Healthcare Services Group Inc (HCSG) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Healthcare Services Group Inc stock $14.89, price $24.28, that is 38.7% below the price, quality 75 out of 100. Rating: strongly overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $8.97 – $26.54 · fair‑value band $11.51 – $18.61 · the $24.28 price screens above the $14.89 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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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.
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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.
Stock analysis
Healthcare Services Group Inc (HCSG) currently trades at $24.28, while our model-based Fair Value estimate is $14.89, 39% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $26.71 per share, and 6 of the 24 models we run sit above the $24.28 price.
Bear case: the Asset-Based group reads lowest at $4.14, and 18 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $11.51 (bear) to $18.61 (bull), the price of $24.28 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 75/100 (high quality), in the Healthcare sector.
Weak Growth: Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Healthcare Services Group Inc reported revenue of $1.8B in FY2025 versus $1.6B in FY2021, a compound +2.8%/yr. Reported net income was $59.1M in FY2025, compounding +5.0%/yr from FY2021.
Key figures
Market cap $1.7B Small · P/E ratio 16.4 · P/S ratio 0.91 · EPS (TTM) $1.48 · Net margin 5.6% · Return on equity 20.4% · Return on assets (EBIT) 6.7% (5-year average) · Operating margin 6.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (medium confidence).
What moves the price
The share trades about 9% below its 52-week high and 43% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −1% fair-value upside, at −39%, HCSG screens richer than that median.
Fair Value models
Bear$11.51Fair Value $14.89Bull$18.61
Price $24.28 · Downside -38.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($1.27 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
SaleAndrew M BrophySVP & Chief Accounting Officer2,490 shares at $21.75$54,158Feb 26, 202610b5-1 plan
SalePatrick J OrrEVP & Chief Revenue Officer2× since Feb 18, 2026: 90,115 shares, avg. $20.53$1.9MFeb 18, 2026
SaleJohn Christopher SheaEVP & Chief Admin. Officer54,357 shares at $20.41$1.1MFeb 18, 2026
Plus 16 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Revenue growth 1 year
+7.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.9%
Start year 2020 (pandemic). Over 10 years: +2.5% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis.
≈ −8.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year−8.6%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−1.4% vs 0.1%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.6% → 3%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Rate on operating basis: 2025 sits 57% above its own trend.
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+0.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+8.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −1.5% a year for the price and +6.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (93 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Compare Healthcare Services Group Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Medical Care Facilities · 234 stocks
Beats the industry median on 6/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score75 · Top 25%
Fair Value upside−38.7% · Bottom 25%
Profitability
Return on equity (12 months)20.4% · Top 25%
Return on assets7.3% · Above median
Net margin (12 months)5.6% · Below median
Operating margin (12 months)6.7% · Below median
Growth and dividend
Revenue growth (quarter YoY)3.3% · Below median
Valuation Multiplesvs Medical Care Facilities median · lower = cheaper
P/E (12 months)16.4× · Cheaper than median
P/B3.35× · Pricier than median
P/S (12 months)0.91× · Cheaper than median
Price / free cash flow (fiscal year)12.3× · Cheaper than median
EV/EBITDA12.7× · Pricier than median
PEG2.39× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 34
FUTURE (revenue growth)17· sector 31
PAST (return on equity)82· sector 32
HEALTH (low debt)100· sector 90
DIVIDEND (yield)0· sector 39
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Healthcare Services Group Inc Fair Value". https://www.fairvalue-calculator.com/stock/HCSG
Frequently asked questions
Is Healthcare Services Group Inc (HCSG) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $14.89 versus a price of $24.28, about 39% lower (overvalued).
What is the fair value of HCSG?
Our model-based fair value for Healthcare Services Group Inc is $14.89 (as of Nov 7, 2026), built from audited fundamentals. The current price: $24.28.
What is the quality score of HCSG?
Healthcare Services Group Inc has a Quality Score of 75/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Healthcare Services Group Inc (HCSG)?
Our model-based price target is the fair value of $14.89 (as of Nov 7, 2026) from 24 valuation models. Cautious scenario $11.51, optimistic scenario $18.61. It is a calculation from audited fundamentals, not an analyst target.
What is the Healthcare Services Group Inc stock forecast for 2026?
Our models put fair value at $14.89, about 39% lower versus a price of $24.28 (overvalued). Cautious scenario $11.51, optimistic scenario $18.61. The calculation is refreshed regularly with new filings.
What is the revenue of Healthcare Services Group Inc (HCSG)?
Healthcare Services Group Inc reported trailing-twelve-month revenue of about $1.9B (latest available figure, as of Nov 7, 2026).
What growth is priced into Healthcare Services Group Inc (HCSG)?
For today's price to be fair in a discounted-cash-flow model, Healthcare Services Group Inc would have to grow free cash flow by +0.9 % per year for five years (discount rate 10.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.9 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of HCSG use?
