Healthcare Services Group, Inc. (HCSG): Price and Financial Metrics

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HCSG Price/Volume Stats

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

Below please find a table outlining a discounted cash flow forecast for HCSG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Healthcare Services Group Inc ranked in the 67th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 69.17%. In terms of the factors that were most noteworthy in this DCF analysis for HCSG, they are:

• The company's debt burden, as measured by earnings divided by interest payments, is 95.02; that's higher than 94.27% 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 merely 5.1% 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 55.96% of tickers in our DCF set.

CAH, DGX, SUPN, HCA, and HRC can be thought of as valuation peers to HCSG, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.