Healthcare Services GroupHCSG +4.24%73 Gross Margin % is 16.39% as of Mar. 2026, which is 25% above its 10-year median of 13.16. GuruFocus rates HCSG with a GF Score™ of 73/100 and a GF Value™ of $14.08 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 631 Healthcare Providers & Services companies, Healthcare Services Group ranks worse than 92.55% on this metric.
HCSG's Gross Margin % is ranked worse than 92.55% of 631
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs HCSG: 13.35
Healthcare Services Group had a gross margin of 16.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Healthcare Services Group (NAS:HCSG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Healthcare Services Group had a gross margin of 16.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Healthcare Services Group Gross Margin % Related Terms
Healthcare Services Group Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HCSG vs ARDT, AGL, AVAH: Gross Margin % Comparison
For the Medical Care Facilities subindustry, Healthcare Services Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Healthcare Services Group Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Healthcare Services Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Healthcare Services Group (HCSG) has a Gross Margin % of 16.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Healthcare Services Group and its competitors. This is 25% above median its historical median of 13.16. Over the past decade, Healthcare Services Group's Gross Margin % has ranged from 11.44 to 15.22. According to the industry distribution chart, Healthcare Services Group ranks #584 out of 631 companies in the Healthcare Providers & Services industry, placing it in the top 92.6%.
Is Healthcare Services Group's Gross Margin % too high?
Healthcare Services Group's current Gross Margin % of 16.39% is 25% above median its 10-year median of 13.16. Over the past 10 years, this metric has ranged from a low of 11.44 to a high of 15.22. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Healthcare Services Group's value of 16.39% is 59.1% below this industry median. Based on the distribution chart, Healthcare Services Group ranks #584 out of 631 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Healthcare Services Group has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Healthcare Services Group's Gross Margin % compare to ARDT and AGL?
According to the Healthcare Providers & Services industry distribution chart, Healthcare Services Group ranks #584 out of 631 companies for Gross Margin %. This places Healthcare Services Group in the lower half of its industry. The industry median Gross Margin % is 40.09. Healthcare Services Group's value of 16.39% is 59.1% below this benchmark. Historically, Healthcare Services Group's own Gross Margin % has ranged from 11.44 to 15.22 over the past decade. While the company's 10-year median is 13.16 vs. the industry median of 40.09, Healthcare Services Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Healthcare Services Group's current Gross Margin % of 16.39% is 59.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Healthcare Services Group and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Healthcare Services Group's current Gross Margin % is 16.39%, which is 25% above median its own 10-year median of 13.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Healthcare Services Group stock overvalued right now?
Based on GuruFocus' analysis, Healthcare Services Group (HCSG) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.08, compared to a current price of $23.58 — trading 67.5% above its estimated fair value. The current Gross Margin % is 16.39%, which is 25% above median its 10-year median of 13.16 and 59.1% below the Healthcare Providers & Services industry median of 40.09. Healthcare Services Group's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Healthcare Services Group (HCSG), the current Gross Margin % is 16.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Healthcare Services Group (HCSG) Overvalued in 2026?
Based on GuruFocus' analysis, Healthcare Services Group stock appears to be overvalued.
The current stock price of $23.58 is trading 67.5% above its estimated GF Value™ of $14.08.
GuruFocus considers Healthcare Services Group to be Significantly Overvalued.
Key valuation signals for HCSG:
Gross Margin %: 16.39% (25% above median its 10-year median of 13.16)
GF Value™: $14.08 vs. price of $23.58 (67.5% above fair value)
Industry Position: 59.1% below the Healthcare Providers & Services median (#584 of 631)
No single metric tells the full story. See the HCSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Healthcare Services Group Inc is a provider of housekeeping and facility management services to the healthcare industry. The company manages and evaluates its operations in two reportable segments: Environmental Services segment includes housekeeping, management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, bed linen, and uniform services, linen and other services; and Dietary Segment includes dietary department services, food purchasing, meal preparation, and providing dietitian consulting services. Its clients are nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America. The Environmental Services segment derives maximum revenue.
73GF Score
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