Our models discount Healthcare Services Group Inc at 10.7 %: a base by market capitalisation (small), damped by beta 0.81, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Healthcare Services Group Inc that is +0.9 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.7 %) and the same formula as our fair value.
How much growth has Healthcare Services Group Inc (HCSG) delivered so far?
Over the past 5 years revenue at Healthcare Services Group Inc grew +0.9 % a year. The price currently implies free-cash-flow growth of +0.9 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Healthcare Services Group Inc (HCSG) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Healthcare Services Group Inc (+0.9 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Healthcare Services Group Inc (HCSG)?
The free-cash-flow yield on the price is 8.13 %: that much free cash flow Healthcare Services Group Inc produces per unit of market value. When it exceeds the discount rate of our models (10.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Healthcare Services Group Inc (HCSG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Healthcare Services Group Inc it is $14.89 per share (as of Nov 7, 2026), against a price of $24.28. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Healthcare Services Group Inc stock overvalued or undervalued in 2026?
As of Nov 7, 2026, HCSG trades above its calculated fair value: price $24.28, fair value $14.89, a gap of about −39% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HCSG?
No. The price is what the market pays today ($24.28); the fair value is what the company's own numbers justify ($14.89). For Healthcare Services Group Inc the two are $9.39 per share apart. That gap is exactly why we show both numbers side by side.
How much is Healthcare Services Group Inc worth?
The market values Healthcare Services Group Inc at about $1.7B (market capitalisation, as of Nov 7, 2026). Per share that is $24.28; our models calculate a fair value of $14.89 per share.
What do the bullish and bearish scenarios say about HCSG?
Our models span a range for Healthcare Services Group Inc: cautious scenario $11.51, base $14.89, optimistic $18.61 per share (as of Nov 7, 2026, price $24.28). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HCSG?
Healthcare Services Group Inc trades at a price-to-earnings ratio of 16.4 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $14.89 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 26.8. Other multiples: PEG 2.4, P/B 3.4, P/S 0.9, EV/EBITDA 12.7.
What is the PEG ratio of HCSG?
The PEG ratio of Healthcare Services Group Inc is 2.39 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Healthcare Services Group Inc (HCSG)?
Balance-sheet figures for Healthcare Services Group Inc (as of Nov 7, 2026): return on equity 20.4%. They feed the Quality Score of 75/100, which measures business quality independently of the share price.
How far is HCSG from its 52-week high?
Healthcare Services Group Inc trades at $24.28, about 9% below its 52-week high of $26.54 and 43% above the low of $17.02 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $14.89 is for.
Which stocks are comparable to Healthcare Services Group Inc?
From the same area (Healthcare) we also value HCA Healthcare, Inc, Fresenius SE, Tenet Healthcare Corporation, Dr. Sulaiman Al Habib Medical Services Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Healthcare Services Group Inc stock attractive at the current price?
The data as of Nov 7, 2026: price $24.28, calculated fair value $14.89 (−39%), Quality Score 75/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HCSG calculated?
We run Healthcare Services Group Inc through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $14.89 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Healthcare Services Group Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Healthcare Services Group Inc (HCSG)?
The closing price on Nov 6, 2026 was $24.28. Our model-based fair value is $14.89, about 39% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Healthcare Services Group Inc right now?
A high-quality business (quality 75/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($18.61). The favourable scenario is already priced in.
Where does the earnings growth of Healthcare Services Group Inc (HCSG) come from?
Earnings per share at Healthcare Services Group Inc grew −1.7 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.0 %, EBIT margin −6.6 %, tax rate +2.2 %, residual (interest, one-offs) +0.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Healthcare Services Group Inc
How large is the market capitalisation of Healthcare Services Group Inc (HCSG)?
The market capitalisation of Healthcare Services Group Inc is $1.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Healthcare Services Group Inc (HCSG)?
The price-to-sales ratio of Healthcare Services Group Inc is 0.91 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Healthcare Services Group Inc (HCSG)?
Earnings per share at Healthcare Services Group Inc are $1.48 (price ÷ EPS = P/E 16.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Healthcare Services Group Inc (HCSG)?
The net margin of Healthcare Services Group Inc is 5.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Healthcare Services Group Inc (HCSG)?
The return on equity (ROE) of Healthcare Services Group Inc is 20.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Healthcare Services Group Inc (HCSG)?
On an EBIT basis the return on assets of Healthcare Services Group Inc is 6.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Healthcare Services Group Inc (HCSG)?
The operating margin of Healthcare Services Group Inc is 6.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Healthcare Services Group Inc (HCSG)?
Revenue at Healthcare Services Group Inc is growing +3.3% versus a year earlier (3y avg +2.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Healthcare Services Group Inc (HCSG)?
Earnings per share at Healthcare Services Group Inc are growing −39.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Healthcare Services Group Inc (HCSG) hold?
Healthcare Services Group Inc holds more cash than debt, $136M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Nov 7, 2026