Healthcare Services Group Inc

Health Care
Hospital/Nursing Management
www.hcsgcorp.com

Earnings Score
Moat Score

Market Cap $910.27M
PE 18
Debt $NaN
Cash $28.14M
EV $NaN
FCF $37.70M

Earnings

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Sales & Net Margins

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Earnings	$50.15M
EBIT	$69.18M
ROE	10%
ROA	9%
FCF	$37.70M
Equity	$488.75M
Growth Stability	50%
PE	18.15
PEG	-0.9
PB	1.86
P/FCF	24.14
P/S	0.53
Price/Cash	0.03
Net Margins	2%
Gross Margins	14%
Op. Margins	4%
Earnings CAGR	-10%
Sales Growth YoY	4%
Sales Growth QoQ	0%
Sales CAGR	0%
FCF CAGR	-0%
Equity CAGR	5%
Earnings Stability	0.4
Earnings Growth YoY	-355%

Earnings Growth QoQ	-885%
Earnings CAGR 5Y	-20%
Sales CAGR 5Y	-2%
FCF CAGR 5Y	-25%
Equity CAGR 5Y	-0%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	36%
Equity CAGR 3Y	3%
Market Cap	$910.27M
Revenue	$1.70B
Assets	$805.84M
Cash	$28.14M
Shares Outstanding	73.29M
Earnings Score	3%
Moat Score	80%
Working Capital	380.91M
Current Ratio	2.93
Gross Profit	$242.94M
Shares Growth 3y	-0%
Equity Growth QoQ	4%
Equity Growth YoY	11%

Assets & ROA

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Stockholders Equity & ROE

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Healthcare Services Group Inc is a provider of housekeeping and facility-management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, and bed linen and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.

SEC Filings

Direct access to Healthcare Services Group Inc (HCSG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Healthcare Services Group Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Healthcare Services Group Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -10%

Stability 40%

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Healthcare Services Group Inc Discounted Cash Flow

Fully customizable DCF calculator online for Healthcare Services Group Inc.

Years

Calculation mode

= $370M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$38M	$38M	$37M	$37M	$37M	$37M	$37M	$37M	$37M	$37M	$37M	$366M
DCF		$34M	$31M	$28M	$25M	$23M	$21M	$19M	$17M	$16M	$14M	$141M
Value	$370M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	4%	5%	5%	4%	4%	6%	3%	2%	2%	2%
ROA	-	-	-	-	15%	12%	16%	8%	6%	7%	9%
ROE	-	20%	23%	22%	19%	14%	21%	10%	8%	8%	10%

Bad Net Margins (2.16%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	78%	100%	56%	50%	64%	50%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (50%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	11%	9%	19%	8%	-8%	-4%	-7%	3%	-1%	-2%
Earnings YoY growth	-	166%	33%	14%	-5%	-23%	53%	-54%	-24%	11%	-20%
Equity YoY growth	-	7%	14%	18%	10%	4%	4%	-6%	-6%	7%	-0%
FCF YoY growth	-	12%	-38%	-94%	3K%	19%	139%	-85%	-143%	-385%	-25%