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Healthcare Services Group (HCSG) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Healthcare Services Group
NasdaqGS•Healthcare•Medical Care Facilities
$21.98+0.14(0.01%)Pre-market
Market Cap
$1.51B
P/E
12.3x
P/S
0.8x
P/B
2.9x

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. The company operates in two segments, Environmental Services and Dietary. Its Environmental Services segment engages in cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment is involved in the management of the customers' dietary departments, which focus on food purchasing, meal preparation, and professional dietitian services, such as the development of menus that meet the dietary needs of residents; and the provision of on-site management and clinical consulting services. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is headquartered in Bensalem, Pennsylvania.

B

How this company scores

GoodMetricSide Score: 79/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability18/25
Growth21/25
Balance Sheet & Red Flags15/25
Cash & Earnings Quality25/25
Strengths
Rising free cash flowHigh ROERising earningsInterest easily covered

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 12.3x5y range 12.3x – 101.7x
P/E 12.3x · below its 20-quarter median

Currently below its 20-quarter median.

P/S · 0.8x5y range 0.4x – 0.8x
P/S 0.8x · above its 20-quarter median

Currently above its 20-quarter median.

P/B · 2.9x5y range 1.4x – 4.0x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume
Market Cap $1.51B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$1.86B
7Q
Q. Revenue
$470.81M
3%
TTM EBITDA
$152.04M
4Q
TTM Op. Income
$127.78M
4Q
Q. Op. Income
$22.21M
148%
TTM Net Income
$122.95M
4Q
Q. Net Income
$22.70M
3Q
EPS
$0.33
3Q
Shares Out.
$68.76M
5Q
$1.86B in TTM revenue grew 5.2% YoY, reaching $470.81M last quarter. TTM EBITDA of $152.04M and TTM operating income of $127.78M show growth is flowing through to the bottom line. TTM net income of $122.95M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
15.9%
2362%
EBITDA Margin
5.5%
3Q
Op. Margin
4.7%
147%
Net Margin
4.8%
3Q
Op. margin of 4.7% is up 14.8% YoY — cost efficiency is improving. Net margin at 4.8% and gross margin of 15.9% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 147% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
12.3x
4Q
P/S Ratio
0.8x
31%
P/B Ratio
2.9x
26%
At 12.3x P/E, the stock trades below typical market levels. P/S of 0.8x and P/B of 2.9x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 4 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$820.86M
2Q
Cash
$123.41M
49%
Long-Term Debt
N/A
Book Value
$518.84M
4Q
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$21.87M
24%
TTM Free Cash Flow
$148.54M
63%
FCF Margin
8.0%
55%
FCF / Net Income
1.2
4Q
TTM FCF of $148.54M on $21.87M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 63% — a weakening trend.

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· above its 20-quarter median

Currently above its 20-quarter median.