Healthcare Services Group, Inc. ($HCSG) Cautious Buy or Hold to $30 Confident Investor Rating: Fair

Company name Healthcare Services Group, Inc.
Stock ticker HCSG
Live stock price [stckqut]HCSG[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $30.41
Target stock price (averages with growth) $37.56
Target stock price (averages with no growth) $28.59
Target stock price (manual assumptions) $31.71

The following company description is from Google Finance: http://www.google.com/finance?q=hcsg

Healthcare Services Group, Inc. provides management, administrative and operating services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. The Company operates in two segments: housekeeping, laundry, linen and other services (Housekeeping), and dietary department services (Dietary).As of December 31, 2011, the Company provided its Housekeeping services to approximately 2,900 facilities and provided Dietary services to approximately 600 facilities. As of December 31, 2011, the Company operated two wholly owned subsidiaries, Huntingdon Holdings, Inc. (Huntingdon) and Healthcare Staff Leasing Solutions, LLC (Staff Leasing).

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Healthcare Services Group, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

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