HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM - Nasdaq - US42222N1037 - Common Stock
Overall HSTM gets a fundamental rating of 6 out of 10. We evaluated HSTM against 39 industry peers in the Health Care Technology industry. Both the health and profitability get an excellent rating, making HSTM a very profitable company, without any liquidiy or solvency issues. HSTM has a correct valuation and a medium growth rate. With these ratings, HSTM could be worth investigating further for quality investing!.
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
With an excellent Return On Assets value of 3.92%, HSTM belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
The Return On Equity of HSTM (5.54%) is better than 91.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.25%, HSTM belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HSTM is below the industry average of 6.36%.
The last Return On Invested Capital (4.25%) for HSTM is above the 3 year average (2.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.54% | ||
| ROIC | 4.25% |
ROA(3y)2.22%
ROA(5y)2.54%
ROE(3y)3.27%
ROE(5y)3.74%
ROIC(3y)2.54%
ROIC(5y)2.8%
1.3 Margins
The Profit Margin of HSTM (6.84%) is better than 89.19% of its industry peers.
In the last couple of years the Profit Margin of HSTM has declined.
HSTM has a better Operating Margin (7.24%) than 89.19% of its industry peers.
In the last couple of years the Operating Margin of HSTM has declined.
HSTM has a better Gross Margin (66.38%) than 62.16% of its industry peers.
In the last couple of years the Gross Margin of HSTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.24% | ||
| PM (TTM) | 6.84% | ||
| GM | 66.38% |
OM growth 3Y-3.83%
OM growth 5Y-3.02%
PM growth 3Y-1.82%
PM growth 5Y-17.08%
GM growth 3Y1.26%
GM growth 5Y2.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
Compared to 1 year ago, HSTM has less shares outstanding
The number of shares outstanding for HSTM has been reduced compared to 5 years ago.
HSTM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.03 indicates that HSTM is not in any danger for bankruptcy at the moment.
HSTM has a better Altman-Z score (5.03) than 78.38% 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 | 5.03 |
ROIC/WACC0.43
WACC9.82%
2.3 Liquidity
HSTM has a Current Ratio of 1.32. This is a normal value and indicates that HSTM is financially healthy and should not expect problems in meeting its short term obligations.
HSTM has a Current ratio of 1.32. This is comparable to the rest of the industry: HSTM outperforms 45.95% of its industry peers.
A Quick Ratio of 1.32 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM has a Quick ratio (1.32) which is comparable to the rest of the 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 | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.16% over the past year.
HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.55% yearly.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 3.96% in the last year.
HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
EPS 1Y (TTM)51.16%
EPS 3Y14.86%
EPS 5Y3.55%
EPS Q2Q%46.15%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.46%
Revenue growth 5Y3.8%
Sales Q2Q%3.92%
3.2 Future
The Earnings Per Share is expected to grow by 14.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.03% on average over the next years.
EPS Next Y31.38%
EPS Next 2Y17.03%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue Next Year3.77%
Revenue Next 2Y4.45%
Revenue Next 3Y5.16%
Revenue Next 5Y6.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 49.05 indicates a quite expensive valuation of HSTM.
Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 75.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.96. HSTM is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.55 indicates a quite expensive valuation of HSTM.
70.27% of the companies in the same industry are more expensive than HSTM, based on the Price/Forward Earnings ratio.
HSTM is valuated expensively when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.05 | ||
| Fwd PE | 46.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 89.19% 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 70.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.91 | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
HSTM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HSTM may justify a higher PE ratio.
HSTM's earnings are expected to grow with 14.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)13.82
EPS Next 2Y17.03%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 36.82, HSTM pays a better dividend. On top of this HSTM pays more dividend than 86.49% of the companies listed in the same industry.
With a Dividend Yield of 0.43, HSTM pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of HSTM decreases each year by -36.96%.
HSTM does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-36.96%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
16.79% of the earnings are spent on dividend by HSTM. This is a low number and sustainable payout ratio.
