Healthcare Services Group Inc
NASDAQ:HCSG
Intrinsic Value
Healthcare Services Group, Inc. engages in the provision of keeping, laundry, and dietary services to long-term care and related health care facilities. [ Read More ]
The intrinsic value of one HCSG stock under the Base Case scenario is 16.13 USD. Compared to the current market price of 12.48 USD, Healthcare Services Group Inc is Undervalued by 23%.
Valuation Backtest
Healthcare Services Group Inc
Run backtest to discover the historical profit from buying and selling HCSG stocks based on their intrinsic value.
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Fundamental Analysis
Focus on Organic Growth and Financial Stability
2023-Q4 Earnings Call
The company's financial highlights include aligning with revenue expectations of $420-430 million, net income of $22.6 million, EPS of $0.31, and an increase in adjusted EBITDA by 14.2% to $26.5 million. They manage to keep adjusted costs of services within the targeted 86% and SG&A expenses at 9.9%, aiming for 8.5%-9.5%. For investor interest, the strategy revolves around organic growth driven by cross-selling dining services and cultivating new environmental services alongside the education sector expansion. Two client restructurings were fully resolved this quarter, and capital is allocated for organic growth, with opportunistic buybacks as over 1 million shares were repurchased in 2023.
Balance Sheet Decomposition
Healthcare Services Group Inc
Current Assets | 571.7m |
Cash & Short-Term Investments | 147.5m |
Receivables | 383.5m |
Other Current Assets | 40.7m |
Non-Current Assets | 219m |
PP&E | 28.8m |
Intangibles | 87.7m |
Other Non-Current Assets | 102.5m |
Current Liabilities | 216.9m |
Accounts Payable | 83.2m |
Accrued Liabilities | 100m |
Short-Term Debt | 25m |
Other Current Liabilities | 8.7m |
Non-Current Liabilities | 117.1m |
Other Non-Current Liabilities | 117.1m |
Earnings Waterfall
Healthcare Services Group Inc
Revenue
|
1.7B
USD
|
Cost of Revenue
|
-1.5B
USD
|
Gross Profit
|
213.6m
USD
|
Operating Expenses
|
-173.4m
USD
|
Operating Income
|
40.3m
USD
|
Other Expenses
|
-1.9m
USD
|
Net Income
|
38.4m
USD
|
Free Cash Flow Analysis
Healthcare Services Group Inc
What is Free Cash Flow?
HCSG Profitability Score
Profitability Due Diligence
Healthcare Services Group Inc's profitability score is 46/100. The higher the profitability score, the more profitable the company is.
Score
Healthcare Services Group Inc's profitability score is 46/100. The higher the profitability score, the more profitable the company is.
HCSG Solvency Score
Solvency Due Diligence
Healthcare Services Group Inc's solvency score is 71/100. The higher the solvency score, the more solvent the company is.
Score
Healthcare Services Group Inc's solvency score is 71/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
HCSG Price Targets Summary
Healthcare Services Group Inc
According to Wall Street analysts, the average 1-year price target for HCSG is 14.79 USD with a low forecast of 13.13 USD and a high forecast of 17.85 USD.
Ownership
HCSG Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
HCSG Price
Healthcare Services Group Inc
Average Annual Return | -16.11% |
Standard Deviation of Annual Returns | 25.51% |
Max Drawdown | -71% |
Market Capitalization | 915.3m USD |
Shares Outstanding | 73 583 104 |
Percentage of Shares Shorted | 5.69% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Healthcare Services Group, Inc. engages in the provision of keeping, laundry, and dietary services to long-term care and related health care facilities. The company is headquartered in Bensalem, Pennsylvania and currently employs 39,200 full-time employees. The firm operates through two segments: housekeeping, laundry, linen and other services (Housekeeping), and dietary department services (Dietary). Its Housekeeping service involves the management of a customers’ housekeeping department, which is responsible for the cleaning, disinfecting and sanitizing resident rooms and common areas of a customers’ facilities. The firm's Dietary segment consist of managing the customers’ dietary department, which is responsible for food purchasing, meal preparation and providing professional dietitian services, including the development of menus that meet the dietary needs of residents.
Contact
IPO
Employees
Officers
The intrinsic value of one HCSG stock under the Base Case scenario is 16.13 USD.
Compared to the current market price of 12.48 USD, Healthcare Services Group Inc is Undervalued by 23%.