Healthcare Services Profitability Analysis
| HCSG Stock | USD 11.19 0.17 1.50% |
For Healthcare Services profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Healthcare Services to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Healthcare Services Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Healthcare Services's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Healthcare Services Group over time as well as its relative position and ranking within its peers.
Healthcare |
Is Healthcare space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Healthcare Services. If investors know Healthcare will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Healthcare Services listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Healthcare Services is measured differently than its book value, which is the value of Healthcare that is recorded on the company's balance sheet. Investors also form their own opinion of Healthcare Services' value that differs from its market value or its book value, called intrinsic value, which is Healthcare Services' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Healthcare Services' market value can be influenced by many factors that don't directly affect Healthcare Services' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Healthcare Services' value and its price as these two are different measures arrived at by different means. Investors typically determine if Healthcare Services is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Healthcare Services' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Healthcare Services Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Healthcare Services's current stock value. Our valuation model uses many indicators to compare Healthcare Services value to that of its competitors to determine the firm's financial worth. Healthcare Services Group is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about 0.44 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Healthcare Services Group is roughly 2.29 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Healthcare Services by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Healthcare Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Healthcare Services |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Healthcare Services |
| = | 0.048 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Healthcare Return On Asset Comparison
Healthcare Services is currently under evaluation in return on asset category among its peers.
Healthcare Services Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Healthcare Services, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Healthcare Services will eventually generate negative long term returns. The profitability progress is the general direction of Healthcare Services' change in net profit over the period of time. It can combine multiple indicators of Healthcare Services, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. Healthcare Services Group, Inc. was incorporated in 1976 and is based in Bensalem, Pennsylvania. Healthcare Svcs operates under Medical Care Facilities classification in the United States and is traded on NASDAQ Exchange. It employs 200 people.
Healthcare Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Healthcare Services. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Healthcare Services position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Healthcare Services' important profitability drivers and their relationship over time.
Healthcare Services Profitability Trends
Healthcare Services profitability trend refers to the progression of profit or loss within a business. An upward trend means that Healthcare Services' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Healthcare Services' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
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Check out Risk vs Return Analysis. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project Healthcare Services' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Healthcare Services at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Healthcare Services' income statement, its balance sheet, and the statement of cash flows.