(HCSG) Healthcare - Overview
Stock: Housekeeping, Laundry, Dietary, Maintenance
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 35.1% |
| Relative Tail Risk | -11.4% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.23 |
| Alpha | 52.41 |
| Character TTM | |
|---|---|
| Beta | 0.749 |
| Beta Downside | 0.322 |
| Drawdowns 3y | |
|---|---|
| Max DD | 42.54% |
| CAGR/Max DD | 0.25 |
Description: HCSG Healthcare January 19, 2026
Healthcare Services Group, Inc. (NASDAQ:HCSG) is a U.S.–based provider of outsourced management, administrative, and operational services to the housekeeping, laundry, linen, facility-maintenance, and dietary departments of long-term-care (LTC) facilities, post-acute rehabilitation centers, and hospitals. The business is organized into two segments: Housekeeping, which handles cleaning, disinfection, and linen processing, and Dietary, which manages food procurement, meal preparation, menu design, and dietitian consulting.
In FY 2023 the company reported approximately $1.3 billion of revenue, a modest year-over-year increase driven primarily by higher contract volumes in the rapidly expanding post-acute sector. Adjusted EBITDA margin hovered around 7.5 %, reflecting steady cost-control despite rising labor and material inflation. The firm’s contract renewal rate exceeded 85 %, indicating strong customer stickiness in a market where providers seek to outsource non-core services to improve margins.
Key economic drivers for HCSG include the aging U.S. population-U.S. Census data projects the 65-plus cohort to reach 22 % of the total population by 2035-fueling demand for LTC and rehabilitation services. Simultaneously, Medicare and Medicaid reimbursement reforms pressure providers to contain operating costs, creating a tailwind for third-party service vendors that can deliver efficiency gains. A persistent skilled-labor shortage in the healthcare support workforce also raises the value of outsourced solutions that can mitigate staffing volatility.
For a deeper quantitative look at HCSG’s valuation metrics and scenario analysis, you might find ValueRay’s platform useful as a next step in your research.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 39.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA 14.96 > 1.0 |
| NWC/Revenue: 21.29% < 20% (prev 22.38%; Δ -1.09% < -1%) |
| CFO/TA 0.20 > 3% & CFO 163.8m > Net Income 39.7m |
| Net Debt (-110.5m) to EBITDA (73.0m): -1.51 < 3 |
| Current Ratio: 2.97 > 1.5 & < 3 |
| Outstanding Shares: last quarter (73.5m) vs 12m ago -0.57% < -2% |
| Gross Margin: 12.49% > 18% (prev 0.14%; Δ 1235 % > 0.5%) |
| Asset Turnover: 224.6% > 50% (prev 211.2%; Δ 13.44% > 0%) |
| Interest Coverage Ratio: 20.15 > 6 (EBITDA TTM 73.0m / Interest Expense TTM 2.80m) |
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 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) |
| Altman-Z'' Score: 5.49 = AAA |
Beneish M -3.21
| DSRI: 0.76 (Receivables 329.5m/406.5m, Revenue 1.81b/1.70b) |
| GMI: 1.14 (GM 12.49% / 14.28%) |
| AQI: 0.99 (AQ_t 0.24 / AQ_t-1 0.25) |
| SGI: 1.06 (Revenue 1.81b / 1.70b) |
| TATA: -0.15 (NI 39.7m - CFO 163.8m) / TA 804.3m) |
| Beneish M-Score: -3.21 (Cap -4..+1) = AA |
What is the price of HCSG shares?
Over the past week, the price has changed by -1.41%, over one month by +8.47%, over three months by +5.26% and over the past year by +70.63%.
Is HCSG a buy, sell or hold?
- StrongBuy: 2
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the HCSG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 21.5 | 14.2% |
| Analysts Target Price | 21.5 | 14.2% |
| ValueRay Target Price | 21.4 | 13.7% |
HCSG Fundamental Data Overview February 02, 2026
P/E Forward = 18.0505
P/S = 0.7536
P/B = 2.6449
P/EG = 2.3893
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)
EV/FCF = 7.59x (Enterprise Value 1.20b / FCF TTM 157.9m)
FCF Yield = 13.17% (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 = 8.63% (E(1.36b)/V(1.38b) * Re(8.67%) + D(13.9m)/V(1.38b) * Rd(5.87%) * (1-Tc(0.25)))
Discount Rate = 8.67% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.25%
[DCF Debug] Terminal Value 67.42% ; FCFF base≈109.8m ; Y1≈72.1m ; Y5≈32.9m
Fair Price DCF = 9.80 (EV 579.7m - Net Debt -110.5m = Equity 690.2m / Shares 70.5m; r=8.63% [WACC]; 5y FCF grow -40.0% → 2.90% )
[DCF Warning] FCF declining rapidly (-40.0%), DCF may be unreliable
EPS Correlation: -1.10 | EPS CAGR: -7.30% | SUE: -0.78 | # QB: 0
Revenue Correlation: 74.84 | Revenue CAGR: 2.68% | SUE: 0.66 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.22 | Chg30d=-0.018 | Revisions Net=+0 | Analysts=3
EPS next Year (2026-12-31): EPS=0.96 | Chg30d=-0.040 | Revisions Net=-1 | Growth EPS=+11.9% | Growth Revenue=+5.3%