A Business at a Glance
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HEALTHCARE SERVICES GROUP INC
HCSG
$1.7B
Mkt Cap
$22.74
+1.38%
HEALTHCARE SERVICES GROUP INC (HCSG) has a current P/E ratio of 28.1, compared to its historical median P/E of 25.4. The stock is currently considered Fair based on its historical valuation range.
HEALTHCARE SERVICES GROUP INC (HCSG) has a 5-year average return on invested capital (ROIC) of 15.6%. This indicates strong capital allocation and a potential competitive advantage.
HEALTHCARE SERVICES GROUP INC (HCSG) has a market capitalization of $1.6B. It is classified as a small-cap stock.
HEALTHCARE SERVICES GROUP INC (HCSG) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 5.01%.
Based on historical P/E analysis, HEALTHCARE SERVICES GROUP INC (HCSG) appears fair. The current P/E of 28.1 is 11% above its historical median of 25.4. The estimated fair value CAGR (P/E method) is -13.7%.
HEALTHCARE SERVICES GROUP INC (HCSG) operates in the Services-Nursing & Personal Care Facilities industry, within the Healthcare sector.
Item I. Business. Healthcare Services Group, Inc. is a Pennsylvania corporation, incorporated on November 22, 1976. We provide management, administrative and operating expertise and services to the environmental services, laundry, linen, facility maintenance and dietary service departments of primarily healthcare facilities, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. We provide such services to approximately 2,800 facilities throughout the continental United States as of December 31, 2025. We believe we are the largest provider of housekeeping, laundry and dietary management services to the long-term care industry in the United States.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.9B | 1.8B | 1.7B | 1.7B | 1.7B | 1.6B |
| Net Income | 68M | 59M | 39M | 38M | 34M | 49M |
| EPS | $0.99 | $0.81 | $0.53 | $0.52 | $0.46 | $0.65 |
| Free Cash Flow | 156M | 139M | 24M | 38M | -13M | 31M |
| ROIC | 0.0% | 17.1% | 13.1% | 13.4% | 12.5% | 21.7% |
| Gross Margin | - | 13.0% | 13.3% | 12.8% | 11.4% | 14.0% |
| Debt/Equity | 0.00 | 0.00 | -0.05 | 0.05 | 0.06 | 0.00 |
| Dividends/Share | $0.00 | - | $0.00 | $0.00 | $0.86 | $0.84 |
| Operating Income | 0 | 70M | 59M | 61M | 47M | 67M |
| Operating Margin | 0.0% | 3.8% | 3.5% | 3.6% | 2.8% | 4.1% |
| ROE | 13.2% | 11.7% | 8.3% | 8.8% | 7.9% | 10.6% |
| Shares Outstanding | 69M | 73M | 74M | 74M | 74M | 75M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.3B | 1.4B | 1.6B | 1.9B | 2.0B | 1.8B | 1.8B | 1.6B | 1.7B | 1.7B | 1.7B | 1.8B | 1.9B |
| Gross Margin | 10.7% | 14.0% | 14.3% | 13.7% | 11.7% | 12.4% | 15.2% | 14.0% | 11.4% | 12.8% | 13.3% | 13.0% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 108M | 112M | 105M | 127M | 137M | 150M | 151M | 173M | 140M | 167M | 183M | 191M | 188M |
| EBIT | 32M | 90M | 121M | 134M | 103M | 89M | 131M | 67M | 47M | 61M | 59M | 70M | 0 |
| Op. Margin | 2.5% | 6.3% | 7.7% | 7.2% | 5.1% | 4.8% | 7.4% | 4.1% | 2.8% | 3.6% | 3.5% | 3.8% | 0.0% |
| Net Income | 22M | 58M | 77M | 88M | 84M | 65M | 99M | 49M | 34M | 38M | 39M | 59M | 68M |
