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Upturn AI Summary - About
Healthcare Services Group Inc(HCSG)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Growth is steady and tied to demographics rather than explosive, making it a conservative growth choice. |
| Momentum investor | Weak fit | The stock often lacks the volatility or rapid appreciation typical of high-momentum candidates. |
| Value investor | Mixed fit | Valuation is often tied to stable cash flows, which may appeal to those looking for defensive, fairly priced assets. |
| Dividend investor | Strong fit | The company has a consistent history of paying and growing dividends for long-term income-focused investors. |
| Low-risk investor | Strong fit | Its business model is relatively defensive, serving essential needs in healthcare facilities. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock can react significantly to changes in healthcare labor market conditions. |
| Valuation risk | Low | The company is generally valued based on steady, predictable cash flows rather than speculative growth. |
| Competition risk (service sector competition) | Medium / high | Large competitors like Aramark can leverage scale to challenge HCSG's pricing. |
| Business quality | Medium | The business provides essential services with high retention, though it operates with thin margins. |
| Dividend income | Low / none | The dividend is considered stable, reducing the risk of sudden payouts cuts. |
| Execution risk | Medium | Operational success depends heavily on hiring and maintaining labor in a tight job market. |
Price Behavior

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

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 Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
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 area | What it includes | Retail investor read |
|---|---|---|
| Housekeeping & Laundry | Staffing and management of facility cleaning and laundry services. | The company acts as the essential cleaning crew for nursing homes. |
| Dietary Services | Management 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
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 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
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 | Website https://www.hcsgcorp.com |
Full time employees 36000 | 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. 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.

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