Healthcare Services Group, Inc. (HCSG) 10-Year Financial Performance & Capital Metrics

HCSG • • Industrial / General

HealthcareHealthcare FacilitiesHealthcare Staffing & Workforce SolutionsFacility Support Services

AboutHealthcare 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. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the client's facility, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at a client's facility. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents. This segment also offers on-site management and clinical consulting services to facilities. As of December 31, 2021, the company provided its services to approximately 3,000 facilities. Healthcare Services Group, Inc. was incorporated in 1976 and is based in Bensalem, Pennsylvania.Show more

Revenue $1.72B +2.7%
EBITDA $68M -1.7%
Net Income $39M +2.8%
EPS (Diluted) 0.53 +1.9%
Gross Margin 13.29% +3.5%
EBITDA Margin 3.96% -4.2%
Operating Margin 3.1% -5.1%
Net Margin 2.3% +0.2%
ROE 8.25% -5.1%
ROIC 9.11% -2.3%
Debt/Equity 0.03 -65.6%
Interest Coverage 8.27 +18.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong Piotroski F-Score: 7/9
✓20 consecutive years of dividend growth
✓Trading near 52-week high
✓Efficient asset utilization: 2.1x turnover

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y2.87%

5Y-1.4%

3Y1.47%

TTM6.26%

Profit (Net Income) CAGR

10Y6.09%

5Y-9.38%

3Y-6.66%

TTM-20.77%

EPS CAGR

10Y5.51%

5Y-9.44%

3Y-4.58%

TTM-21.26%

ROCE

10Y Avg16.79%

5Y Avg9.17%

3Y Avg8.74%

Latest8.81%

Peer Comparison

Facility Support Services

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
HCSGHealthcare Services Group, Inc.	1.36B	19.32	36.45	2.65%	2.2%	8.01%	1.8%	0.03