| Net Margin | 1.7% | 4.0% | 5.0% | 4.7% | 4.2% | 3.5% | 5.6% | 3.0% | 2.0% | 2.3% | 2.3% | 3.2% | 3.7% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | -1.3M | -1.5M | -1.1M | -818K | -654K | -422K | -422K |
| Returns on Capital | |||||||||||||
| ROIC | 11.0% | 30.4% | 35.3% | 29.7% | 23.9% | 20.5% | 38.5% | 21.7% | 12.5% | 13.4% | 13.1% | 17.1% | 0.0% |
| ROE | 7.8% | 20.3% | 24.4% | 23.9% | 19.9% | 14.3% | 21.2% | 10.6% | 7.9% | 8.8% | 8.3% | 11.7% | 13.2% |
| ROA | 4.9% | 12.2% | 15.3% | 14.7% | 12.2% | 9.1% | 13.1% | 6.2% | 4.6% | 5.1% | 5.0% | 7.4% | 8.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 58M | 63M | 41M | 7.6M | 80M | 94M | 217M | 37M | -8.2M | 43M | 31M | 145M | 161M |
| Free Cash Flow | 52M | 58M | 36M | 2.2M | 75M | 89M | 213M | 31M | -13M | 38M | 24M | 139M | 156M |
| Owner Earnings | 47M | 54M | 30M | -7.2M | 65M | 73M | 195M | 14M | -33M | 20M | 7.1M | 116M | 133M |
| CapEx | 5.8M | 5.0M | 5.4M | 5.4M | 4.9M | 4.4M | 4.3M | 5.7M | 5.2M | 5.4M | 6.3M | 5.8M | 5.5M |
| Maint. CapEx | 7.3M | 7.7M | 7.5M | 8.9M | 9.3M | 14M | 14M | 15M | 15M | 14M | 15M | 17M | 17M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 7.3M | 7.7M | 7.5M | 8.9M | 9.3M | 14M | 14M | 15M | 15M | 14M | 15M | 17M | 17M |
| CapEx/OCF | 10.0% | 7.9% | 13.1% | 70.7% | 6.2% | 4.7% | 2.0% | 15.3% | N/A | 12.4% | 20.6% | 4.0% | 3.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 49M | 51M | 53M | 55M | 57M | 59M | 61M | 62M | 63M | 0 | 0 | 0 | 0 |
| Dividend Yield | 3.1% | 2.6% | 2.3% | 1.9% | 2.1% | 3.0% | 3.7% | 3.4% | 5.6% | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22M | 0 | 11M | 5.0M | 62M | 79M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.7% | N/A | 1.5% | 0.6% | 4.3% | 5.0% |
| Stock-Based Comp | 3.1M | 1.7M | 4.3M | 6.0M | 5.9M | 6.9M | 7.9M | 8.8M | 9.2M | 9.0M | 9.2M | 12M | 11M |
| Debt Repayment | 0 | 0 | 0 | 35M | 5.4M | 20M | 10M | 0 | 25M | 0 | 25M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -87M | -103M | -92M | -47M | -72M | -138M | -274M | -185M | -96M | -122M | -132M | -168M | -179M |
| Cash & Equiv. | 75M | 33M | 24M | 9.6M | 26M | 27M | 139M | 71M | 26M | 54M | 57M | 125M | 179M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.00 | 0.00 | 0.00 | 0.09 | 0.07 | -0.04 | -0.02 | 0.00 | 0.06 | 0.05 | -0.05 | 0.00 | 0.00 |
| Interest Coverage | 204.3 | 348.9 | 210.7 | 98.6 | 33.3 | 25.6 | 95.0 | 48.3 | 16.8 | 7.8 | 9.2 | 41.4 | 41.4 |
| Equity | 276M | 296M | 339M | 400M | 441M | 460M | 470M | 445M | 418M | 457M | 500M | 510M | 514M |
| Total Assets | 470M | 481M | 528M | 676M | 693M | 723M | 785M | 780M | 721M | 791M | 803M | 794M | 815M |
| Total Liabilities | 194M | 184M | 190M | 276M | 252M | 262M | 315M | 335M | 303M | 334M | 303M | 284M | 4.5M |
| Intangibles | 20M | 17M | 14M | 31M | 27M | 22M | 18M | 21M | 16M | 12M | 9.4M | 7.0M | 6.3M |
| Retained Earnings | 100M | 107M | 131M | 164M | 190M | 195M | 201M | 184M | 147M | 185M | 225M | 284M | 310M |
| Working Capital | 217M | 269M | 314M | 343M | 345M | 367M | 410M | 355M | 320M | 355M | 364M | 406M | 408M |
| Current Assets | 335M | 365M | 415M | 527M | 508M | 516M | 572M | 546M | 509M | 572M | 557M | 576M | 601M |
| Current Liabilities | 118M | 96M | 101M | 184M | 163M | 149M | 162M | 191M | 189M | 217M | 193M | 170M | 193M |
