HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
USA - NASDAQ:HSTM - US42222N1037 - Common Stock
25.45 USD
+0.94 (+3.84%)
25.45 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HSTM. HSTM was compared to 35 industry peers in the Health Care Technology industry. HSTM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HSTM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HSTM was profitable.
In the past year HSTM had a positive cash flow from operations.
Each year in the past 5 years HSTM has been profitable.
In the past 5 years HSTM always reported a positive cash flow from operatings.
1.2 Ratios
HSTM's Return On Assets of 4.14% is amongst the best of the industry. HSTM outperforms 94.29% of its industry peers.
HSTM's Return On Equity of 5.93% is amongst the best of the industry. HSTM outperforms 94.29% of its industry peers.
HSTM has a Return On Invested Capital of 4.73%. This is amongst the best in the industry. HSTM outperforms 82.86% of its industry peers.
HSTM had an Average Return On Invested Capital over the past 3 years of 3.49%. This is below the industry average of 6.84%.
The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 5.93% | ||
| ROIC | 4.73% |
ROA(3y)3.13%
ROA(5y)2.68%
ROE(3y)4.55%
ROE(5y)3.92%
ROIC(3y)3.49%
ROIC(5y)3.11%
1.3 Margins
HSTM has a Profit Margin of 6.93%. This is amongst the best in the industry. HSTM outperforms 91.43% of its industry peers.
In the last couple of years the Profit Margin of HSTM has grown nicely.
HSTM has a better Operating Margin (7.54%) than 82.86% of its industry peers.
In the last couple of years the Operating Margin of HSTM has grown nicely.
HSTM has a Gross Margin of 65.35%. This is in the better half of the industry: HSTM outperforms 62.86% of its industry peers.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.54% | ||
| PM (TTM) | 6.93% | ||
| GM | 65.35% |
OM growth 3Y32.25%
OM growth 5Y4.76%
PM growth 3Y44.8%
PM growth 5Y1.98%
GM growth 3Y0.96%
GM growth 5Y2.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
The number of shares outstanding for HSTM has been increased compared to 1 year ago.
Compared to 5 years ago, HSTM has less shares outstanding
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 4.06 indicates that HSTM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.06, HSTM is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.44
WACC10.7%
2.3 Liquidity
A Current Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM's Current ratio of 1.31 is on the low side compared to the rest of the industry. HSTM is outperformed by 74.29% of its industry peers.
A Quick Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, HSTM is doing worse than 74.29% of the companies in the same industry.
The current and quick ratio evaluation for HSTM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
HSTM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.62%.
The Earnings Per Share has been growing slightly by 7.96% on average over the past years.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 3.68% in the last year.
The Revenue has been growing slightly by 2.79% on average over the past years.
EPS 1Y (TTM)4.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%5.26%
Revenue 1Y (TTM)3.68%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%4.62%
3.2 Future
The Earnings Per Share is expected to grow by 7.80% on average over the next years.
HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.1%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.43, which means the current valuation is very expensive for 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.
HSTM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 33.18, the valuation of HSTM can be described as expensive.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
HSTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.43 | ||
| Fwd PE | 33.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.96 | ||
| EV/EBITDA | 9.09 |
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 excellent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)13.5
PEG (5Y)4.7
EPS Next 2Y7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.50%, which is pretty low.
Compared to an average industry Dividend Yield of 4.65, HSTM pays a better dividend. On top of this HSTM pays more dividend than 91.43% of the companies listed in the same industry.
With a Dividend Yield of 0.50, HSTM pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of HSTM is nicely growing with an annual growth rate of 126.03%!
HSTM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)126.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
17.69% of the earnings are spent on dividend by HSTM. This is a low number and sustainable payout ratio.
The dividend of HSTM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.69%
EPS Next 2Y7.8%
EPS Next 3YN/A
25.45
+0.94 (+3.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners76.66%
Inst Owner Change-2.9%
Ins Owners21.03%
Ins Owner Change0.53%
Market Cap754.34M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target34.68 (36.27%)
Short Float %4.17%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.69%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.27%
Min EPS beat(2)11.41%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)6.14%
Min EPS beat(4)-12.02%
Max EPS beat(4)13.12%
EPS beat(8)7
Avg EPS beat(8)23.32%
EPS beat(12)11
Avg EPS beat(12)28.45%
EPS beat(16)15
Avg EPS beat(16)69.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-0.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)0
Avg Revenue beat(12)-2.02%
Revenue beat(16)0
Avg Revenue beat(16)-2.2%
PT rev (1m)0%
PT rev (3m)-1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.66%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.43 | ||
| Fwd PE | 33.18 | ||
| P/S | 2.53 | ||
| P/FCF | 25.96 | ||
| P/OCF | 12.31 | ||
| P/B | 2.16 | ||
| P/tB | 11.34 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)0.68
EY2.67%
EPS(NY)0.77
Fwd EY3.01%
FCF(TTM)0.98
FCFY3.85%
OCF(TTM)2.07
OCFY8.12%
SpS10.07
BVpS11.78
TBVpS2.24
PEG (NY)13.5
PEG (5Y)4.7
Graham Number13.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 5.93% | ||
| ROCE | 5.81% | ||
| ROIC | 4.73% | ||
| ROICexc | 6.22% | ||
| ROICexgc | 150.89% | ||
| OM | 7.54% | ||
| PM (TTM) | 6.93% | ||
| GM | 65.35% | ||
| FCFM | 9.73% |
ROA(3y)3.13%
ROA(5y)2.68%
ROE(3y)4.55%
ROE(5y)3.92%
ROIC(3y)3.49%
ROIC(5y)3.11%
ROICexc(3y)4.37%
ROICexc(5y)3.79%
ROICexgc(3y)138.4%
ROICexgc(5y)96.34%
ROCE(3y)4.28%
ROCE(5y)3.82%
ROICexgc growth 3Y117.94%
ROICexgc growth 5Y39.14%
ROICexc growth 3Y43.44%
ROICexc growth 5Y0.56%
OM growth 3Y32.25%
OM growth 5Y4.76%
PM growth 3Y44.8%
PM growth 5Y1.98%
GM growth 3Y0.96%
GM growth 5Y2.36%
F-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 75.11% | ||
| Cap/Sales | 10.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.68% | ||
| Profit Quality | 140.41% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 4.06 |
F-Score7
WACC10.7%
ROIC/WACC0.44
Cap/Depr(3y)67.52%
Cap/Depr(5y)66.74%
Cap/Sales(3y)9.7%
Cap/Sales(5y)9.33%
Profit Quality(3y)199.85%
Profit Quality(5y)202.88%
High Growth Momentum
Growth
EPS 1Y (TTM)4.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%5.26%
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.68%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%4.62%
Revenue Next Year3.1%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
EBIT growth 1Y7.99%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year230.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.41%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y5.18%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%
HEALTHSTREAM INC / HSTM FAQ
What is the fundamental rating for HSTM stock?
ChartMill assigns a fundamental rating of 6 / 10 to HSTM.
What is the valuation status of HEALTHSTREAM INC (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 9 / 10.
What is the valuation of HEALTHSTREAM INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 37.43 and the Price/Book (PB) ratio is 2.16.
What is the expected EPS growth for HEALTHSTREAM INC (HSTM) stock?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 2.77% in the next year.