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	1.44B	1.56B	1.87B	2.01B	1.84B	1.76B	1.64B	1.69B	1.67B	1.72B
Revenue Growth %	0.11%	0.09%	0.19%	0.08%	-0.08%	-0.04%	-0.07%	0.03%	-0.01%	0.03%
Cost of Goods Sold+	1.24B	1.34B	1.61B	1.77B	1.61B	1.49B	1.41B	1.5B	1.46B	1.49B
COGS % of Revenue	0.86%	0.86%	0.86%	0.88%	0.88%	0.85%	0.86%	0.89%	0.87%	0.87%
Gross Profit+	200.74M	223.17M	253.62M	236.84M	227.9M	267.99M	230.57M	193.31M	214.75M	228.09M
Gross Margin %	0.14%	0.14%	0.14%	0.12%	0.12%	0.15%	0.14%	0.11%	0.13%	0.13%
Gross Profit Growth %	0.46%	0.11%	0.14%	-0.07%	-0.04%	0.18%	-0.14%	-0.16%	0.11%	0.06%
Operating Expenses+	111.69M	105.42M	126.73M	136.6M	150.02M	267.99M	166.43M	149.52M	160.09M	174.82M
OpEx % of Revenue	0.08%	0.07%	0.07%	0.07%	0.08%	0.15%	0.1%	0.09%	0.1%	0.1%
Selling, General & Admin	111.69M	105.42M	126.73M	136.6M	150.02M	141.58M	166.43M	149.52M	160.09M	174.82M
SG&A % of Revenue	0.08%	0.07%	0.07%	0.07%	0.08%	0.08%	0.1%	0.09%	0.1%	0.1%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-62K	0	0	0	0	126.41M	0	0	0	0
Operating Income+	89.05M	117.75M	126.89M	100.24M	77.88M	0	64.13M	43.79M	54.66M	53.27M
Operating Margin %	0.06%	0.08%	0.07%	0.05%	0.04%	-	0.04%	0.03%	0.03%	0.03%
Operating Income Growth %	1.96%	0.32%	0.08%	-0.21%	-0.22%	-1%	-	-0.32%	0.25%	-0.03%
EBITDA+	96.71M	125.25M	135.78M	109.51M	91.82M	144.83M	78.8M	59.1M	69M	67.86M
EBITDA Margin %	0.07%	0.08%	0.07%	0.05%	0.05%	0.08%	0.05%	0.03%	0.04%	0.04%
EBITDA Growth %	1.59%	0.3%	0.08%	-0.19%	-0.16%	0.58%	-0.46%	-0.25%	0.17%	-0.02%
D&A (Non-Cash Add-back)	7.66M	7.5M	8.89M	9.27M	13.94M	14.27M	14.67M	15.32M	14.34M	14.59M
EBIT	88.99M	119.25M	134.33M	103M	88.56M	130.56M	66.9M	47.54M	60.91M	59.38M
Net Interest Income+	0	0	-1.36M	-3.09M	-3.46M	-1.37M	-1.39M	-2.99M	-7.86M	-6.44M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	0	0	1.36M	3.09M	3.46M	1.37M	1.39M	2.99M	7.86M	6.44M
Other Income/Expense	712K	2.63M	6.08M	2.07M	7.22M	129.19M	1.38M	764K	-1.6M	-330K
Pretax Income+	89.76M	120.39M	132.97M	99.91M	85.1M	129.19M	65.51M	44.55M	53.06M	52.94M
Pretax Margin %	0.06%	0.08%	0.07%	0.05%	0.05%	0.07%	0.04%	0.03%	0.03%	0.03%
Income Tax+	31.74M	42.99M	44.74M	16.39M	20.52M	30.5M	16.97M	10.31M	14.67M	13.47M
Effective Tax Rate %	0.65%	0.64%	0.66%	0.84%	0.76%	0.76%	0.74%	0.77%	0.72%	0.75%
Net Income+	58.02M	77.4M	88.23M	83.52M	64.58M	98.68M	48.54M	34.24M	38.39M	39.47M
Net Margin %	0.04%	0.05%	0.05%	0.04%	0.04%	0.06%	0.03%	0.02%	0.02%	0.02%
Net Income Growth %	1.66%	0.33%	0.14%	-0.05%	-0.23%	0.53%	-0.51%	-0.29%	0.12%	0.03%
Net Income (Continuing)	58.02M	77.4M	88.23M	83.52M	64.58M	98.68M	48.54M	34.24M	38.39M	39.47M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.80	1.05	1.19	1.12	0.87	1.32	0.61	0.46	0.52	0.53
EPS Growth %	1.58%	0.31%	0.13%	-0.06%	-0.22%	0.52%	-0.54%	-0.25%	0.13%	0.02%
EPS (Basic)	0.81	1.06	1.20	1.13	0.87	1.32	0.61	0.46	0.52	0.54