| Per Share Data | |||||||||||||
| EPS | 0.31 | 0.80 | 1.05 | 1.19 | 1.12 | 0.87 | 1.32 | 0.65 | 0.46 | 0.52 | 0.53 | 0.81 | 0.99 |
| Owner EPS | 0.67 | 0.74 | 0.40 | -0.10 | 0.87 | 0.98 | 2.61 | 0.18 | -0.44 | 0.27 | 0.09 | 1.59 | 1.94 |
| Book Value | 3.91 | 4.09 | 4.60 | 5.39 | 5.91 | 6.20 | 6.29 | 5.96 | 5.62 | 6.19 | 6.71 | 7.00 | 7.45 |
| Cash Flow/Share | 0.82 | 0.87 | 0.56 | 0.10 | 1.07 | 1.26 | 2.91 | 0.50 | -0.11 | 0.59 | 0.41 | 1.99 | 1.23 |
| Dividends/Share | 0.70 | 0.72 | 0.74 | 0.76 | 0.78 | 0.80 | 0.82 | 0.84 | 0.86 | 0.00 | 0.00 | N/A | 0.00 |
| Shares Out. | 70.5M | 72.5M | 73.7M | 74.1M | 74.6M | 74.2M | 74.8M | 74.7M | 74.4M | 73.8M | 74.5M | 72.9M | 68.9M |
| Valuation | |||||||||||||
| P/E Ratio | 81.8 | 36.6 | 30.8 | 37.6 | 30.3 | 24.7 | 19.5 | 27.0 | 26.1 | 19.9 | 21.7 | 24.2 | 23.0 |
| P/FCF | 34.4 | 36.4 | 66.2 | N/A | 33.7 | 17.9 | 9.0 | 39.1 | N/A | 20.1 | 35.1 | 10.3 | 10.1 |
| EV/EBIT | N/A | N/A | 18.9 | 24.3 | 23.9 | 16.8 | N/A | 16.6 | 16.8 | 10.6 | N/A | N/A | N/A |
| Price/Book | 6.5 | 7.2 | 7.0 | 8.3 | 5.7 | 3.5 | 4.0 | 2.7 | 2.1 | 1.7 | 1.7 | 2.8 | 3.1 |
| Price/Sales | 1.2 | 1.4 | 1.5 | 1.6 | 1.4 | 1.1 | 0.9 | 1.1 | 0.7 | 0.6 | 0.5 | 0.6 | 0.8 |
| FCF Yield | 2.9% | 2.7% | 1.5% | 0.1% | 3.0% | 5.6% | 11.1% | 2.5% | -1.5% | 5.0% | 2.9% | 9.7% | 9.9% |
| Market Cap | 1.8B | 2.1B | 2.4B | 3.3B | 2.5B | 1.6B | 1.9B | 1.2B | 893M | 766M | 858M | 1.4B | 1.6B |
| Avg. Price | 22.51 | 26.98 | 30.97 | 39.97 | 36.73 | 26.38 | 21.70 | 24.87 | 15.16 | 12.51 | 11.13 | 14.25 | 22.74 |
| Year-End Price | 25.36 | 29.28 | 32.30 | 44.69 | 33.93 | 21.49 | 25.70 | 16.44 | 12.00 | 10.37 | 11.52 | 19.63 | 22.74 |
HEALTHCARE SERVICES GROUP INC passes 3 of 9 quality checks, indicating weak fundamentals.
HEALTHCARE SERVICES GROUP INC trades at 28.1x trailing earnings, compared to its 15-year median P/E of 25.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 11.5x vs a median of 26.9x. The company's 5-year average ROIC is 15.6% with a gross margin of 12.9%. Total shareholder yield (buybacks) is 5.0%. At current prices, the estimated annualized return to fair value is -19.2%.
HEALTHCARE SERVICES GROUP INC (HCSG) reported annual revenue of $1.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
HEALTHCARE SERVICES GROUP INC (HCSG) has a net profit margin of 3.2%. This is a modest margin.
HEALTHCARE SERVICES GROUP INC (HCSG) generated $139 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HEALTHCARE SERVICES GROUP INC (HCSG) has a debt-to-equity ratio of 0.00. This indicates a conservatively financed balance sheet.
HEALTHCARE SERVICES GROUP INC (HCSG) reported earnings per share (EPS) of $0.81 in its most recent fiscal year.
HEALTHCARE SERVICES GROUP INC (HCSG) has a return on equity (ROE) of 11.7%. This indicates moderate shareholder returns.
HEALTHCARE SERVICES GROUP INC (HCSG) has a 5-year average gross margin of 12.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for HEALTHCARE SERVICES GROUP INC (HCSG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HEALTHCARE SERVICES GROUP INC (HCSG) has a book value per share of $7.00, based on its most recent annual SEC filing.