6257
P/E Forward = 26.178
P/S = 0.8576
P/B = 3.0834
P/EG = 2.3893
Revenue TTM = 1.86b USD
EBIT TTM = 142.7m USD
EBITDA TTM = 150.6m USD
Long Term Debt = 4.93m USD (estimated: total debt 11.3m - short term 6.40m)
Short Term Debt = 6.40m USD (from shortTermDebt, last quarter)
Debt = 29.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 17.7m
Net Debt = -171.8m USD (calculated: Debt 29.1m - CCE 200.9m)
Enterprise Value = 1.43b USD (1.60b + Debt 29.1m - CCE 200.9m)
Interest Coverage Ratio = 65.72 (Ebit TTM 142.7m / Interest Expense TTM 2.17m)
EV/FCF = 9.42x (Enterprise Value 1.43b / FCF TTM 151.5m)
FCF Yield = 10.61% (FCF TTM 151.5m / Enterprise Value 1.43b)
FCF Margin = 8.12% (FCF TTM 151.5m / Revenue TTM 1.86b)
Net Margin = 6.59% (Net Income TTM 123.0m / Revenue TTM 1.86b)
Gross Margin = 17.33% ((Revenue TTM 1.86b - Cost of Revenue TTM 1.54b) / Revenue TTM)
Gross Margin QoQ = 15.89% (prev 16.39%)
Tobins Q-Ratio = 1.74 (Enterprise Value 1.43b / Total Assets 820.9m)
Interest Expense / Debt = 7.47% (Interest Expense 2.17m / Debt 29.1m)
Taxrate = 18.79% (28.5m / 151.4m)
NOPAT = 115.9m (EBIT 142.7m * (1 - 18.79%))
Current Ratio = 3.02 (Total Current Assets 568.5m / Total Current Liabilities 188.1m)
Debt / Equity = 0.06 (Debt 29.1m / totalStockholderEquity, last quarter 518.8m)
Debt / EBITDA = -1.14 (Net Debt -171.8m / EBITDA 150.6m)
Debt / FCF = -1.13 (Net Debt -171.8m / FCF TTM 151.5m)
Total Stockholder Equity = 509.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 15.15% (Net Income 123.0m / Total Assets 820.9m)
RoE = 24.12% (Net Income TTM 123.0m / Total Stockholder Equity 509.7m)
RoCE = 27.72% (EBIT 142.7m / Capital Employed (Equity 509.7m + L.T.Debt 4.93m))
RoIC = 21.22% (NOPAT 115.9m / Invested Capital 545.9m)
WACC = 9.47% (E(1.60b)/V(1.63b) * Re(9.53%) + D(29.1m)/V(1.63b) * Rd(7.47%) * (1-Tc(0.19)))
Discount Rate = 9.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -87.01 | Cagr: -2.18%
[DCF] Terminal Value 74.44% ; FCFF base≈127.2m ; Y1≈145.8m ; Y5≈214.6m
[DCF] Fair Price = 41.82 (EV 2.70b - Net Debt -171.8m = Equity 2.87b / Shares 68.6m; r=9.47% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 18.95 | EPS CAGR: 12.81% | SUE: 0.40 | # QB: 0
Revenue Correlation: 97.43 | Revenue CAGR: 4.65% | SUE: -0.16 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.24 | Chg30d=+2.00% | Revisions=-50% | Analysts=6
EPS current Year (2026-12-31): EPS=1.19 | Chg30d=+10.00% | Revisions=+67% | GrowthEPS=+47.0% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=1.22 | Chg30d=+5.62% | Revisions=+67% | GrowthEPS=+2.5% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: +50% (up=12, down=3)