Company valuation · Healthcare
HCSG: Hold with a $21.54 price target
Healthcare Services Group Inc. The company returned to profit, but less cash remains for each dollar of profit.
- Model target · USD
- $21.54 For 2027-09-17
- Model rating
- Hold Reviewed 2026-09-17
- Reference weekly close
- $21.98 2026-09-11 · USD
Investment view
The company returned to profit, but less cash remains for each dollar of profit.
Target and reference price
Target for 2027-09-17: $21.54 USD, -2.0% versus the $21.98 weekly close on 2026-09-11. Price return only; dividends, fees and tax excluded.
Price and earnings
Over 1 year (2025-09-12 to 2026-09-11), price changed +37.2% and trailing EPS changed +1119.0%. A wider gap changes the earnings multiple; it does not establish fair value.
Supporting evidence
Net income was 22.7m, compared with -32.4m in the same quarter last year. Amounts are in USD.
Net debt / EBITDA: -1.0× for HCSG, against 2.8× across 12 comparable peers.
Risks to the case
Cash after capital spending / profit: 1.2× for HCSG, against 2.7× across 6 comparable peers.
What to monitor
Compare the next results with the trailing margin of 7.0% and the annual-history median of 3.1%. A historical median is context, not a forecast.
The latest quarterly margin changed +13.8 percentage points from a year earlier. Check sales volumes, pricing and unusual gains in the next filing.
Recheck the valuation gap alongside profitability and growth after new results. A discount alone does not establish value.
Valuation assumptions
Starting annual sales growth: 4.98%.
Net profit margin: 4.45%.
About this assessment
Review recorded on 2026-09-17. This is a dated summary of an automated company valuation. The full report includes the financial evidence, alternative scenarios and review history. Consult the latest report before using an earlier target. Automated model research, not personal investment advice. Targets depend on assumptions; returns are not guaranteed.