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


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


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:

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.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $27.09

Growth: 0.14

Current EPS (TTM): $0.78

P/E: 34

Future EPS Calc: $1.5

Future Stock Price Calc: $51.06

Target stock price: $31.7

I hope that this makes you a better investor. [/s2If]

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