Healthcare Services Group Inc.

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HCSG : NASDAQ : Health Services
$47.9 -0.19 | -0.4%
Today's Range: 47.56 - 48.57
Avg. Daily Volume: 802900.0
02/21/18 - 10:53 AM ET

Financial Analysis


HEALTHCARE SERVICES GROUP's gross profit margin for the fourth quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. HEALTHCARE SERVICES GROUP is extremely liquid. Currently, the Quick Ratio is 2.51 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 18.03% 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 FY17 Q4 FY16
Net Sales ($mil)499.41398.57
EBITDA ($mil)0.032.31
EBIT ($mil)33.1330.44
Net Income ($mil)20.1920.3


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)82.7891.58
Total Assets ($mil)676.0528.45
Total Debt ($mil)0.00.0
Equity ($mil)399.95338.84


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin13.3614.94
EBITDA Margin0.08.1
Operating Margin6.637.64
Sales Turnover2.762.96
Return on Assets13.0514.64
Return on Equity22.0522.84
Debt Q4 FY17 Q4 FY16
Current Ratio2.864.11
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)73.2772.6
Div / share0.190.19
EPS0.270.28
Book value / share5.464.67
Institutional Own % n/a n/a
Avg Daily Volume818957.0407370.0

Valuation


BUY. HEALTHCARE SERVICES GROUP's P/E ratio indicates a discount compared to an average of 44.21 for the Commercial Services & Supplies industry and a significant premium compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 9.01 indicates a significant premium versus the S&P 500 average of 3.26 and a significant premium versus the industry average of 5.43. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, HEALTHCARE SERVICES GROUP seems to be trading at a discount 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 41.67 Peers 44.21   HCSG NA Peers 19.68

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

HCSG is trading at a valuation on par with 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 26.72 Peers 27.04   HCSG 0.72 Peers 0.89

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HCSG 9.01 Peers 5.43   HCSG 10.28 Peers 80.58

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HCSG 1.93 Peers 2.78   HCSG 19.42 Peers 11.44

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 significant 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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