Healthcare Services Group, Inc. (HCSG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-43.7%

$14.49

vs $25.76 price

Levered DCF

$13.51

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

7.06

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.32×	21.52×	19.94×	26.09×	27.37×	21.29×	27.95×	35.56×
P/B	2.71×	1.71×	1.69×	2.09×	2.94×	4.37×	3.93×	6.75×
P/S	0.75×	0.5×	0.46×	0.53×	0.81×	1.19×	0.98×	1.48×
EV / EBITDA	14.47×	10.66×	10.09×	14.3×	15.67×	13.65×	17.64×	26.52×
Gross margin	13.0%	13.3%	12.8%	11.4%	14.0%	15.2%	12.4%	11.8%
Operating margin	2.6%	3.1%	3.3%	2.6%	3.9%	0.0%	4.2%	5.0%
Net margin	3.2%	2.3%	2.3%	2.0%	3.0%	5.6%	3.5%	4.2%
Current ratio	3.38×	2.89×	2.64×	2.85×	2.86×	3.53×	3.47×	3.11×
Debt / equity	0.05×	0.03×	0.1×	0.08×	0.04×	0.03×	0.06×	0.07×
Interest coverage	30.72×	8.27×	6.96×	14.66×	46.31×	0×	22.51×	32.4×
Dividend yield	0.0%	0.0%	0.0%	7.1%	4.7%	2.9%	3.3%	1.9%
Payout ratio	0.0%	0.0%	0.0%	185.1%	128.2%	61.5%	91.3%	68.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.6%	7.9%	8.4%	8.0%	10.7%	20.5%	14.0%	18.9%
Return on invested capital	6.6%	6.3%	6.4%	6.0%	7.9%	0.0%	9.9%	15.0%
Return on assets	7.3%	4.8%	4.8%	4.8%	6.2%	12.4%	8.8%	12.1%
Free cash flow yield	10.1%	2.9%	4.9%	-1.5%	2.4%	10.1%	4.9%	2.5%
Earnings yield	4.3%	4.6%	5.0%	3.8%	3.6%	4.7%	3.6%	2.8%
Enterprise value	$1.2B	$788.2M	$759.7M	$898.9M	$1.3B	$2B	$1.8B	$3B
Net debt / EBITDA	-1.58×	-0.93×	-0.14×	0.11×	-0.65×	-0.85×	-0×	0.04×
Cash conversion cycle (days)	53	66	68	63	57	48	64	58