Healthcare Services Group Inc

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HCSG : NASDAQ : Services
$50.71 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 325100.0
08/17/17 - 4:00 PM ET

Financial Analysis


HEALTHCARE SERVICES GROUP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. HEALTHCARE SERVICES GROUP is extremely liquid. Currently, the Quick Ratio is 2.83 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 16.52% 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 FY17 Q2 FY16
Net Sales ($mil)470.88386.56
EBITDA ($mil)33.9230.63
EBIT ($mil)31.5628.68
Net Income ($mil)22.5518.76


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)77.14100.64
Total Assets ($mil)615.75522.55
Total Debt ($mil)16.180.0
Equity ($mil)376.08322.73


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin14.014.56
EBITDA Margin7.27.92
Operating Margin6.77.42
Sales Turnover2.712.87
Return on Assets13.7312.17
Return on Equity22.4819.7
Debt Q2 FY17 Q2 FY16
Current Ratio3.243.77
Debt/Capital0.040.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)73.0872.45
Div / share0.190.18
EPS0.30.26
Book value / share5.154.45
Institutional Own % n/a n/a
Avg Daily Volume314988.0320319.0

Valuation


BUY. HEALTHCARE SERVICES GROUP's P/E ratio indicates a significant premium compared to an average of 31.69 for the Commercial Services & Supplies industry and a significant premium compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 9.92 indicates a significant premium versus the S&P 500 average of 3.03 and a significant premium versus the industry average of 6.02. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. 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 44.38 Peers 31.69   HCSG 253.30 Peers 19.21

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.

 

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

HCSG is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HCSG 35.94 Peers 25.63   HCSG 2.33 Peers 1.36

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HCSG 9.92 Peers 6.02   HCSG 29.21 Peers 132.90

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 2.24 Peers 2.43   HCSG 11.28 Peers 14.20

Average. 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 valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HCSG trails its peers on the basis of sales growth

 

 

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