Diluted Shares Outstanding	72.51M	73.47M	74.35M	74.61M	74.59M	74.78M	74.96M	74.35M	74.34M	73.99M
Basic Shares Outstanding	71.83M	72.75M	73.36M	74M	74.36M	74.7M	74.82M	74.34M	74.29M	73.75M
Dividend Payout Ratio	0.89%	0.69%	0.63%	0.68%	0.91%	0.62%	1.28%	1.85%	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	365.95M	414.62M	527.41M	508.14M	515.73M	572.4M	546.38M	508.63M	571.7M	556.65M
Cash & Short-Term Investments	102.69M	91.58M	82.78M	102.39M	118.04M	264.34M	185.19M	121.48M	147.46M	135.77M
Cash Only	33.19M	23.85M	9.56M	26.02M	27.33M	139.33M	70.79M	26.28M	54.33M	85.24M
Short-Term Investments	69.5M	67.73M	73.22M	76.36M	90.71M	125.01M	114.4M	95.2M	93.13M	50.53M
Accounts Receivable	214.85M	271.28M	378.72M	341.84M	340.93M	255.47M	302.2M	336.78M	383.51M	382.34M
Days Sales Outstanding	54.58	63.36	74.07	62.11	67.6	52.97	67.18	72.73	83.75	81.34
Inventory	36.31M	37.8M	42.39M	41.44M	36.52M	31.59M	26.02M	21.16M	18.48M	16.75M
Days Inventory Outstanding	10.72	10.3	9.6	8.54	8.26	7.73	6.73	5.16	4.63	4.11
Other Current Assets	0	0	0	22.47M	20.25M	21M	32.98M	29.21M	22.25M	21.8M
Total Non-Current Assets+	115M	113.82M	148.6M	184.47M	214.98M	221.04M	240.42M	209.7M	231.49M	258.82M
Property, Plant & Equipment	13.09M	13.46M	13.51M	12.9M	28.82M	26.56M	28.1M	22.98M	28.77M	28.2M
Fixed Asset Turnover	109.80x	116.14x	138.14x	155.72x	63.87x	66.27x	58.43x	73.57x	58.09x	60.84x
Goodwill	44.44M	44.44M	51.08M	51.08M	51.08M	51.08M	74.75M	75.53M	75.53M	75.53M
Intangible Assets	17.11M	14.41M	30.88M	26.52M	22.35M	18.19M	20.8M	15.95M	12.13M	9.44M
Long-Term Investments	16.4M	21.83M	36.86M	51.6M	46.99M	34.42M	29.26M	32.61M	24.83M	41.05M
Other Non-Current Assets	12.01M	9.87M	8.76M	21.81M	37.25M	46.82M	46.69M	34.3M	42.47M	53.73M
Total Assets+	480.95M	528.45M	676M	692.6M	730.71M	793.45M	786.8M	718.33M	803.18M	815.47M
Asset Turnover	2.99x	2.96x	2.76x	2.90x	2.52x	2.22x	2.09x	2.35x	2.08x	2.10x
Asset Growth %	0.02%	0.1%	0.28%	0.02%	0.06%	0.09%	-0.01%	-0.09%	0.12%	0.02%
Total Current Liabilities+	96.06M	100.87M	184.17M	163.39M	148.65M	162.26M	191.13M	178.62M	216.93M	192.55M
Accounts Payable	41.47M	42.91M	74.46M	61.47M	54.42M	52.24M	64.42M	68.3M	83.22M	81.15M
Days Payables Outstanding	12.25	11.69	16.86	12.66	12.31	12.78	16.66	16.65	20.85	19.91
Short-Term Debt	0	0	35.38M	30M	15.18M	5.3M	6.5M	25M	25M	8.4M
Deferred Revenue (Current)	0	0	-1000K	1000K	0	0	0	0	0	0
Other Current Liabilities	33.32M	27.97M	26.81M	29.59M	34.57M	34.11M	44.55M	41M	0	41.53M
Current Ratio	3.81x	4.11x	2.86x	3.11x	3.47x	3.53x	2.86x	2.85x	2.64x	2.89x
Quick Ratio	3.43x	3.74x	2.63x	2.86x	3.22x	3.33x	2.72x	2.73x	2.55x	2.80x
Cash Conversion Cycle	53.05	61.97	66.82	57.99	63.55	47.92	57.25	61.24	67.53	65.54
Total Non-Current Liabilities+	88.43M	88.73M	91.88M	88.43M	121.75M	150.73M	143M	113.54M	129.64M	123M
Long-Term Debt	0	0	0	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	11.65M	11.36M	11.3M	8.1M	11.23M	8.03M
Deferred Tax Liabilities	11.96B	9.98M	7.27M	7.2M	8.12M	8.42M	9.27M	7.07M	12.53M	12.7M
