Our trade recommendation on Healthcare Services (USA Stocks:HCSG) based on the current fundamentals

HCSG Stock

USD 12.96 0.59 4.77%

Macroaxis Story

Healthcare Services Earnings Before Interest Taxes and Depreciation Amortization EBITDA are most likely to increase significantly in the upcoming years. The last year's value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA was reported at 57.66 Million. The current Earnings before Tax is estimated to increase to about 87.2 M, while Average Equity is projected to decrease to roughly 489.3 M. If you are looking to grow your portfolio over time, you may want to concentrate on all of the essential basic indicators of your selected equities before buying their shares. In this article, we will concentrate on Healthcare Services. I will address the reasons this entity was abused by stockholders resulted from the current market uncertainty. Will stockholders continue to hold, or should we expect a sell-off?

Published over a month ago

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Reviewed by Rifka Kats

Healthcare Services is OVERVALUED at 8.18 per share with modest projections ahead.

Healthcare Services holds Efficiency (Sharpe) Ratio of -0.0465, which attests that the entity had -0.0465% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in determining the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Healthcare Services exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out Healthcare Services risk adjusted performance of (0.010536), and Market Risk Adjusted Performance of (0.018736) to validate the risk estimate we provide.

Our trade recommendation on Healthcare Services (USA Stocks:HCSG) based on the current fundamentals

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Healthcare Services income statement, its balance sheet, and the statement of cash flows. Potential Healthcare Services investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Healthcare Services investors may use each financial statement separately, they are all related. The changes in Healthcare Services's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Healthcare Services's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

The goal of Healthcare Services fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Healthcare Services performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Healthcare Services shares is the value that is considered the true value of the share. If the intrinsic value of Healthcare is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Healthcare Services.

Please read more on our fundamental analysis page.

Are Healthcare Services Earnings Expected to grow?

The future earnings power of Healthcare Services involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Healthcare Services factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Healthcare Services stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Healthcare expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Healthcare Services earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Healthcare Services dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Healthcare one year expected dividend income is about USD0.56 per share.

Healthcare Services Dividend Yield is most likely to increase slightly in the upcoming years. The last year's value of Dividend Yield was reported at 0.07. The current Dividends per Basic Common Share is estimated to increase to 0.89, while Payment of Dividends and Other Cash Distributions is projected to decrease to (68.4 M).

	Last Reported	Projected for 2023
Payment of Dividends and Other Cash Distributions	-63.4 M	-68.4 M
Dividend Yield	0.07	0.08
Dividends per Basic Common Share	0.85	0.89

Investing in dividend-paying stocks, such as Healthcare Services Group is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Healthcare Services must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Healthcare Services. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How does Healthcare utilize its cash?

To perform a cash flow analysis of Healthcare Services, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Healthcare Services is receiving and how much cash it distributes out in a given period. The Healthcare Services cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Healthcare Services Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (8.17 Million)

Healthcare Services Gross Profit

Healthcare Services Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Healthcare Services previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Healthcare Services Gross Profit growth over the last 10 years.

Please check Gross Profit in more details.

Another Deeper Perspective

Institutional investors typically avoid acquiring a high percentage of Healthcare Services stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Healthcare is distributed among investors.

Ownership Allocation

Healthcare Services secures a total of 74.09 Million outstanding shares. The majority of Healthcare Services outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Healthcare Services to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Healthcare Services Group. Please pay attention to any change in the institutional holdings of Healthcare Services as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Institutions

99.26%

	Retail Investors	0.0
	Insiders	0.74
	Institutions	99.26

	2020	2021	2022	2023 (projected)
Consolidated Income	98.68 M	45.86 M	52.74 M	62.9 M
Direct Expenses	1.49 B	1.42 B	1.27 B	1.2 B

Consolidated Income Direct Expenses

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Healthcare Services has an asset utilization ratio of 211.18 percent. This implies that the company is making $2.11 for each dollar of assets. An increasing asset utilization means that Healthcare Services Group is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets

427.8 M

Assets Non Current

223.3 M

Current Assets	427.81 Million	53.78
Assets Non Current	223.32 Million	28.07
Goodwill	94.32 Million	11.86
Tax Assets	50.06 Million	6.29

Our take on Healthcare Services small drop

Healthcare Services current maximum drawdown boosts over 14.65. Healthcare Services Group exhibits very low volatility with skewness of 0.86 and kurtosis of 2.95. However, we advise investors to further study Healthcare Services Group technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Healthcare Services' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Healthcare Services' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Healthcare Services Investment

While some firms in the medical care facilities industry are either recovering or due for a correction, Healthcare Services may not be performing as strong as the other in terms of long-term growth potentials. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Healthcare Services.

Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Healthcare Services Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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