DP16.79%
EPS Next 2Y17.03%
EPS Next 3Y14.72%
HEALTHSTREAM INC
NASDAQ:HSTM (1/17/2025, 8:06:42 PM)
After market: 31.88 0 (0%)31.88
-0.05 (-0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners73.71%
Inst Owner Change0.08%
Ins Owners21.18%
Ins Owner Change-0.09%
Market Cap969.47M
Analysts76.67
Price Target33.15 (3.98%)
Short Float %3.47%
Short Ratio6.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.1
Dividend Growth(5Y)-36.96%
DP16.79%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.24%
Min EPS beat(2)15.66%
Max EPS beat(2)48.82%
EPS beat(4)4
Avg EPS beat(4)40.51%
Min EPS beat(4)15.66%
Max EPS beat(4)52.91%
EPS beat(8)8
Avg EPS beat(8)39.6%
EPS beat(12)12
Avg EPS beat(12)89.98%
EPS beat(16)15
Avg EPS beat(16)134.36%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)-2.55%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-0.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)0
Avg Revenue beat(12)-2.3%
Revenue beat(16)3
Avg Revenue beat(16)-0.84%
PT rev (1m)-1.52%
PT rev (3m)1.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.98%
EPS NY rev (1m)0%
EPS NY rev (3m)12.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.05 | ||
| Fwd PE | 46.55 | ||
| P/S | 3.37 | ||
| P/FCF | 29.91 | ||
| P/OCF | 16.07 | ||
| P/B | 2.73 | ||
| P/tB | 15.17 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)0.65
EY2.04%
EPS(NY)0.68
Fwd EY2.15%
FCF(TTM)1.07
FCFY3.34%
OCF(TTM)1.98
OCFY6.22%
SpS9.47
BVpS11.69
TBVpS2.1
PEG (NY)1.56
PEG (5Y)13.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.54% | ||
| ROCE | 5.32% | ||
| ROIC | 4.25% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 287.87% | ||
| OM | 7.24% | ||
| PM (TTM) | 6.84% | ||
| GM | 66.38% | ||
| FCFM | 11.25% |
ROA(3y)2.22%
ROA(5y)2.54%
ROE(3y)3.27%
ROE(5y)3.74%
ROIC(3y)2.54%
ROIC(5y)2.8%
ROICexc(3y)3.03%
ROICexc(5y)3.68%
ROICexgc(3y)69.42%
ROICexgc(5y)58.9%
ROCE(3y)3.18%
ROCE(5y)3.51%
ROICexcg growth 3Y40.93%
ROICexcg growth 5Y-24.92%
ROICexc growth 3Y2.98%
ROICexc growth 5Y-11.16%
OM growth 3Y-3.83%
OM growth 5Y-3.02%
PM growth 3Y-1.82%
PM growth 5Y-17.08%
GM growth 3Y1.26%
GM growth 5Y2.41%
F-Score9
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 67.55% | ||
| Cap/Sales | 9.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.03% | ||
| Profit Quality | 164.43% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 5.03 |
F-Score9
WACC9.82%
ROIC/WACC0.43
Cap/Depr(3y)67.73%
Cap/Depr(5y)79.29%
Cap/Sales(3y)9.77%
Cap/Sales(5y)10.27%
Profit Quality(3y)248.61%
Profit Quality(5y)210.28%
High Growth Momentum
Growth
EPS 1Y (TTM)51.16%
EPS 3Y14.86%
EPS 5Y3.55%
EPS Q2Q%46.15%
EPS Next Y31.38%
EPS Next 2Y17.03%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.46%
Revenue growth 5Y3.8%
Sales Q2Q%3.92%
Revenue Next Year3.77%
Revenue Next 2Y4.45%
Revenue Next 3Y5.16%
Revenue Next 5Y6.03%
EBIT growth 1Y40.52%
EBIT growth 3Y0.46%
EBIT growth 5Y0.66%
EBIT Next Year321.32%
EBIT Next 3Y67.54%
EBIT Next 5YN/A
FCF growth 1Y35.6%
FCF growth 3Y28.2%
FCF growth 5Y7.72%
OCF growth 1Y23.01%
OCF growth 3Y21.27%
OCF growth 5Y8.14%