Services-Nursing & Personal Care Facilities · SIC 8050

HEALTHCARE SERVICES GROUP INC

HCSG

Watch

Latest revenue

$462.8M

as of 2026-03-31

Latest net income

$26.1M

as of 2026-03-31

Net margin

5.6%

as of 2026-03-31

Community sentiment

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HCSG vs S&P 500 · rebased to 100

+6.0% / yr 13.7 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 25.9% total
Compare:

Live market

delayed ≤15 min
$21.32
3.87%
Market cap
$1.46B
Enterprise value
$1.33B
P/E (trailing)
24.8×
Forward P/E
P/B
2.85×
Dividend yield
0.0%
52-wk high
$24.39
52-wk low
$12.66
Beta
Shares out
68.6M

What this company does

AI

Item I. Business. General Healthcare Services Group, Inc. is a Pennsylvania corporation, incorporated on November 22, 1976. We provide management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of healthcare facilities, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. We provide such services to approximately 2,700 facilities throughout the continental United States as of December 31, 2023. We believe we are the largest provider of housekeeping and laundry management services to the long-term care industry in the United…

AI summary unavailable — showing raw filing excerpt

Generated from HCSG's filing dated 2024-02-16

Key risks

AI

Table of Contents Item 1A. Risk Factors You should carefully consider the risk factors we have described below, as well as other related information contained within this annual report on Form 10-K as these factors could materially and adversely affect our business, results of operations, financial condition and cash flows. We believe that the risks described below are our most significant risk factors but there may be risks and uncertainties that are not currently known to us or that we currently deem to be immaterial. Risks Related to Macroeconomic Conditions War, terrorism, other acts of violence or natural or man-made disasters may affect the markets in which the Company operates, the…

AI summary unavailable — showing raw filing excerpt

Generated from HCSG's filing dated 2024-02-16

6.7
of 10

ActaClear Score

Above avg
#1 of 3 in Services-Nursing & Personal Care Facilities
+0.0 · 5d
Profitability·25%
7.5
Growth·15%
10.0
Value·20%
5.0
Quality·20%
Momentum·20%
5.0

Computed from 5 years of SEC fundamentals + latest market data, ranked within Services-Nursing & Personal Care Facilities (3 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

1.62
Price / FV

Fair value · DCF

Deeply overvalued
~38% downside at this growth
0.9% / yr
-5%30%
Terminal growthWACC 9.8% · 10y forecast
Market-implied growth at today's price: 8.4% / yrfor 10 years, holding WACC 9.8% and terminal 2.5%.
Current price
$20.43
DCF fair value
$12.58
FCF base (last FY)
$59.06M
Net debt
$-125.19M
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does HCSG's current valuation compare to its own past?

Current P/E
24.8×
Own 5y average
21.3×
Own 5y median
21.4×
vs. own average
+16%
Industry 5y avg P/E
21.3×
Median P/E across the top 3 peers in Services-Nursing & Personal Care Facilities by market cap, then averaged across 4 years.
vs. industry
+16%
PEG (this co.)
28.87
5y revenue CAGR
0.9%
Industry PEG
Industry 5y avg growth
-0.4%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.