Healthcare Services Group Inc logo

Healthcare Services Group Inc(HCSG)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$20.87
10/02/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for HCSG

10/02/2026: HCSG (1-star) is currently NOT-A-BUY. Pass it for now.

Healthcare Services Group is a specialized provider of housekeeping, laundry, and dietary management services for the US long-term care industry. The company is known for its stable, contract-based revenue model and long-standing relationships with facility operators. Its main growth opportunity lies in the continued trend toward outsourcing facility management as healthcare providers face persistent staffing shortages. However, the company faces significant risks from labor wage inflation, regulatory changes, and pricing pressure from large competitors. It is best suited for income-focused or defensive investors who should monitor labor market trends and facility occupancy rates as key indicators of future operational health.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is steady and tied to demographics rather than explosive, making it a conservative growth choice.
Momentum investorWeak fitThe stock often lacks the volatility or rapid appreciation typical of high-momentum candidates.
Value investorMixed fitValuation is often tied to stable cash flows, which may appeal to those looking for defensive, fairly priced assets.
Dividend investorStrong fitThe company has a consistent history of paying and growing dividends for long-term income-focused investors.
Low-risk investorStrong fitIts business model is relatively defensive, serving essential needs in healthcare facilities.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock can react significantly to changes in healthcare labor market conditions.
Valuation riskLowThe company is generally valued based on steady, predictable cash flows rather than speculative growth.
Competition risk (service sector competition)Medium / highLarge competitors like Aramark can leverage scale to challenge HCSG's pricing.
Business qualityMediumThe business provides essential services with high retention, though it operates with thin margins.
Dividend incomeLow / noneThe dividend is considered stable, reducing the risk of sudden payouts cuts.
Execution riskMediumOperational success depends heavily on hiring and maintaining labor in a tight job market.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -40.83%
Avg. Invested days 28
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/02/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
HCSG receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
HCSG has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+49.6%) and solid cash generation (FCF margin 7.6%) are partially offset by moderate revenue growth (+7.1%), soft profitability (net margin 3.2%), modest insider ownership of 1.39%.

Financial Health Rating

★★★★★
HCSG's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 50.3%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is HCSG's strongest growth driver at +468.7% FY2025 versus FY2024 (strong, 5 stars). By comparison, earnings growth (+49.6%, strong) is also strong, while revenue growth (+7.1%, moderate) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 112.8% and approximately 98.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.39% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 16.57%
Vanguard Portfolio Management, LLC 7.40%
Vanguard Capital Management, LLC 4.43%
State Street Corp 4.25%
American Century Companies Inc 3.88%

Unit Economics (Per $1K Revenue)

★★★★★
HCSG generates approximately $130 of gross profit, $26 of operating income, and $76 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Weak margins explain the 2-star rating, with solid cash conversion and moderate capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 12.98%

Quantitative Style Profile

★★★★★
HCSG has a high-quality, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.41B USD
Price to earnings Ratio 11.97
1Y Target Price 27
Price to earnings Ratio 11.97
1Y Target Price 27
Volume (30-day avg) 645.7K shares
Beta 0.81
52 Weeks Range 15.13 - 25.75
Updated Date 10/02/2026
52 Weeks Range 15.13 - 25.75
Updated Date 10/02/2026
Dividends yield (FY) -
Basic EPS (TTM) 1.72

How Company Makes Money

Business areaWhat it includesRetail investor read
Housekeeping & LaundryStaffing and management of facility cleaning and laundry services.The company acts as the essential cleaning crew for nursing homes.
Dietary ServicesManagement of food service programs and nutritional plans.The company manages the kitchens and dining experiences for patients.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 11.97
Forward PE 17.36
Enterprise Value 1.31B
Price to Sales(TTM) 0.76
Enterprise Value 1.31B
Price to Sales(TTM) 0.76
Enterprise Value to Revenue 0.7
Enterprise Value to EBITDA 7.79
Shares Outstanding 68.63M
Shares Floating 67.85M
Shares Outstanding 68.63M
Shares Floating 67.85M
Percent Insiders 1.39
Percent Institutions 112.8

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Healthcare Services Group Inc

Exchange NASDAQ
Headquarters 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 36000
Full time employees 36000

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. The company operates in two segments, Environmental Services and Dietary. Its Environmental Services segment engages in cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment is involved in the management of the customers' dietary departments, which focus 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 headquartered in Bensalem, Pennsylvania.