Healthcare Services Group Inc

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HCSG : NASDAQ : Services
$38.81 | %
Today's Range: 38.74 - 39.16
Avg. Daily Volume: 341,700
07/29/16 - 4:00 PM ET

Financial Analysis


HEALTHCARE SERVICES GROUP's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. HEALTHCARE SERVICES GROUP is extremely liquid. Currently, the Quick Ratio is 3.27 which clearly shows the ability to cover any short-term cash needs. HCSG managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.95% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)386.56355.36
EBITDA ($mil)0.027.94
EBIT ($mil)28.6826.02
Net Income ($mil)18.7616.29


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)100.6497.7
Total Assets ($mil)522.55486.73
Total Debt ($mil)0.00.0
Equity ($mil)322.73290.88


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin14.0614.93
EBITDA Margin0.07.86
Operating Margin7.427.32
Sales Turnover2.872.82
Return on Assets12.175.15
Return on Equity19.78.62
Debt Q2 FY16 Q2 FY15
Current Ratio3.773.09
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)72.3471.53
Div / share0.180.18
EPS0.260.23
Book value / share4.464.07
Institutional Own % n/a n/a
Avg Daily Volume324711.0307292.0

Valuation


BUY. HEALTHCARE SERVICES GROUP's P/E ratio indicates a significant premium compared to an average of 32.51 for the Commercial Services & Supplies industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 8.54 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 5.05. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. After reviewing these and other key valuation criteria, HEALTHCARE SERVICES GROUP proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HCSG 42.81 Peers 32.51   HCSG NA Peers 16.57

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

HCSG is trading at a significant premium to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HCSG 30.73 Peers 25.92   HCSG 1.32 Peers 8.41

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

HCSG is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HCSG trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HCSG 8.54 Peers 5.05   HCSG 147.22 Peers -23.37

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HCSG is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

HCSG is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HCSG 1.84 Peers 2.24   HCSG 9.12 Peers 2.84

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HCSG is trading at a discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

HCSG has a sales growth rate that significantly exceeds its peers.

 

 

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