Latest Ratios: P/E Ratio 30.4x · EV/EBITDA 23.8x · ROE 11.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.7B | $1.4B | $860M | $771M | $892M | $1.3B | $2.1B | $1.8B | $3.0B | $3.9B | $2.9B |
| Enterprise Value | $1.6B | $1.3B | $791M | $760M | $899M | $1.3B | $2.0B | $1.8B | $3.0B | $3.9B | $2.9B |
| P/E Ratio → | 30.40 | 23.60 | 21.92 | 19.94 | 26.09 | 27.37 | 21.29 | 27.95 | 35.87 | 44.30 | 37.30 |
| P/S Ratio | 0.92 | 0.76 | 0.50 | 0.46 | 0.53 | 0.81 | 1.19 | 0.99 | 1.49 | 2.10 | 1.84 |
| P/B Ratio | 3.52 | 2.74 | 1.72 | 1.69 | 2.09 | 2.95 | 4.37 | 3.94 | 6.80 | 9.80 | 8.49 |
| P/FCF | 12.15 | 10.04 | 35.14 | 20.24 | — | 42.44 | 9.87 | 20.33 | 39.92 | 1755.32 | 80.04 |
| P/OCF | 11.66 | 9.63 | 27.91 | 17.72 | — | 35.94 | 9.67 | 19.38 | 37.46 | 513.71 | 69.52 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.69 | 0.46 | 0.45 | 0.53 | 0.78 | 1.12 | 0.99 | 1.49 | 2.11 | 1.83 |
| EV / EBITDA | 23.79 | 19.29 | 11.66 | 11.02 | 15.21 | 16.25 | 13.66 | 19.75 | 27.41 | 29.06 | 22.79 |
| EV / EBIT | 32.01 | 18.14 | 13.32 | 12.48 | 18.91 | 19.14 | 15.16 | 20.48 | 29.14 | 29.37 | 23.93 |
| EV / FCF | — | 9.05 | 32.33 | 19.96 | — | 40.76 | 9.30 | 20.33 | 39.98 | 1766.88 | 79.37 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 13.0% | 13.0% | 13.3% | 12.8% | 11.4% | 14.0% | 15.2% | 12.4% | 11.8% | 13.6% | 14.3% |
| Operating Margin | 2.6% | 2.6% | 3.1% | 3.3% | 2.6% | 3.9% | — | 4.2% | 5.0% | 6.8% | 7.5% |
| Net Profit Margin | 3.2% | 3.2% | 2.3% | 2.3% | 2.0% | 3.0% | 5.6% | 3.5% | 4.2% | 4.7% | 5.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.7% | 11.7% | 8.3% | 8.7% | 7.8% | 10.4% | 21.0% | 14.3% | 19.9% | 23.9% | 24.4% |
| ROA | 7.3% | 7.3% | 4.9% | 5.0% | 4.6% | 6.1% | 12.9% | 9.1% | 12.2% | 14.6% | 15.3% |
| ROIC | 9.0% | 9.0% | 9.1% | 9.3% | 7.9% | 12.7% | — | 12.9% | 17.3% | 25.7% | 30.5% |
| ROCE | 7.7% | 7.7% | 8.8% | 9.7% | 7.7% | 10.5% | — | 14.0% | 19.6% | 27.6% | 29.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.03 | 0.10 | 0.08 | 0.04 | 0.03 | 0.06 | 0.07 | 0.09 | — |
| Debt / EBITDA | 0.38 | 0.38 | 0.24 | 0.63 | 0.56 | 0.23 | 0.12 | 0.29 | 0.27 | 0.26 | — |
| Net Debt / Equity | — | -0.27 | -0.14 | -0.02 | 0.02 | -0.12 | -0.26 | -0.00 | 0.01 | 0.06 | -0.07 |
| Net Debt / EBITDA | -2.09 | -2.09 | -1.01 | -0.15 | 0.12 | -0.67 | -0.85 | -0.01 | 0.04 | 0.19 | -0.19 |
| Debt / FCF | — | -0.98 | -2.81 | -0.28 | — | -1.69 | -0.58 | -0.01 | 0.05 | 11.57 | -0.66 |
| Interest Coverage | 43.95 | 43.95 | 9.22 | 7.75 | 15.92 | 48.30 | 95.02 | 25.60 | 33.29 | 98.55 | — |
Net cash position: cash ($161M) exceeds total debt ($25M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.38 | 3.38 | 2.89 | 2.64 | 2.85 | 2.86 | 3.53 | 3.47 | 3.11 | 2.86 | 4.11 |
| Quick Ratio | 3.28 | 3.28 | 2.80 | 2.55 | 2.73 | 2.72 | 3.33 | 3.22 | 2.86 | 2.63 | 3.74 |
| Cash Ratio | 1.20 | 1.20 | 0.71 | 0.68 | 0.68 | 0.97 | 1.63 | 0.79 | 0.63 | 0.45 | 0.91 |
| Asset Turnover | — | 2.27 | 2.10 | 2.08 | 2.35 | 2.09 | 2.22 | 2.52 | 2.90 | 2.76 | 2.96 |
| Inventory Turnover | 95.12 | 95.12 | 88.82 | 78.83 | 70.73 | 54.25 | 47.25 | 44.17 | 42.76 | 38.04 | 35.44 |
| Days Sales Outstanding | — | 66.51 | 81.34 | 83.75 | 74.16 | 67.18 | 52.97 | 67.60 | 62.11 | 74.07 | 63.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | 7.1% | 4.7% | 2.9% | 3.2% | 1.9% | 1.4% | 1.9% |
| Payout Ratio | — | — | — | — | 185.1% | 128.2% | 61.5% | 91.3% | 68.5% | 62.6% | 68.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 4.2% | 4.6% | 5.0% | 3.8% | 3.7% | 4.7% | 3.6% | 2.8% | 2.3% | 2.7% |
| FCF Yield | 8.2% | 10.0% | 2.8% | 4.9% | — | 2.4% | 10.1% | 4.9% | 2.5% | 0.1% | 1.2% |
