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Healthcare Services Group Inc
NASDAQ:HCSG

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Healthcare Services Group Inc Logo
Healthcare Services Group Inc
NASDAQ:HCSG
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Price: 12.48 USD -0.4% Market Closed
Updated: Mar 29, 2024

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%.

Key Points:
HCSG Intrinsic Value
Base Case
16.13 USD
Undervaluation 23%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Healthcare Services Group Inc

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Fundamental Analysis

Focus on Organic Growth and Financial Stability
2023-Q4 Earnings Call

Focus on Organic Growth and Financial Stability

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.

Financials

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
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Table
What is Free Cash Flow?
Fundamental Scores

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.

Positive Free Cash Flow
Positive Gross Profit
Positive Revenue Growth Forecast
Positive 3-Year Average ROE
46/100
Profitability
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.

High Altman Z-Score
Negative Net Debt
Low D/E
Short-Term Solvency
71/100
Solvency
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

Wall Street analysts forecast HCSG stock price to rise over the next 12 months.

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.

Lowest
Price Target
13.13 USD
5% Upside
Average
Price Target
14.79 USD
19% Upside
Highest
Price Target
17.85 USD
43% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

HCSG Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

HCSG Price
Healthcare Services Group Inc

1M 1M
-2%
6M 6M
+20%
1Y 1Y
-8%
3Y 3Y
-51%
5Y 5Y
-56%
10Y 10Y
-45%
Annual Price Range
12.48
52w Low
8.97
52w High
15.61
Price Metrics
Average Annual Return -16.11%
Standard Deviation of Annual Returns 25.51%
Max Drawdown -71%
Shares Statistics
Market Capitalization 915.3m USD
Shares Outstanding 73 583 104
Percentage of Shares Shorted 5.69%

HCSG Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Healthcare Services Group Inc Logo
Healthcare Services Group Inc

Country

United States of America

Industry

Commercial Services & Supplies

Market Cap

915.3m USD

Dividend Yield

0%

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

PENNSYLVANIA
Bensalem
3220 Tillman Dr Ste 300
+12159381661.0
https://www.hcsgcorp.com/

IPO

1983-11-23

Employees

39 200

Officers

President, CEO & Director
Mr. Theodore Wahl CPA
Executive VP & COO
Mr. Andrew W. Kush AAI
VP, Controller & Principal Accounting Officer
Mr. Andrew M. Brophy CPA
Executive VP & Chief Administrative Officer
Mr. John Christopher Shea CPA, M.B.A.
EVP & Chief Revenue Officer
Mr. Patrick J. Orr Esq.
Executive VP, Chief Compliance Officer, General Counsel & Secretary
Mr. Jason J. Bundick Esq.
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Chief Communications Officer
Mr. Matthew J. McKee MBA
Executive Vice President
Mr. Bryan D. McCartney
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See Also

Discover More
What is the Intrinsic Value of one HCSG stock?

The intrinsic value of one HCSG stock under the Base Case scenario is 16.13 USD.

Is HCSG stock undervalued or overvalued?

Compared to the current market price of 12.48 USD, Healthcare Services Group Inc is Undervalued by 23%.