Healthcare Services Group, Inc. (HCSG) AI Stock Analysis

Healthcare Services Group, Inc. delivers management, administrative, and operational services to healthcare facilities across the United States, including nursing homes, retirement complexes, rehabilitation centers, and hospitals. The company operates through two core segments: Housekeeping and Dietary. In the Housekeeping segment, it handles cleaning, disinfection, and sanitization of resident rooms and communal areas, along with laundry processing for linens and uniforms. In the Dietary segment, it manages food purchasing, meal preparation, nutritional planning guided by professional dietitians, on-site management, and clinical consulting. Founded in 1976 and based in Bensalem, Pennsylvania, the company served approximately 3,000 facilities nationwide as of December 31, 2021.

Between FY2021 and FY2025, revenue increased from $1.64B to $1.84B, yielding a 5-year revenue CAGR of 0.9%. Top-line performance fluctuated over that period, with revenue rising 2.9% in FY2022, declining 1.1% in FY2023, expanding 2.7% in FY2024, and climbing 7.1% in FY2025. Gross margin was 13.0% and operating margin was 2.6% in FY2025, while net income rose to $59.1M with EPS of $0.82. In the trailing twelve months ended June 30, 2026, revenue stood at $1.86B with a profit margin of 6.6%. In the latest quarter, year-over-year revenue grew 2.7% and quarterly earnings increased 60.9%.

As of June 30, 2026, Healthcare Services Group held $200.9M in cash and short-term investments alongside $17.7M in total debt, creating a net cash position of $183.1M. The company reported a current ratio of 3.02 and a debt-to-equity ratio of 0.03 against $518.8M in shareholders' equity. In FY2025, operating cash flow was $145.0M and free cash flow reached $139.2M. Capital expenditures totaled $5.8M, while $61.6M was used for share buybacks, contributing to a 5-year share count change of -5.2%.

HCSG carries a market capitalization of $1.45B and an enterprise value of $1.31B. Its trailing P/E of 12.4x sits below the median of its US-listed Healthcare peers of 24.6x, while its forward P/E of 17.4x compares with the peer median of 17.3x. The stock trades at an EV/EBITDA of 7.8x versus the peer median of 12.0x, and a price-to-sales ratio of 0.8x against the peer median of 4.1x. Over the past year, the stock returned 28.7%, exceeding the S&P 500 (SPY) return of 16.8%, although its 5-year return of -0.6% lagged the index return of 83.0%.

Wall Street coverage includes 4 Strong Buy ratings and 3 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $26.67, indicating 26.2% upside from the last close of $21.13. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.92B and EPS of $1.20, representing 47.7% EPS growth. For the subsequent fiscal year, 7 analysts anticipate revenue of $2.06B and EPS of $1.22. The company recorded 4 EPS beats over the last 4 quarters, with its next earnings date set for October 21, 2026.

This page is an AI-written research summary of Healthcare Services Group, Inc. (HCSG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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