Healthcare Services Group, Inc.

Healthcare Services Group provides management and operating services to housekeeping, laundry, linen, facility maintenance, and dietary service departments at nursing homes, retirement complexes, rehab centers, and hospitals. The company operates through two segments: Housekeeping and Dietary. The Housekeeping segment cleans and sanitizes facilities, while the Dietary segment provides food purchasing, meal prep, and dietitian services. The company serves long-term care facilities, hospitals, and healthcare industry clients. It was incorporated in 1976 and is based in Pennsylvania.

Overview

Sector

Medical Care Facilities

Target Price

12.1 USD

Current Price

14.7 USD

Potential

-17%

Strengths

Price to book ratio (2.15) is lower than the sector mean (3.45).
The company has low debt. Net Debt to EBITDA Ratio is -0.72 and it is lower than the sector mean.
EV/EBIT (17.24) is lower than the sector mean.

Weaknesses

With a depreciation Potential of -17.27%, based on our fundamental analysis, it suggests the stock may be overvalued.
The company have lower returns than the sector in which it operates. ROIC (6.06%) is significantly lower than the sector mean (10.67%).
The Price to Free Cash Flow ratio (43.83) is significantly higher than the sector mean.
EBITDA Margin (3.96%) appears relatively low.

Key Financial Data

Indicator	Value
PER	27.2
EV/EBITDA	15.1
Price/Free Cash Flow'	43.8
ROIC	6.1%
Net Debt/EBITDA	-0.7