HCSG Stock Analysis: Healthcare | NASDAQ
Medical Care Facilities | NASDAQ, USA | Market Cap: 1.674m USD | 12M Return: 62.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 15.8M
EPS Trend: -0.5%
Qual. Beats: 0
Rev. Trend: 94.8%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 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 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.
- 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
| 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 (-164.0m) to EBITDA (96.4m): -1.70 < 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: 40.46 > 6 (EBIT TTM 79.7m / 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: 0.10 (EBIT TTM 79.7m / Avg Total Assets 818.9m) |
| D: 1.71 (Book Value of Equity 513.8m / Total Liabilities 301.1m) |
| Altman-Z'' = 6.97 = AAA |
| DSRI: 0.83 (Receivables 342.7m/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 = -3.23 (Cap -4..+1) = AA |
As of July 09, 2026, the stock is trading at USD 23.89 with a total of 673,300 shares traded. Over the past week, the price has changed by -2.73%, over one month by +16.37%, over three months by +24.43% and over the past year by +62.68%.
Current recommended Stop Loss: 22.40 (which is 6.2% or 2 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 | 26.2 | 9.7% |
P/E Trailing = 25.9468
P/E Forward = 26.455
P/S = 0.9039
P/B = 3.3603
P/EG = 1.3592
Revenue TTM = 1.85b USD
EBIT TTM = 79.7m USD
EBITDA TTM = 96.4m USD
Long Term Debt = 9.36m USD (estimated: total debt 14.7m - short term 5.29m)
Short Term Debt = 5.29m USD (from shortTermDebt, last quarter)
Debt = 14.7m USD (from shortLongTermDebtTotal, last quarter) (leases 14.7m already included)
Net Debt = -164.0m USD (calculated: Debt 14.7m - CCE 178.6m)
Enterprise Value = 1.51b USD (1.67b + Debt 14.7m - CCE 178.6m)
Interest Coverage Ratio = 40.46 (Ebit TTM 79.7m / Interest Expense TTM 1.97m)
EV/FCF = 9.70x (Enterprise Value 1.51b / FCF TTM 155.7m)
FCF Yield = 10.31% (FCF TTM 155.7m / Enterprise Value 1.51b)
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 = 1.85 (Enterprise Value 1.51b / Total Assets 814.8m)
Interest Expense / Debt = 13.44% (Interest Expense 1.97m / Debt 14.7m)
Taxrate = 13.53% (10.6m / 78.5m)
NOPAT = 68.9m (EBIT 79.7m * (1 - 13.53%))
Current Ratio = 3.11 (Total Current Assets 601.2m / Total Current Liabilities 193.4m)
Debt / Equity = 0.03 (Debt 14.7m / totalStockholderEquity, last quarter 513.8m)
Debt / EBITDA = -1.70 (Net Debt -164.0m / EBITDA 96.4m)
Debt / FCF = -1.05 (Net Debt -164.0m / 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 = 15.67% (EBIT 79.7m / Capital Employed (Equity 499.3m + L.T.Debt 9.36m))
RoIC = 12.90% (NOPAT 68.9m / Invested Capital 534.2m)
WACC = 9.88% (E(1.67b)/V(1.69b) * Re(9.86%) + D(14.7m)/V(1.69b) * Rd(13.44%) * (1-Tc(0.14)))
Discount Rate = 9.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -55.56 | Cagr: -1.72%
[DCF] Terminal Value 73.20% ; FCFF base≈124.8m ; Y1≈143.1m ; Y5≈210.6m
[DCF] Fair Price = 38.76 (EV 2.50b - Net Debt -164.0m = Equity 2.66b / Shares 68.6m; r=9.88% [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=-17% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.24 | Chg30d=-3.69% | Revisions=-50% | Analysts=6
EPS current Year (2026-12-31): EPS=1.08 | Chg30d=+12.39% | Revisions=+67% | GrowthEPS=+33.6% | GrowthRev=+5.1%
EPS next Year (2027-12-31): EPS=1.16 | Chg30d=+5.27% | Revisions=+67% | GrowthEPS=+6.8% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: +38% (up=13, down=5)