Stock fact sheet · data as of
Healthcare Services Group, Inc. (HCSG): fair value, margin of safety and Wheel Score
Healthcare · Medical - Care Facilities · United States · Value
Is HCSG undervalued?
Healthcare Services Group, Inc. (HCSG) closed at 21.43 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 45.20, which puts the price 53% below it. 4 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between DCF (14.04) and GLS Growth (108.60). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files HCSG under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for HCSG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 14.04 | -35% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 17.29 | -19% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 46.69 | +118% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 16.34 | -24% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 108.60 | +407% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 52.41 | +145% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 86.53 | +304% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 19.71 | -8% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 4.06 | -81% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 26.00 | +21% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Healthcare Services Group, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability HCSG scores 5.3/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 11.0%, ROE 11.6%, ROA 7.3% - with debt at 0.05 times equity and a free-cash-flow yield of 10.3%.
Healthcare Services Group, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Dietary Services 55%, Environmental Services 45% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 11.0% |
|---|---|---|---|
| GLS Moat | 5.3 / 10 | ROE | 11.6% |
| Debt / equity | 0.05 | ROA | 7.3% |
| Free-cash-flow yield | 10.3% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 82: Prime
With a Wheel Score of 82, Healthcare Services Group, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 18/20, Moat 8/15, Premium 19/20, Stability 13/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 66% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 438 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 522k shares a day on a market cap of $1.5B, with a beta of 0.81; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 53% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 8 / 15 | moat 5.3/10 | |
| Premium | 19 / 20 | implied volatility 66% | |
| Stability | 13 / 20 | 522k shares/day, $1.5B cap, beta 0.81 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Healthcare Services Group, Inc. reports earnings on 21 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Medical - Care Facilities
The 12 companies below are the closest to Healthcare Services Group, Inc. by market cap within the Medical - Care Facilities industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AGL Agilon Health, Inc. | 88.45 | - | - | 37Weak | $1.5B |
| PNTG The Pennant Group, Inc. | 40.82 | 26.64 | -53% | 51Fair | $1.4B |
| AMN AMN Healthcare Services, Inc. | 40.00 | 75.98 | +47% | 81Prime | $1.5B |
| NUTX Nutex Health, Inc. | 200.80 | 732.07 | +73% | 39No options | $1.4B |
| USPH U.S. Physical Therapy, Inc. | 84.91 | 50.56 | -68% | 45Weak | $1.3B |
| SNDA Sonida Senior Living, Inc. | 35.79 | 112.02 | +68% | 45Weak | $1.7B |
| ARDT Ardent Health Inc. | 12.20 | 28.12 | +57% | 80Prime | $1.7B |
| INNV Innovage Holding Corp. | 8.98 | 8.21 | -9% | 45Weak | $1.2B |
| ASTH Astrana Health, Inc. | 38.03 | 37.22 | -2% | 55Fair | $1.9B |
| SGRY Surgery Partners, Inc. | 14.83 | 46.26 | +68% | 45Weak | $1.9B |
| ADUS Addus HomeCare Corporation | 116.49 | 115.55 | -1% | 67Good | $2.2B |
| MD Pediatrix Medical Group, Inc. | 27.76 | 34.92 | +21% | 78Good | $2.3B |
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Start free See the Sunday ScanQuestions about HCSG
Is HCSG undervalued right now?
By the GLS models, yes: at 21.43 the stock is 53% below the average fair value of 45.20 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of HCSG and what does it mean?
HCSG scores 82 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for HCSG?
45.20 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Healthcare Services Group, Inc. report earnings next?
The next earnings report is due on 21 Oct 2026 (before the open), 5 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does HCSG have listed options, and how liquid are they?
Yes. The nightly snapshot found 82 listed contracts with 438 open interest across all expiries and implied volatility of 66% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.