Is HEALTHCARE SERVICES GROUP INC (HCSG) Halal?

NASDAQ Healthcare United States $1.3B
✓ HALAL
Confidence: 95/100
HEALTHCARE SERVICES GROUP INC (HCSG) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.7% against the AAOIFI threshold of 30%, HEALTHCARE SERVICES GROUP INC comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Medical Care Facilities), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.7%
/ 30%
11.5%
/ 30%
23.0%
/ 30%
0.74%
/ 5%
✓ HALAL
DJIM 0.7%
/ 33%
11.5%
/ 33%
23.0%
/ 33%
0.74%
/ 5%
✓ HALAL
MSCI 1.2%
/ 33%
21.1%
/ 33%
42.2%
/ 33%
0.74%
/ 5%
✗ NOT HALAL
S&P 0.7%
/ 33%
11.5%
/ 33%
23.0%
/ 33%
0.74%
/ 5%
✓ HALAL
FTSE 1.2%
/ 33%
21.1%
/ 33%
42.2%
/ 50%
0.74%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
22.8
Forward: 16.8
EPS
$0.81
P/B Ratio
2.5
EV/EBITDA
20.1
EV: $1.1B
Revenue
$1.8B
Growth: 6.6%
Beta
0.8
Low volatility
Current Ratio
3.4

Profitability

Gross Margin 13.0%
Operating Margin 5.5%
Net Margin 3.2%
Return on Equity (ROE) 11.7%
Return on Assets (ROA) 3.8%

Cash Flow & Balance Sheet

Operating Cash Flow$145M
Free Cash Flow$139M
Total Debt$10M
Debt-to-Equity2.9
Current Ratio3.4
Total Assets$794M

Price & Trading

Last Close$19.11
50-Day MA$19.95
200-Day MA$17.31
Avg Volume754K
Beta0.8
52-Week Range
$9.13
$22.98

About HEALTHCARE SERVICES GROUP INC (HCSG)

CEO
Mr. Theodore Wahl CPA
Employees
36,000
Sector
Healthcare
Industry
Medical Care Facilities
Country
United States
Exchange
NASDAQ
Market Cap
$1.3B
Currency
USD

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. The company operates in two segments, Environmental Services and Dietary. Its Environmental Services segment engages in cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment is involved in the management of the customers' dietary departments, which focus on food purchasing, meal preparation, and professional dietitian services, such as the development of menus that meet the dietary needs of residents; and the provision of on-site management and clinical consulting services. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is headquartered in Bensalem, Pennsylvania.

Purification Calculator

As a halal stock with 0.74% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is HEALTHCARE SERVICES GROUP INC (HCSG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), HEALTHCARE SERVICES GROUP INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is HEALTHCARE SERVICES GROUP INC's debt ratio?

HEALTHCARE SERVICES GROUP INC's debt ratio is 0.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.2%.

Does HEALTHCARE SERVICES GROUP INC require dividend purification?

Yes, HEALTHCARE SERVICES GROUP INC has an impermissible income ratio of 0.74%, which means 0.74% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are HEALTHCARE SERVICES GROUP INC's key financial metrics?

HEALTHCARE SERVICES GROUP INC has a market capitalization of $1.3B, trailing P/E ratio of 22.8, and revenue of $1.8B. The company maintains a gross margin of 13.0% and a net margin of 3.2%. Return on equity stands at 11.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.