Healthcare Services GroupFRA:HS1 -2.54%73 Operating Margin % is 6.97% as of Mar. 2026, which is 71% above its 10-year median of 4.07. GuruFocus rates FRA:HS1 with a GF Score™ of 73/100 and a GF Value™ of €11.94. The stock has 5 warning signs investors should review. Among 668 Healthcare Providers & Services companies, Healthcare Services Group ranks worse than 56.14% on this metric.
Healthcare Services Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -13%.
The historical rank and industry rank for Healthcare Services Group's Operating Margin % or its related term are showing as below:
FRA:HS1'
s Operating Margin % Range Over the Past 10 Years
Min: 2.59 Med: 4.07 Max: 7.63
Current: 3.59
FRA:HS1's Operating Margin % is ranked worse than 56.14% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 4.845
vs FRA:HS1: 3.59
Healthcare Services Group (FRA:HS1) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Healthcare Services Group Operating Margin % Related Terms
Healthcare Services Group Operating 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.
Healthcare Services Group Operating Margin % Chart
FRA:HS1 vs ARDT, AGL, AVAH: Operating Margin % Comparison
For the Medical Care Facilities subindustry, Healthcare Services Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Healthcare Services Group's Operating Margin % falls into.
Healthcare Services Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Healthcare Services Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Healthcare Services Group (FRA:HS1) has a Operating Margin % of 6.97% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Healthcare Services Group and its competitors. This is 71% above median its historical median of 4.07. Over the past decade, Healthcare Services Group's Operating Margin % has ranged from 2.59 to 7.63. According to the industry distribution chart, Healthcare Services Group ranks #375 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 56.1%.
Is Healthcare Services Group's Operating Margin % too high?
Healthcare Services Group's current Operating Margin % of 6.97% is 71% above median its 10-year median of 4.07. Over the past 10 years, this metric has ranged from a low of 2.59 to a high of 7.63. The Healthcare Providers & Services industry median Operating Margin % is 4.85. Healthcare Services Group's value of 6.97% is 43.9% above this industry median. Based on the distribution chart, Healthcare Services Group ranks #375 out of 668 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Healthcare Services Group has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Healthcare Services Group's Operating Margin % compare to ARDT and AGL?
According to the Healthcare Providers & Services industry distribution chart, Healthcare Services Group ranks #375 out of 668 companies for Operating Margin %. This places Healthcare Services Group in the lower half of its industry. The industry median Operating Margin % is 4.85. Healthcare Services Group's value of 6.97% is 43.9% above this benchmark. Historically, Healthcare Services Group's own Operating Margin % has ranged from 2.59 to 7.63 over the past decade. While the company's 10-year median is 4.07 vs. the industry median of 4.85, Healthcare Services Group has consistently been above 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 Operating Margin % for a Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 4.85, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Healthcare Services Group's current Operating Margin % of 6.97% is 43.9% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Healthcare Services Group and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Healthcare Services Group's current Operating Margin % is 6.97%, which is 71% above median its own 10-year median of 4.07. 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?
Healthcare Services Group (FRA:HS1) has a current Operating Margin % of 6.97%. The stock's GF Value™ is €11.94, compared to a current price of €19.20 — trading 60.8% above its estimated fair value. The current Operating Margin % is 6.97%, which is 71% above median its 10-year median of 4.07 and 43.9% above the Healthcare Providers & Services industry median of 4.85. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Healthcare Services Group (FRA:HS1), the current Operating Margin % is 6.97% 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 (FRA:HS1) Overvalued in 2026?
Based on GuruFocus' analysis, Healthcare Services Group stock appears to be overvalued.
The current stock price of €19.20 is trading 60.8% above its estimated GF Value™ of €11.94.
Key valuation signals for FRA:HS1:
Operating Margin %: 6.97% (71% above median its 10-year median of 4.07)
GF Value™: €11.94 vs. price of €19.20 (60.8% above fair value)
Industry Position: 43.9% above the Healthcare Providers & Services median (#375 of 668)
No single metric tells the full story. See the FRA:HS1 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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