Other Non-Current Liabilities	88.43M	88.73M	91.88M	88.43M	101.99M	130.95M	122.43M	105.45M	105.87M	102.27M
Total Liabilities	184.49M	189.6M	276.05M	251.82M	270.4M	312.99M	334.12M	292.16M	346.57M	315.55M
Total Debt+	0	0	35.38M	30M	26.83M	16.66M	17.8M	33.1M	43.63M	16.43M
Net Debt	-33.19M	-23.85M	25.82M	3.98M	-501K	-122.67M	-52.99M	6.82M	-10.7M	-68.8M
Debt / Equity	-	-	0.09x	0.07x	0.06x	0.03x	0.04x	0.08x	0.10x	0.03x
Debt / EBITDA	-	-	0.26x	0.27x	0.29x	0.12x	0.23x	0.56x	0.63x	0.24x
Net Debt / EBITDA	-0.34x	-0.19x	0.19x	0.04x	-0.01x	-0.85x	-0.67x	0.12x	-0.15x	-1.01x
Interest Coverage	-	-	93.10x	32.40x	22.51x	-	46.31x	14.66x	6.96x	8.27x
Total Equity+	296.46M	338.84M	399.95M	440.78M	460.31M	480.46M	452.68M	426.17M	456.62M	499.93M
Equity Growth %	0.07%	0.14%	0.18%	0.1%	0.04%	0.04%	-0.06%	-0.06%	0.07%	0.09%
Book Value per Share	4.09	4.61	5.38	5.91	6.17	6.42	6.04	5.73	6.14	6.76
Total Shareholders' Equity	296.46M	338.84M	399.95M	440.78M	460.31M	480.46M	452.68M	426.17M	456.62M	499.93M
Common Stock	738K	742K	750K	753K	756K	758K	760K	762K	763K	765K
Retained Earnings	106.89M	130.94M	163.86M	190.09M	195.46M	200.89M	183.96M	154.5M	185.01M	224.56M
Treasury Stock	-11.01M	-10.19M	-9.86M	-9.66M	-9.44M	-8.96M	-30.16M	-27.91M	-37.75M	-41.44M
Accumulated OCI	543K	-319K	837K	158K	2.92M	5.56M	4M	-3.48M	-1.84M	-2.32M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	63.36M	41.4M	7.63M	80.03M	93.58M	217.21M	37.11M	-8.17M	43.5M	30.8M
Operating CF Margin %	0.04%	0.03%	0%	0.04%	0.05%	0.12%	0.02%	-0%	0.03%	0.02%
Operating CF Growth %	0.1%	-0.35%	-0.82%	9.49%	0.17%	1.32%	-0.83%	-1.22%	6.33%	-0.29%
Net Income	58.02M	77.4M	88.23M	83.52M	64.58M	98.68M	45.86M	34.63M	38.39M	39.47M
Depreciation & Amortization	7.66M	7.5M	8.89M	9.27M	13.94M	14.27M	14.67M	15.32M	14.34M	14.59M
Stock-Based Compensation	3.54M	4.25M	276K	5.9M	6.87M	7.87M	8.83M	9.21M	8.98M	9.16M
Deferred Taxes	15.97M	20K	1.89M	-13.01M	-684K	-5.89M	3.07M	5.05M	-4.82M	-2.94M
Other Non-Cash Items	5.04M	4.89M	3.04M	54.19M	19.66M	3.4M	7.83M	42.4M	30.77M	40.72M
Working Capital Changes	-26.87M	-52.66M	-94.68M	-59.84M	-10.78M	98.88M	-43.15M	-114.77M	-44.16M	-70.19M
Change in Receivables	-18.85M	-61.05M	-121.64M	-44.36M	-29.53M	38.08M	-37.19M	-78.71M	-74.56M	-61.81M
Change in Inventory	-846K	-1.49M	-1.87M	950K	4.76M	4.93M	5.6M	4.85M	2.69M	1.73M
Change in Payables	2.4M	-4.25M	11.2M	-9.14M	-9.53M	-7.25M	10.24M	-13.75M	7.43M	-9.74M
Cash from Investing+	-62.31M	-6.45M	-14.97M	-9.59M	-16.46M	-36.84M	-22.99M	2.58M	-3.29M	6.05M
Capital Expenditures	-5M	-5.44M	-5.4M	-4.94M	-4.37M	-4.34M	-5.69M	-5.21M	-5.41M	-6.34M
CapEx % of Revenue	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	267K	275K	338K	640K	0	274K	211K	393K	121K	211K
