Stock analysis · Bull Rankings model

HCSG analysis

Healthcare Services Group, Inc.Medical Care Facilities. Scored on the same transparent model behind the daily rankings.

HCSG
Healthcare Services Group, Inc. · Medical Care Facilities
FCF$149mC
Rev+5.2%C+
D/E0.03A-
P/E13.9xA-
PEG1.36B
56.3Score
$23.43$1.6B
1Y Target$26.80Analyst consensus · 5 analysts
5Y Target$33.83Compound horizon
10Y Target$43.39Long-dated conviction
FCF$149mTTM
C
FCF $149m — modest; watch for margin expansion
Rev+5.2%TTM YoY
C+
Revenue +5.2% — steady but below market-beating range
D/E0.03
A-
D/E 0.03 — less debt than most Healthcare peers (≈25th pctile)
P/E13.9x
A-
P/E 13.9 — cheaper than most Healthcare peers (≈25th pctile)
PEG1.36
B
PEG 1.36 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 56.3
Quality0.80
Growth0.29
Value0.77
Why this score
  • Buying back stock
  • Short track record
Entry · Margin of safety
52-week rangeNear 52-week high
9% off the 12-month high
vs DCF fair value38% belowest. fair value ~$38
What the price assumes: free cash flow compounding at ~-8% a year for the next decade — vs the ~3% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability39% · B+gross profit ÷ total assets (Novy-Marx)
Why now
Medical Care Facilities · market cap $1.6b. 9% off the 52-week high of $25.75. 5 sell-side analysts rate this a Buy with a mean 1-yr target of $26.80 (implying +14% upside).
Moat
ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 121% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon
1-3 yr $26.80 (5-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $33.83 at ~8% CAGR — dividend + buyback compounding. 10 yr $43.39 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
-9.3 over 31 daily scores
From 65.6 (Jun 22) → 56.3 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
85
Position size
$1,992
4.0% of portfolio
Stop price
$17.57
25% below $23.43
$ at risk if stopped
$497.89
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Healthcare Services Group, Inc. (HCSG): score, valuation & FAQ

Healthcare Services Group, Inc. (HCSG) is a Medical Care Facilities company that scores 56.3 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-) and P/E (A-). On valuation, HCSG sits about 38% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade.

Is HCSG a good stock to buy?

Bull Rankings scores HCSG 56.3 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A-) and P/E (A-). A score is a quantitative screen of Healthcare Services Group, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does HCSG score 56.3 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). HCSG earns its highest marks on D/E (A-) and P/E (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is HCSG overvalued or undervalued?

Based on $23.43, HCSG sits about 38% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade. It trades at a 13.9x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in HCSG?

Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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