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Healthcare Services Group Inc (HCSG)


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Upturn Advisory Summary
10/20/2025: HCSG (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $18
1 Year Target Price $18
2 | Strong Buy |
0 | Buy |
3 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -49.89% | Avg. Invested days 24 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.18B USD | Price to earnings Ratio 116.79 | 1Y Target Price 18 |
Price to earnings Ratio 116.79 | 1Y Target Price 18 | ||
Volume (30-day avg) 5 | Beta 0.7 | 52 Weeks Range 9.12 - 16.91 | Updated Date 10/20/2025 |
52 Weeks Range 9.12 - 16.91 | Updated Date 10/20/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.14 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-10-22 | When - | Estimate 0.2053 | Actual - |
Profitability
Profit Margin 0.61% | Operating Margin (TTM) -10.08% |
Management Effectiveness
Return on Assets (TTM) 0.56% | Return on Equity (TTM) 2.28% |
Valuation
Trailing PE 116.79 | Forward PE 16.78 | Enterprise Value 1078565471 | Price to Sales(TTM) 0.67 |
Enterprise Value 1078565471 | Price to Sales(TTM) 0.67 | ||
Enterprise Value to Revenue 0.61 | Enterprise Value to EBITDA 30.46 | Shares Outstanding 72412725 | Shares Floating 71528566 |
Shares Outstanding 72412725 | Shares Floating 71528566 | ||
Percent Insiders 1.27 | Percent Institutions 103.49 |
Upturn AI SWOT
Healthcare Services Group Inc

Company Overview
History and Background
Healthcare Services Group, Inc. (HCSG) was founded in 1976. It provides housekeeping, laundry, dining, and nutritional services to long-term care and other healthcare facilities.
Core Business Areas
- Housekeeping and Laundry Services: Provides cleaning, disinfecting, and laundry services to healthcare facilities.
- Dining and Nutrition Services: Offers meal preparation, menu planning, and dietary services to healthcare facilities.
Leadership and Structure
Daniel McCartney serves as President and CEO. The company operates with regional and divisional management structures overseeing client relationships and service delivery.
Top Products and Market Share
Key Offerings
- Housekeeping Services: Cleaning and maintenance for healthcare facilities. Market share information is fragmented across numerous regional providers; precise HCSG market share data is not readily available. Competitors include Sodexo, Aramark, and smaller regional providers.
- Dining Services: Food service management and nutritional services for healthcare facilities. Competitors include Sodexo, Aramark, Morrison Healthcare, and smaller regional providers.
Market Dynamics
Industry Overview
The market for outsourced services in healthcare facilities is influenced by demographic trends (aging population), regulatory requirements, and cost pressures. The industry is moderately fragmented with national and regional players.
Positioning
HCSG is positioned as a leading provider of housekeeping and dining services to long-term care facilities, primarily focusing on smaller to mid-sized facilities. Its competitive advantage lies in its specialization and long-term relationships.
Total Addressable Market (TAM)
The TAM for outsourced healthcare facility services is estimated to be in the billions of dollars annually. HCSG's position allows it to capture a portion of this TAM, focusing on its niche market of long-term care facilities. Precise TAM figures are difficult to obtain due to market fragmentation.
Upturn SWOT Analysis
Strengths
- Specialization in long-term care facilities
- Established relationships with clients
- Extensive experience in the industry
- National presence
Weaknesses
- Customer Concentration
- Exposure to minimum wage increases
- Reliance on outsourcing model
- High Debt Burden
Opportunities
- Expanding service offerings (e.g., specialized cleaning)
- Acquiring smaller regional providers
- Penetrating new geographic markets
- Leveraging technology to improve efficiency
Threats
- Increased competition from larger outsourcing providers
- Changes in healthcare regulations
- Economic downturn affecting occupancy rates in healthcare facilities
- Labor shortages
Competitors and Market Share
Key Competitors
- ARAMARK (ARMK)
- Sodexo (SW.PA)
Competitive Landscape
HCSG competes with larger, diversified outsourcing providers as well as smaller, regional players. Its specialization in long-term care provides a niche, but it faces challenges from competitors with greater scale and resources.
Major Acquisitions
Professional Dining Management
- Year: 2012
- Acquisition Price (USD millions): 23
- Strategic Rationale: Expanded HCSG's dining service capabilities.
Growth Trajectory and Initiatives
Historical Growth: HCSG has experienced moderate growth over the past decade, driven by acquisitions and expansion into new markets. However, growth has slowed more recently due to market challenges.
Future Projections: Analyst estimates for HCSG's future growth are moderate, contingent on their ability to manage costs, retain clients, and capitalize on new opportunities. Refer to analyst reports for specific projections.
Recent Initiatives: Recent initiatives include focusing on cost containment, improving client retention, and exploring new service offerings. Specific details are available in company presentations and press releases.
Summary
Healthcare Services Group is a specialized service provider for long-term care facilities. Its specialization offers a niche, but the company faces challenges from larger competitors. Cost management and client retention are crucial for future success. While their share price has struggled recently, the aging demographic of the US could be a tailwind for their future business.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company 10-K filings
- Company Investor Relations
- Analyst reports
- Market research reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share figures are estimates based on available data and may not be precise. Consult with a financial professional before making any investment decisions.
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 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. Its Dietary segment is involved in the management of the customers' dietary departments, which focuses on food purchasing, meal preparation, and professional dietitian services, such as the development of menus that meet the dietary needs of residents; and the provision of on-site management and clinical consulting services. 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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