Healthcare Services Stock Analysis, Valuation (NASDAQ:HCSG)
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 2.2/5
Amigobulls HCSG stock analysis relies on business fundamentals such as Healthcare Services revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 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?
- With a debt/equity ratio of 0.07, Healthcare Services is comparatively less leveraged than its peers in the Business Services sector.
- Healthcare Services generates a high return on invested capital of 16.6.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Healthcare Services at 17.3.
Should you sell HCSG stock?
- Trading at a PE ratio of 50.3, HCSG stock is overvalued in comparison to sector average multiple of 23.8.
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.