Healthcare Services GroupHCSG +4.24%73 ROE % is 20.36% as of Mar. 2026, which is 56% above its 10-year median of 13.01. 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 628 Healthcare Providers & Services companies, Healthcare Services Group ranks better than 73.09% on this metric.
The historical rank and industry rank for Healthcare Services Group's ROE % or its related term are showing as below:
HCSG'
s ROE % Range Over the Past 10 Years
Min: 7.86 Med: 13.01 Max: 24.37
Current: 13.52
During the past 13 years, Healthcare Services Group's highest ROE % was 24.37%. The lowest was 7.86%. And the median was 13.01%.
HCSG's ROE % is ranked better than 73.09% of 628
companies
in the Healthcare Providers & Services industry
Industry Median: 5.72
vs HCSG: 13.52
Healthcare Services Group (NAS:HCSG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Medical Care Facilities subindustry, Healthcare Services Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's ROE % distribution charts can be found below:
* The bar in red indicates where Healthcare Services Group's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Healthcare Services Group (HCSG) has a ROE % of 20.36% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Healthcare Services Group and its competitors. This is 56% above median its historical median of 13.01. Over the past decade, Healthcare Services Group's ROE % has ranged from 7.86 to 24.37. According to the industry distribution chart, Healthcare Services Group ranks #169 out of 628 companies in the Healthcare Providers & Services industry, placing it in the top 26.9%.
Is Healthcare Services Group's ROE % too high?
Healthcare Services Group's current ROE % of 20.36% is 56% above median its 10-year median of 13.01. Over the past 10 years, this metric has ranged from a low of 7.86 to a high of 24.37. The Healthcare Providers & Services industry median ROE % is 5.72. Healthcare Services Group's value of 20.36% is 255.9% above this industry median. Based on the distribution chart, Healthcare Services Group ranks #169 out of 628 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. 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 ROE % compare to ARDT and AGL?
According to the Healthcare Providers & Services industry distribution chart, Healthcare Services Group ranks #169 out of 628 companies for ROE %. This puts Healthcare Services Group in the upper half of its industry. The industry median ROE % is 5.72. Healthcare Services Group's value of 20.36% is 255.9% above this benchmark. Historically, Healthcare Services Group's own ROE % has ranged from 7.86 to 24.37 over the past decade. While the company's 10-year median is 13.01 vs. the industry median of 5.72, 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 ROE % for a Healthcare Providers & Services company?
The median ROE % among Healthcare Providers & Services companies is 5.72, based on 628 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Healthcare Services Group's current ROE % of 20.36% is 255.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Healthcare Services Group and its competitors. For the Healthcare Providers & Services industry, the median ROE % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Healthcare Services Group's current ROE % is 20.36%, which is 56% above median its own 10-year median of 13.01. 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 ROE % is 20.36%, which is 56% above median its 10-year median of 13.01 and 255.9% above the Healthcare Providers & Services industry median of 5.72. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Healthcare Services Group (HCSG), the current ROE % is 20.36% 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:
ROE %: 20.36% (56% above median its 10-year median of 13.01)
GF Value™: $14.08 vs. price of $23.58 (67.5% above fair value)
Industry Position: 255.9% above the Healthcare Providers & Services median (#169 of 628)
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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