Healthcare Services Group Inc

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HCSG : NASDAQ : Services
$41.96 up 0.41 | 0.99%
Today's Range: 41.49 - 42.0
Avg. Daily Volume: 305300.0
02/21/17 - 3:59 PM ET

Financial Analysis

HEALTHCARE SERVICES GROUP's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. HEALTHCARE SERVICES GROUP is extremely liquid. Currently, the Quick Ratio is 3.60 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 14.29% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)398.57366.08
EBITDA ($mil)0.012.4
EBIT ($mil)30.4410.42
Net Income ($mil)20.39.13

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)91.58102.69
Total Assets ($mil)528.45480.95
Total Debt ($mil)0.00.0
Equity ($mil)338.84296.46

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin14.4713.32
EBITDA Margin0.03.38
Operating Margin7.642.84
Sales Turnover2.962.99
Return on Assets14.6412.06
Return on Equity22.8419.57
Debt Q4 FY16 Q4 FY15
Current Ratio4.113.81
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)72.5172.03
Div / share0.190.18
Book value / share4.674.12
Institutional Own % n/a n/a
Avg Daily Volume306107.0481800.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 33.15 for the Commercial Services & Supplies industry and a significant premium compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 8.90 indicates a significant premium versus the S&P 500 average of 2.94 and a significant premium versus the industry average of 4.69. The price-to-sales ratio is below the S&P 500 average and is well 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HCSG 38.88 Peers 33.15   HCSG NA Peers 14.68

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

HCSG is trading at a 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
HCSG 31.04 Peers 37.78   HCSG 0.80 Peers 1.48

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

HCSG is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HCSG 8.90 Peers 4.69   HCSG 30.48 Peers 69.59

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.


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

However, HCSG is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HCSG 1.93 Peers 2.46   HCSG 8.75 Peers 7.95

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 exceeds its peers.



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