Healthcare Services Stock Analysis, Valuation (NASDAQ:HCSG)

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$44.5 $1.06 (2.33%) HCSG stock closing price Mar 19, 2018 (Closing)
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Healthcare Services
Updated on : Mar 19, 2018
previous close
HCSG 45.6 (0%)
S&P 500 2752 (0%)
Closing Price On: Mar 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
Compared to the industry
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
HCSG dividend yield:
Recent Growth
Low Debt Burden
Cash Flow
PE Valuation
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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Healthcare Services Stock Analysis

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View the Healthcare Services stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for HCSG stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Healthcare Services Group, Inc. Stock Rating 2.8/5

Amigobulls HCSG stock analysis relies on business fundamentals such as Healthcare Services revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. We compare Healthcare Services valuation with its sector peers to gauge relative attractiveness of HCSG stock. Healthcare Services stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy HCSG stock?

  • Healthcare Services sales grew by 25.3% year on year in 2017 Q4.
  • Healthcare Services has a lower debt burden than its peers in the Business Services sector, with a debt/equity ratio of  0.09.
  • Healthcare Services has an attractive ROIC (Return on Invested Capital) of 24.9%
  • The LTM ROE of 23.7% for Healthcare Services is attractive.

Should you sell HCSG stock?

  • The company has an operating cash flow which is 0.2 times the net income. This is not a healthy sign.
  • Trading at a PE ratio of 37.7, HCSG stock is overvalued in comparison to industry average multiple of 22.8.
  • Healthcare Services has a low FCF (Free Cash Flow) margin of 0.6%.

Comments on this video and Healthcare Services stock

Investors can use Amigobulls Healthcare Services stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Healthcare Services revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about HCSG stock.