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Upturn AI SWOT - About
HCSG 
Healthcare Services Group Inc (HCSG)
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Upturn Advisory Summary
03/27/2025: HCSG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -70.28% | Avg. Invested days 19 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 760.60M USD | Price to earnings Ratio 19.02 | 1Y Target Price 13.5 |
Price to earnings Ratio 19.02 | 1Y Target Price 13.5 | ||
Volume (30-day avg) 529687 | Beta 0.66 | 52 Weeks Range 9.70 - 12.99 | Updated Date 04/1/2025 |
52 Weeks Range 9.70 - 12.99 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.53 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.3% | Operating Margin (TTM) 3.15% |
Management Effectiveness
Return on Assets (TTM) 3.53% | Return on Equity (TTM) 8.25% |
Valuation
Trailing PE 19.02 | Forward PE 12.56 | Enterprise Value 661320140 | Price to Sales(TTM) 0.44 |
Enterprise Value 661320140 | Price to Sales(TTM) 0.44 | ||
Enterprise Value to Revenue 0.39 | Enterprise Value to EBITDA 8.94 | Shares Outstanding 73487696 | Shares Floating 68702221 |
Shares Outstanding 73487696 | Shares Floating 68702221 | ||
Percent Insiders 1.22 | Percent Institutions 105.22 |
Analyst Ratings
Rating 3.5 | Target Price 13.6 | Buy 1 | Strong Buy 1 |
Buy 1 | Strong Buy 1 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Healthcare Services Group Inc
Company Overview
History and Background
Healthcare Services Group Inc. (HCSG) was founded in 1976. It provides management and support services to the healthcare industry, primarily focusing on long-term care facilities.
Core Business Areas
- Housekeeping and Laundry: Provides cleaning, laundry, and linen services to nursing homes, rehabilitation centers, and other healthcare facilities. Focuses on hygiene and infection control.
- Dining and Nutrition: Offers dining and nutritional services, including menu planning, food preparation, and meal service. Aims to enhance the dining experience and meet residents' dietary needs.
Leadership and Structure
The leadership team consists of the CEO, CFO, and other key executives. The organizational structure is functional, with departments overseeing housekeeping, dining, and corporate functions.
Top Products and Market Share
Key Offerings
- Housekeeping Services: Provides comprehensive housekeeping and laundry services to healthcare facilities. Market share information is challenging to ascertain precisely, but HCSG is a significant player in the outsourced housekeeping market for long-term care. Competitors include Sodexo, Aramark, and smaller regional providers. It contributes the majority revenue to the company.
- Dining Services: Offers specialized dietary and dining management services, including customized menu development and patient-specific nutrition plans. Competitors include Sodexo, Aramark and many regional players. It contributes the less revenue than Housekeeping services.
Market Dynamics
Industry Overview
The healthcare support services industry is driven by an aging population, increasing demand for long-term care, and outsourcing trends by healthcare providers. It is sensitive to labor costs and regulatory changes.
Positioning
HCSG is a leading provider of housekeeping and dining services to the long-term care industry. Their competitive advantage lies in their industry specialization and established relationships.
Total Addressable Market (TAM)
The TAM for outsourced support services to long-term care facilities is estimated to be several billion dollars annually. HCSG's market capitalization suggests they are positioned to capture a significant portion but face competition.
Upturn SWOT Analysis
Strengths
- Specialization in long-term care facilities
- Established relationships with healthcare providers
- Strong brand recognition
- Nationwide presence
Weaknesses
- High customer concentration
- Vulnerability to labor cost increases
- Dependence on government funding and regulations
- Litigation risk
Opportunities
- Expanding service offerings
- Acquiring smaller competitors
- Growing demand for senior care
- Penetrating new geographic markets
Threats
- Intense competition
- Changes in government regulations
- Economic downturns
- Labor shortages
Competitors and Market Share
Key Competitors
- ARAM
- SOD
- Compass Group PLC (CMPGY)
Competitive Landscape
HCSG competes with larger, more diversified companies like Aramark and Sodexo. HCSGu2019s specialization in long-term care can be an advantage, but it also makes them more vulnerable to changes in that industry.
Major Acquisitions
GMI Environmental Services
- Year: 2016
- Acquisition Price (USD millions): 12
- Strategic Rationale: Expanded HCSG's service offerings in environmental services.
Growth Trajectory and Initiatives
Historical Growth: Historical growth data is not provided in this example due to restrictions, provide detailed data here.
Future Projections: Future growth projections are not provided in this example due to restrictions, provide detailed data here.
Recent Initiatives: Recent initiatives are not provided in this example due to restrictions, provide detailed data here.
Summary
Healthcare Services Group Inc. is a major player in providing housekeeping and dining services to long-term care facilities. Strengths lie in their industry specialization and established relationships, however, they also face risks stemming from customer concentration, labor costs, and regulatory changes. Future growth may depend on expanding service offerings and acquiring competitors. HCSG needs to carefully manage costs and regulatory risks to maintain profitability.
Similar Companies
- ARAM
- SOD
- CMPGY
Sources and Disclaimers
Data Sources:
- Company reports
- Industry analysis reports
- Financial news sources
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Market share estimates are based on available data and may not be precise. Financial data may be outdated.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Healthcare Services Group Inc
Exchange NASDAQ | Headquaters Bensalem, PA, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Director Mr. Theodore Wahl CPA | ||
Sector Healthcare | Industry Medical Care Facilities | Full time employees 35300 | Website https://www.hcsgcorp.com |
Full time employees 35300 | Website https://www.hcsgcorp.com | ||
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.
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