Last Updated: 18 Sep 2024
Executive Summary
Healthcare Services Group Inc. (HCSG) is a provider of management, administrative, and operational services to healthcare facilities. The company has a market capitalization of $846.1 million and trades on the NASDAQ exchange. HCSG's latest stock price is $11.53.
Company Overview
HCSG provides a range of services to healthcare facilities, including cleaning, laundry, bedding, facility maintenance, and dietary services. The company has a national footprint and serves over 1,500 facilities. HCSG's customers include nursing homes, retirement complexes, rehabilitation centers, and hospitals.
Fundamental Analysis
HCSG's financial performance has been mixed in recent years. The company's revenue has grown steadily, but its profitability has declined. In 2023, HCSG reported revenue of $1.68 billion and net income of $45.4 million. The company's gross profit margin was 11.5%, and its operating margin was -0.7%.
HCSG's financial leverage is moderate. The company's debt-to-equity ratio is 1.1. HCSG's interest coverage ratio is 3.2.
Technical Analysis
HCSG's stock price has been in a downtrend since early 2023. The stock price is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 35.7, which indicates that the stock is oversold.
Short Term Outlook
HCSG's stock price is likely to remain under pressure in the short term. The company's financial performance has been mixed, and the technical indicators are bearish. Investors should be cautious about buying HCSG stock at this time.
Long Term Outlook
HCSG's long-term outlook is more positive. The company's revenue is growing, and the healthcare industry is expected to continue to grow in the coming years. HCSG is well-positioned to benefit from this growth. Investors who are willing to take a long-term view may want to consider buying HCSG stock.
Analyst Recommendations
The consensus analyst rating on HCSG stock is "hold." Two analysts recommend buying the stock, three recommend holding the stock, and none recommend selling the stock. The average analyst price target is $14.25.
