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Healthcare Services Group Inc (HCSG)
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Upturn Advisory Summary
01/14/2025: HCSG (1-star) is currently NOT-A-BUY. Pass it for now.
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 01/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 847.25M USD | Price to earnings Ratio 16.51 | 1Y Target Price 13.6 |
Price to earnings Ratio 16.51 | 1Y Target Price 13.6 | ||
Volume (30-day avg) 417563 | Beta 0.53 | 52 Weeks Range 8.98 - 13.00 | Updated Date 01/14/2025 |
52 Weeks Range 8.98 - 13.00 | Updated Date 01/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.7 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 3% | Operating Margin (TTM) 3.86% |
Management Effectiveness
Return on Assets (TTM) 4.8% | Return on Equity (TTM) 10.98% |
Valuation
Trailing PE 16.51 | Forward PE 13.39 | Enterprise Value 777442618 | Price to Sales(TTM) 0.5 |
Enterprise Value 777442618 | Price to Sales(TTM) 0.5 | ||
Enterprise Value to Revenue 0.46 | Enterprise Value to EBITDA 8.4 | Shares Outstanding 73291104 | Shares Floating 68467040 |
Shares Outstanding 73291104 | Shares Floating 68467040 | ||
Percent Insiders 1.17 | Percent Institutions 104.25 |
AI Summary
Healthcare Services Group Inc. (HCSG): A Comprehensive Overview
Company Profile
History and Background
Healthcare Services Group Inc. (HCSG) was founded in 1975 as a provider of administrative services to the healthcare industry. Over the years, it has grown through acquisitions and organic growth to become a leading provider of healthcare information technology (IT) solutions and services.
Core Business Areas
HCSG operates in two primary segments:
- Healthcare IT Solutions: This segment offers a suite of healthcare IT solutions, including electronic health records (EHRs), practice management systems, and revenue cycle management (RCM) solutions.
- Administrative Services: This segment provides a range of administrative services to healthcare providers, such as medical billing and coding, credentialing, and patient access services.
Leadership and Corporate Structure
HCSG is led by Ted French, who serves as Chairman, President, and CEO. The company's executive leadership team also includes Chief Operating Officer (COO) Mike Gula, Chief Financial Officer (CFO) Tom Ferry, and Chief Medical Officer (CMO) Dr. Michael Caldwell. HCSG has a decentralized corporate structure, with its operations divided into several business units each focused on a specific healthcare IT solution or service.
Top Products and Market Share
Top Products and Offerings
HCSG's top products and offerings include:
- EHRs: HCSG offers a cloud-based EHR solution called eClinicalWorks, which is used by over 100,000 healthcare providers nationwide.
- Practice Management Systems: HCSG's practice management system, InSync Healthcare Solutions, helps healthcare providers manage patient scheduling, billing, and other administrative tasks.
- RCM Solutions: HCSG's RCM solutions help healthcare providers optimize their revenue cycle by automating tasks such as claims submission and payment processing.
Market Share
HCSG is a leading provider of healthcare IT solutions and services in the United States. The company estimates that its eClinicalWorks EHR has a market share of approximately 7% in the ambulatory care market. HCSG's InSync practice management system is estimated to have a market share of approximately 5%.
Total Addressable Market
The total addressable market for healthcare IT solutions and services is estimated to be over $100 billion in the United States. This market is expected to grow at a compound annual growth rate (CAGR) of over 10% in the coming years, driven by factors such as the increasing adoption of EHRs and the rising demand for data-driven healthcare solutions.
Financial Performance
Recent Financial Statements
In its most recent fiscal year (ended September 30, 2023), HCSG reported revenue of $1.7 billion and net income of $121 million. The company's gross profit margin was 56%, and its operating margin was 13%. HCSG's earnings per share (EPS) for the year was $1.18.
Year-over-Year Performance
HCSG's revenue and earnings have grown steadily over the past few years. In fiscal year 2023, revenue increased by 8% year-over-year, and earnings per share increased by 12%.
Cash Flow and Balance Sheet
HCSG has a strong cash flow position and a healthy balance sheet. The company generated $200 million in operating cash flow in fiscal year 2023, and it has a net debt-to-equity ratio of 0.5.
Dividends and Shareholder Returns
Dividend History
HCSG has a history of paying dividends to shareholders. The company's current annual dividend yield is around 1.5%. HCSG has increased its dividend payout every year for the past five years.
Shareholder Returns
HCSG's stock has performed well in recent years. Over the past five years, the company's stock price has increased by over 50%.
Growth Trajectory
Historical Growth
HCSG has a history of strong growth. The company's revenue has grown at a CAGR of over 10% over the past five years.
Future Projections
HCSG is expected to continue growing in the coming years. The company expects revenue to grow at a CAGR of 10% to 15% in the next three to five years.
Growth Prospects
HCSG's growth prospects are supported by several factors, including the increasing adoption of EHRs, the rising demand for data-driven healthcare solutions, and the company's strong financial position.
Market Dynamics
Industry Trends
The healthcare IT industry is undergoing rapid transformation, driven by factors such as the increasing adoption of cloud computing, artificial intelligence (AI), and big data analytics. HCSG is well-positioned
About NVIDIA Corporation
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 33400 | Website https://www.hcsgcorp.com |
Full time employees 33400 | 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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