| Buyback Yield | 3.6% | 4.4% | 0.6% | 1.5% | 0.0% | 1.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.6% | 4.4% | 0.6% | 1.5% | 7.1% | 6.3% | 2.9% | 3.2% | 1.9% | 1.4% | 1.9% |
| Shares Outstanding | — | $73M | $74M | $74M | $74M | $75M | $75M | $75M | $75M | $74M | $73M |
Client credit and labor
Based on current market data, HCSG trades at a trailing P/E of 30.01, which appears elevated relative to its historical performance and the broader service sector, suggesting that investors are pricing in a recovery in profitability that remains inconsistent with recent quarterly earnings volatility.
The forward P/E of 22.46 implies an expectation of significant earnings expansion, yet this valuation seems disconnected from the structural margin pressures inherent in the SNF sector. Investors should monitor whether this premium is justified by potential operational efficiencies or if it represents an overvaluation of the company's defensive characteristics.
As reported in recent financial statements, HCSG's ROIC has fluctuated significantly, reaching 6.6% in 2026Q1 after a period of negative returns in 2025Q2, indicating that the company's ability to compound capital is heavily dependent on maintaining stable margins within its labor-intensive service model.
The erratic nature of these returns suggests that the company struggles to maintain a consistent competitive advantage in its core segments. The reliance on internal capital, while conservative, may be limiting the firm's ability to drive higher returns through strategic reinvestment or scale-based efficiencies.
According to quarterly filings, HCSG's cash conversion cycle remains elevated at 51 days as of 2026Q1, reflecting the persistent challenge of collecting receivables from a client base that is itself subject to significant regulatory and reimbursement-related financial pressures within the skilled nursing facility industry.
The DSO of 66 days highlights a structural dependency on client liquidity, which warrants close investigation as it directly impacts the company's cash flow quality. Any further extension in these cycles may indicate deteriorating credit health among key facility operators, potentially necessitating higher bad debt provisions.
Market participants frequently misapply top-line revenue growth as the primary indicator of HCSG's health, which obscures the reality that the company is essentially a credit-risk play on the solvency of regional skilled nursing facility operators rather than a traditional high-growth service provider.
Investors should prioritize the analysis of bad debt expense and the aging of accounts receivable over headline revenue figures to gauge true earning power. Relying on revenue growth alone ignores the potential for margin-dilutive contract expansion that does not translate into sustainable free cash flow.
Includes 30+ ratios · 30 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HCSG stock.
Healthcare Services Group, Inc.'s current P/E ratio is 30.4x. The historical average is 29.0x. This places it at the 57th percentile of its historical range.
Healthcare Services Group, Inc.'s current EV/EBITDA is 23.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.9x.
Healthcare Services Group, Inc.'s return on equity (ROE) is 11.7%. The historical average is 13.5%.
Based on historical data, Healthcare Services Group, Inc. is trading at a P/E of 30.4x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Healthcare Services Group, Inc. has 13.0% gross margin and 2.6% operating margin.
Healthcare Services Group, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.