HEALTHSTREAM INC (HSTM) Fundamental Analysis & Valuation
NASDAQ:HSTM • US42222N1037
22.02 USD
-0.03 (-0.14%)
Last: Mar 5, 2026, 10:30 AM
This HSTM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall HSTM gets a fundamental rating of 5 out of 10. We evaluated HSTM against 35 industry peers in the Health Care Technology industry. While HSTM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HSTM has a decent growth rate and is not valued too expensively.
1. HSTM Profitability Analysis
1.1 Basic Checks
- In the past year HSTM was profitable.
- HSTM had a positive operating cash flow in the past year.
- HSTM had positive earnings in each of the past 5 years.
- Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.52%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 5.18%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- HSTM has a better Return On Invested Capital (4.08%) than 74.29% of its industry peers.
- HSTM had an Average Return On Invested Capital over the past 3 years of 3.91%. This is below the industry average of 7.01%.
- The 3 year average ROIC (3.91%) for HSTM is below the current ROIC(4.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 5.18% | ||
| ROIC | 4.08% |
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
1.3 Margins
- HSTM has a Profit Margin of 6.03%. This is amongst the best in the industry. HSTM outperforms 91.43% of its industry peers.
- HSTM's Profit Margin has been stable in the last couple of years.
- With a decent Operating Margin value of 6.65%, HSTM is doing good in the industry, outperforming 77.14% of the companies in the same industry.
- HSTM's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 64.74%, HSTM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- In the last couple of years the Gross Margin of HSTM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.65% | ||
| PM (TTM) | 6.03% | ||
| GM | 64.74% |
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
2. HSTM Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
- HSTM has less shares outstanding than it did 1 year ago.
- HSTM has less shares outstanding than it did 5 years ago.
- There is no outstanding debt for HSTM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 3.37 indicates that HSTM is not in any danger for bankruptcy at the moment.
- HSTM's Altman-Z score of 3.37 is fine compared to the rest of the industry. HSTM outperforms 77.14% of its industry peers.
- HSTM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.43
WACC9.53%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
- HSTM has a worse Current ratio (0.96) than 80.00% of its industry peers.
- A Quick Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
- HSTM has a Quick ratio of 0.96. This is amonst the worse of the industry: HSTM underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. HSTM Growth Analysis
3.1 Past
- HSTM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.06%.
- HSTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
- HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
- HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%
3.2 Future
- HSTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.94% yearly.
- The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y9.29%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.05%
Revenue Next 2Y6.47%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. HSTM Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 31.46 indicates a quite expensive valuation of HSTM.
- Compared to the rest of the industry, the Price/Earnings ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 71.43% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of HSTM to the average of the S&P500 Index (27.03), we can say HSTM is valued inline with the index average.
- HSTM is valuated quite expensively with a Price/Forward Earnings ratio of 28.78.
- HSTM's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.11. HSTM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.46 | ||
| Fwd PE | 28.78 |
4.2 Price Multiples
- 85.71% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.75 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)3.39
PEG (5Y)1.94
EPS Next 2Y11.94%
EPS Next 3YN/A
5. HSTM Dividend Analysis
5.1 Amount
- HSTM has a yearly dividend return of 0.59%, which is pretty low.
- HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.60. HSTM pays more dividend than 91.43% of the companies in the same industry.
- With a Dividend Yield of 0.59, HSTM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
- The dividend of HSTM is nicely growing with an annual growth rate of 148.87%!
- HSTM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)148.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 20.33% of the earnings are spent on dividend by HSTM. This is a low number and sustainable payout ratio.
- HSTM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.33%
EPS Next 2Y11.94%
EPS Next 3YN/A
HSTM Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:HSTM (3/5/2026, 10:30:37 AM)
22.02
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-23 2026-02-23/amc
Earnings (Next)05-04 2026-05-04
Inst Owners73.96%
Inst Owner Change-1.97%
Ins Owners18.69%
Ins Owner Change-22.14%
Market Cap646.51M
Revenue(TTM)304.06M
Net Income(TTM)18.34M
Analysts78.18
Price Target33.15 (50.54%)
Short Float %5.45%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.12
Dividend Growth(5Y)148.87%
DP20.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-09 2026-03-09 (0.035)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.92%
Min EPS beat(2)11.41%
Max EPS beat(2)60.43%
EPS beat(4)3
Avg EPS beat(4)18.24%
Min EPS beat(4)-12.02%
Max EPS beat(4)60.43%
EPS beat(8)7
Avg EPS beat(8)25.3%
EPS beat(12)11
Avg EPS beat(12)29.71%
EPS beat(16)15
Avg EPS beat(16)53.52%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)2.56%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)2.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.5%
Revenue beat(12)1
Avg Revenue beat(12)-1.71%
Revenue beat(16)1
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)-4.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-2.76%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.46 | ||
| Fwd PE | 28.78 | ||
| P/S | 2.13 | ||
| P/FCF | 20.75 | ||
| P/OCF | 10.21 | ||
| P/B | 1.83 | ||
| P/tB | 24.87 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)0.7
EY3.18%
EPS(NY)0.77
Fwd EY3.47%
FCF(TTM)1.06
FCFY4.82%
OCF(TTM)2.16
OCFY9.79%
SpS10.36
BVpS12.06
TBVpS0.89
PEG (NY)3.39
PEG (5Y)1.94
Graham Number13.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 5.18% | ||
| ROCE | 5.11% | ||
| ROIC | 4.08% | ||
| ROICexc | 4.76% | ||
| ROICexgc | 144.29% | ||
| OM | 6.65% | ||
| PM (TTM) | 6.03% | ||
| GM | 64.74% | ||
| FCFM | 10.25% |
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
ROICexc(3y)4.86%
ROICexc(5y)3.91%
ROICexgc(3y)162.5%
ROICexgc(5y)114.53%
ROCE(3y)4.9%
ROCE(5y)4.01%
ROICexgc growth 3Y31.22%
ROICexgc growth 5Y26.84%
ROICexc growth 3Y16.25%
ROICexc growth 5Y4.77%
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 73.98% | ||
| Cap/Sales | 10.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.38% | ||
| Profit Quality | 169.86% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.37 |
F-Score6
WACC9.53%
ROIC/WACC0.43
Cap/Depr(3y)70.13%
Cap/Depr(5y)69.08%
Cap/Sales(3y)10.09%
Cap/Sales(5y)9.91%
Profit Quality(3y)184.6%
Profit Quality(5y)212.64%
High Growth Momentum
Growth
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
EPS Next Y9.29%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%
Revenue Next Year8.05%
Revenue Next 2Y6.47%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%
EBIT growth 1Y-4.95%
EBIT growth 3Y17.73%
EBIT growth 5Y5.07%
EBIT Next Year266.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.55%
FCF growth 3Y6.09%
FCF growth 5Y12.79%
OCF growth 1Y9.81%
OCF growth 3Y7.35%
OCF growth 5Y12.04%
HEALTHSTREAM INC / HSTM FAQ
What is the fundamental rating for HSTM stock?
ChartMill assigns a fundamental rating of 5 / 10 to HSTM.
What is the valuation status for HSTM stock?
ChartMill assigns a valuation rating of 4 / 10 to HEALTHSTREAM INC (HSTM). This can be considered as Fairly Valued.
What is the profitability of HSTM stock?
HEALTHSTREAM INC (HSTM) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 31.46 and the Price/Book (PB) ratio is 1.83.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 9.29% in the next year.