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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
$25.57-0.19(-0.01%)After hours
Market Cap
$1.75B
P/E
16.7x
P/S
0.9x
P/B
3.3x

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 also offers provides hospitality and support services. The company serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. Healthcare Services Group, Inc. was incorporated in 1976 and is headquartered in Bensalem, Pennsylvania.

B

How this company scores

GoodMetricSide Score: 71/100

Strongest: Profitability (21/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability21/25
Growth19/25
Balance Sheet & Red Flags15/25
Cash & Earnings Quality16/25
Strengths
High ROERising earningsInterest easily coveredCash-backed earnings

Valuation vs. 5-year range

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

P/E · 16.7x5y range 13.7x – 101.7x
P/E 16.7x · below its 20-quarter median

Currently below its 20-quarter median.

P/S · 0.9x5y range 0.4x – 0.9x
P/S 0.9x · above its 20-quarter median

Currently above its 20-quarter median.

P/B · 3.3x5y range 1.4x – 3.3x

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.

Price & Volume
Market Cap $1.75B

Metrics at a Glance

as of September 2026

Revenue & Profit

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

TTM Revenue
$1.88B
7Q
Q. Revenue
$479.60M
2Q
TTM EBITDA
$138.14M
129%
TTM Op. Income
$113.86M
212%
Q. Op. Income
$31.94M
30%
TTM Net Income
$104.88M
164%
Q. Net Income
$24.88M
42%
EPS
$0.37
37%
Shares Out.
$68.00M
6Q
$1.88B in TTM revenue grew 4.0% YoY, reaching $479.60M last quarter. TTM EBITDA of $138.14M and TTM operating income of $113.86M show growth is flowing through to the bottom line. TTM net income of $104.88M 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
16.8%
19%
EBITDA Margin
7.5%
30%
Op. Margin
6.7%
33%
Net Margin
5.2%
44%
Op. margin of 6.7% is down 3.2% YoY — costs are rising relative to revenue. Net margin at 5.2% and gross margin of 16.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 33% — an improving trend.

Price Ratios

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

P/E Ratio
16.7x
44%
P/S Ratio
0.9x
2Q
P/B Ratio
3.3x
2Q
At 16.7x P/E, the stock trades within typical market levels. P/S of 0.9x and P/B of 3.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 44% — a weakening trend.

Assets & Liabilities

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

Total Assets
$850.40M
3Q
Cash
$134.60M
8%
Long-Term Debt
N/A
Book Value
$531.45M
5Q
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
$30.17M
58%
TTM Free Cash Flow
$106.68M
2Q
FCF Margin
5.7%
2Q
FCF / Net Income
1.0
5Q
TTM FCF of $106.68M on $30.17M in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.

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· above its 20-quarter median

Currently above its 20-quarter median.