Healthcare Services Group, Inc. (HCSG) Company Bio
Healthcare Services Group provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates in two segments, Housekeeping and Dietary. The company was founded in 1976 and is based in Bensalem, Pennsylvania.
HCSG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Healthcare Services Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Healthcare Services Group Inc ranked in the 68th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Healthcare Services Group Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 62.89; that's higher than 93.41% of US stocks in the Healthcare sector that have positive free cash flow.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than just 4.34% of the free cash flow producing stocks we're observing.
HCSG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 55.78% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Healthcare Services Group Inc? See CRHM, EBS, LH, ABBV, and SGRY.
Healthcare Services Group, Inc. (NASDAQ:HCSG) – Stock analysts at Jefferies Financial Group boosted their FY2020 earnings per share estimates for shares of Healthcare Services Group in a research note issued to investors on Wednesday, October 21st. Jefferies Financial Group analyst B. Tanquilut now forecasts that the business services provider will post earnings per share of […]
Healthcare Services Group, Inc. (NASDAQ:HCSG) – Equities researchers at Jefferies Financial Group upped their FY2020 earnings estimates for shares of Healthcare Services Group in a research note issued on Wednesday, October 21st. Jefferies Financial Group analyst B. Tanquilut now expects that the business services provider will post earnings of $1.26 per share for the year, […]
Healthcare Services Group (NASDAQ:HCSG) had its target price decreased by investment analysts at Credit Suisse Group from $31.00 to $26.00 in a research note issued to investors on Thursday, AnalystRatings.net reports. The firm currently has a “neutral” rating on the business services provider’s stock. Credit Suisse Group’s price objective points to a potential upside of […]