Healthcare Services Group Inc (HCSG) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Healthcare Services Group Inc $14.41, price $21.25, upside -32.2%, quality 72 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $8.97 – $30.37 · fair‑value band $11.00 – $17.99 · the $21.25 price screens above the $14.41 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 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. The company operates in two segments, Environmental Services and Dietary.
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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. 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 $21.25, while our model-based Fair Value estimate is $14.41, implying the stock looks roughly 47.5% overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $22.03 per share, and 7 of the 24 models we run sit above the $21.25 price.
Bear case: the Asset-Based group reads lowest at $4.98, and 17 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: $11.00 (bear) to $17.99 (bull), the price of $21.25 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 72/100 (solid 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 $1.6B · P/E ratio 22.4 · P/S ratio 0.72 · EPS (TTM) $0.9500 · Net margin 3.2% · Return on equity 13.2% · Return on assets (EBIT) 6.7% · Operating margin 7.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 39 out of 100 (medium confidence).
What moves the price
The share trades about 16% below its 52-week high and 40% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at 35% fair-value upside, at −32%, HCSG screens richer than that median.
Fair Value models
Bear $11.00Fair Value $14.41Bull $17.99
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($0.6949 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.Evidence ⓘEvidence = 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.
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% vs 0%, 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%
Start year 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).
−1.1%
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.
+4.9%
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 −3.4% a year for the price and +2.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (95 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 · 257 stocks
Beats the industry median on 4/13 measures
Overall it trails its industry peers.
Valuation
Quality Score72 · Top 25%
Fair Value upside−32% · Below median
Profitability
Return on equity (TTM)13% · Above median
Return on assets5% · Above median
Net margin (TTM)4% · Below median
Operating margin (TTM)7% · Below median
Growth and dividend
Revenue growth3% · Below median
Valuation Multiplesvs Medical Care Facilities median · lower = cheaper
P/E (TTM)22.4× · Pricier than median
P/B3.04× · Priciest 25%
P/S (TTM)0.84× · Cheaper than median
P/FCF11.2× · Priciest 25%
EV/EBITDA20.5× · Priciest 25%
PEG2.39× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 33
FUTURE (revenue growth)17· sector 29
PAST (return on equity)53· sector 31
HEALTH (low debt)100· sector 89
DIVIDEND (yield)0· sector 42
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 Sep 23, 2026, our model estimates a fair value of $14.41 versus a price of $21.25, about −32% upside (overvalued).
What is the fair value of HCSG?
Our model-based fair value for Healthcare Services Group Inc is $14.41 (as of Sep 23, 2026), built from audited fundamentals. The current price: $21.25.
What is the quality score of HCSG?
Healthcare Services Group Inc has a Quality Score of 72/100. 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 $14.41 (as of Sep 23, 2026) from 24 valuation models. Cautious scenario $11.00, optimistic scenario $17.99. 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 $14.41, about −32% upside versus a price of $21.25 (overvalued). Cautious scenario $11.00, optimistic scenario $17.99. 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 Sep 23, 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 -1.1 % 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 Sep 23, 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 0.83, 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 -1.1 % per year a year over ten years, 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 -1.1 % per year free-cash-flow growth a 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 +4.7 % a year. That is the yardstick for the growth priced into Healthcare Services Group Inc (-1.1 % per year a 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 8.97 %: 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 $14.41 per share (as of Sep 23, 2026), against a price of $21.25. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Healthcare Services Group Inc stock overvalued or undervalued in 2026?
As of Sep 23, 2026, HCSG trades above its calculated fair value: price $21.25, fair value $14.41, a gap of about −32% (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 ($21.25); the fair value is what the company's own numbers justify ($14.41). For Healthcare Services Group Inc the two are $6.84 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 $1.6B (market capitalisation, as of Sep 23, 2026). Per share that is $21.25; our models calculate a fair value of $14.41 per share.
What do the bullish and bearish scenarios say about HCSG?
Our models span a range for Healthcare Services Group Inc: cautious scenario $11.00, base $14.41, optimistic $17.99 per share (as of Sep 23, 2026, price $21.25). 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 22.4 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $14.41 is built from several models across several years. Other multiples: PEG 2.4, P/B 3.0, P/S 0.8, EV/EBITDA 20.5.
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 Sep 23, 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 Sep 23, 2026): return on equity 13.2%. They feed the Quality Score of 72/100, which measures business quality independently of the share price.
How far is HCSG from its 52-week high?
Healthcare Services Group Inc trades at $21.25, about 16% below its 52-week high of $25.31 and 40% above the low of $15.18 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $14.41 is for.
Which stocks are comparable to Healthcare Services Group Inc?
From the same area (Healthcare) we also value HCA Healthcare, Inc, Fresenius SE, Dr. Sulaiman Al Habib Medical Services Group, IHH Healthcare Berhad, an investment holding company,, 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 Sep 23, 2026: price $21.25, calculated fair value $14.41 (−32%), Quality Score 72/100, 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 four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $14.41, 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 14.1 % 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 Sep 23, 2026 was $21.25. Our model-based fair value is $14.41, about −32% upside (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 72/100), 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 ($17.99). 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 $1.6B. 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 0.72 (P/E × margin). 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 $0.9500 (price ÷ EPS = P/E 22.4). 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 3.2% (fiscal year 2025). 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 13.2% (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 7.3% (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 +3.4% 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 +60.9% 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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Broad data
Sep 23, 2026