HCSG Stock Analysis: Healthcare | NASDAQ
Medical Care Facilities | NASDAQ, USA | Market Cap: 1.404m USD | 12M Return: 30.6% | US4219061086 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 14.1M
EPS Trend: 19.0%
Qual. Beats: 0
Rev. Trend: 97.4%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
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.
Healthcare Services Group, Inc. (HCSG) is a U.S.-based provider of management, administrative, and operating services to non-clinical departments of healthcare facilities, primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals. Founded in 1976 and headquartered in Bensalem, Pennsylvania, the company operates through two segments: Environmental Services, which covers housekeeping, laundry, linen, and facility maintenance, and Dietary, which manages food purchasing, meal preparation, and dietitian consulting. HCSG generates revenue through outsourced service contracts with long-term and post-acute care facilities, hospitals, and other healthcare operators, earning fees tied to the scope and scale of services delivered at each client site.
The company sits within the GICS Industrials sector under Diversified Support Services, a classification that groups firms offering outsourced, non-clinical operational support rather than direct patient care. HCSGs business model is contract-based, with long-tenured client relationships in a fragmented long-term care market, and its growth tends to track the outsourcing decisions of skilled nursing and senior living operators rather than overall healthcare utilization.
- Labor cost inflation pressures operating margins across both segments
- Nursing home occupancy recovery drives environmental and dietary revenue growth
- Medicaid reimbursement rate changes squeeze client facility budgets
| 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 (-183.1m) to EBITDA (150.6m): -1.22 < 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) |
| 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 |
| 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 |
As of October 08, 2026, the stock is trading at USD 20.79 with a total of 1,129,174 shares traded. Over the past week, the price has changed by +1.66%, over one month by -4.55%, over three months by -14.76% and over the past year by +30.59%.
Current recommended Stop Loss: 19.40 (which is 6.7% or 2.5 ATR below the current price).
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 | 27 | 29.9% |
P/E Trailing = 11.9591
P/E Forward = 17.3611
P/S = 0.7527
P/B = 2.8116
P/EG = 2.3893
Revenue TTM = 1.86b USD
EBIT TTM = 142.7m USD
EBITDA TTM = 150.6m USD
Long Term Debt = 11.3m USD (estimated: total debt 17.7m - short term 6.40m)
Short Term Debt = 6.40m USD (from shortTermDebt, last quarter)
Debt = 17.7m USD (from shortLongTermDebtTotal, last quarter) (leases 17.7m already included)
Net Debt = -183.1m USD (calculated: Debt 17.7m - CCE 200.9m)
Enterprise Value = 1.22b USD (1.40b + Debt 17.7m - CCE 200.9m)
Interest Coverage Ratio = 65.72 (Ebit TTM 142.7m / Interest Expense TTM 2.17m)
EV/FCF = 8.06x (Enterprise Value 1.22b / FCF TTM 151.5m)
FCF Yield = 12.41% (FCF TTM 151.5m / Enterprise Value 1.22b)
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 = 1.49 (Enterprise Value 1.22b / Total Assets 820.9m)
Interest Expense / Debt = 12.25% (Interest Expense 2.17m / Debt 17.7m)
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 = 0.03 (Debt 17.7m / totalStockholderEquity, last quarter 518.8m)
Debt / EBITDA = -1.22 (Net Debt -183.1m / EBITDA 150.6m)
Debt / FCF = -1.21 (Net Debt -183.1m / 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 = 27.38% (EBIT 142.7m / Capital Employed (Equity 509.7m + L.T.Debt 11.3m))
RoIC = 21.22% (NOPAT 115.9m / Invested Capital 545.9m)
WACC = 9.49% (E(1.40b)/V(1.42b) * Re(9.48%) + D(17.7m)/V(1.42b) * Rd(12.25%) * (1-Tc(0.19)))
Discount Rate = 9.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -87.01 | Cagr: -2.18%
[DCF] Terminal Value 74.38% ; FCFF base≈127.2m ; Y1≈145.8m ; Y5≈214.6m
[DCF] Fair Price = 41.88 (EV 2.69b - Net Debt -183.1m = Equity 2.87b / Shares 68.6m; r=9.49% [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=+0.00% | Revisions=+29% | Analysts=7
EPS current Year (2026-12-31): EPS=1.20 | Chg30d=+0.00% | Revisions=+38% | GrowthEPS=+48.4% | GrowthRev=+4.3%
EPS next Year (2027-12-31): EPS=1.23 | Chg30d=+0.00% | Revisions=+29% | GrowthEPS=+2.4% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: +44% (up=10, down=3)