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Attractive stocks have exceptional fundamentals. In the case of Healthcare Services Group, Inc. (NASDAQ:HCSG), there's is a financially-robust , dividend-paying company with an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Healthcare Services Group here.
Excellent balance sheet with solid track record and pays a dividend
HCSG delivered a bottom-line expansion of 40% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is what investors like to see! HCSG's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that HCSG has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. HCSG appears to have made good use of debt, producing operating cash levels of 2.46x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
HCSG is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Healthcare Services Group, there are three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for HCSG’s future growth? Take a look at our free research report of analyst consensus for HCSG’s outlook.
- Valuation: What is HCSG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HCSG is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HCSG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.