Cash from Financing+	-43.14M	-44.28M	-6.96M	-53.98M	-75.82M	-68.37M	-82.65M	-38.93M	-12.15M	-31.05M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-51.38M	-53.34M	-55.24M	-57.2M	-58.95M	-60.7M	-62.23M	-63.37M	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	8.12M	8.95M	12.81M	8.52M	-587K	2.25M	1.01M	-661K	-871K	-1.03M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	58.36M	35.96M	2.23M	75.09M	89.21M	212.87M	31.42M	-13.38M	38.09M	24.47M
FCF Margin %	0.04%	0.02%	0%	0.04%	0.05%	0.12%	0.02%	-0.01%	0.02%	0.01%
FCF Growth %	0.12%	-0.38%	-0.94%	32.63%	0.19%	1.39%	-0.85%	-1.43%	3.85%	-0.36%
FCF per Share	0.80	0.49	0.03	1.01	1.20	2.85	0.42	-0.18	0.51	0.33
FCF Conversion (FCF/Net Income)	1.09x	0.53x	0.09x	0.96x	1.45x	2.20x	0.76x	-0.24x	1.13x	0.78x
Interest Paid	258K	574K	1.36M	3.09M	3.46M	1.37M	1.39M	2.82M	7.81M	6.49M
Taxes Paid	7.9M	32.53M	35.37M	37.68M	20.03M	44.87M	21.23M	3.31M	5.58M	15.23M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	20.28%	24.37%	23.88%	19.87%	14.33%	20.98%	10.4%	7.79%	8.7%	8.25%
Return on Invested Capital (ROIC)	28.8%	30.55%	25.69%	17.27%	12.91%	-	12.7%	7.89%	9.33%	9.11%
Gross Margin	13.97%	14.28%	13.59%	11.79%	12.38%	15.22%	14.04%	11.44%	12.85%	13.29%
Net Margin	4.04%	4.95%	4.73%	4.16%	3.51%	5.61%	2.96%	2.03%	2.3%	2.3%
Debt / Equity	-	-	0.09x	0.07x	0.06x	0.03x	0.04x	0.08x	0.10x	0.03x
Interest Coverage	-	-	93.10x	32.40x	22.51x	-	46.31x	14.66x	6.96x	8.27x
FCF Conversion	1.09x	0.53x	0.09x	0.96x	1.45x	2.20x	0.76x	-0.24x	1.13x	0.78x
Revenue Growth	11.11%	8.76%	19.42%	7.65%	-8.37%	-4.37%	-6.72%	2.94%	-1.11%	2.65%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Dietary Services	-	605.51M	886.52M	1.03B	931.3M	865M	820.6M	894.5M	904.74M	950.31M
Dietary Services Growth	-	-	46.41%	16.75%	-10.02%	-7.12%	-5.13%	9.01%	1.14%	5.04%
Housekeeping Services	631.88M	957.15M	979.61M	973.8M	909.5M	895.3M	821.3M	795.7M	766.7M	765.4M
Housekeeping Services Growth	-	51.48%	2.35%	-0.59%	-6.60%	-1.56%	-8.27%	-3.12%	-3.64%	-0.17%
Laundry And Linen Services	275.48M	-	-	-	-	-	-	-	-	-
Laundry And Linen Services Growth	-	-	-	-	-	-	-	-	-	-
Maintenance Services And Other	2.36M	-	-	-	-	-	-	-	-	-
Maintenance Services And Other Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Healthcare Services Group, Inc. (HCSG) has a price-to-earnings (P/E) ratio of 36.5x. This suggests investors expect higher future growth.

Growth & Financials

Healthcare Services Group, Inc. (HCSG) reported $1.81B in revenue for fiscal year 2024. This represents a 103% increase from $889.1M in 2011.

Healthcare Services Group, Inc. (HCSG) grew revenue by 2.7% over the past year. Growth has been modest.

Yes, Healthcare Services Group, Inc. (HCSG) is profitable, generating $39.7M in net income for fiscal year 2024 (2.3% net margin).

Dividend & Returns

Healthcare Services Group, Inc. (HCSG) has a return on equity (ROE) of 8.3%. This is below average, suggesting room for improvement.

Healthcare Services Group, Inc. (HCSG) generated $157.9M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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