19.98 USD
-0.01 (-0.05%)
Last: Feb 10, 2026, 02:49 PM
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
- HSTM had positive earnings in the past year.
- In the past year HSTM had a positive cash flow from operations.
- HSTM had positive earnings in each of the past 5 years.
- HSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.14%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- HSTM has a better Return On Equity (5.93%) than 94.29% of its industry peers.
- HSTM has a Return On Invested Capital of 4.73%. This is in the better half of the industry: HSTM outperforms 77.14% 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 6.63%.
- The last Return On Invested Capital (4.73%) for HSTM is above the 3 year average (3.49%), which is a sign of increasing profitability.
| 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.
- HSTM's Profit Margin has improved in the last couple of years.
- HSTM has a better Operating Margin (7.54%) than 80.00% of its industry peers.
- HSTM's Operating Margin has improved in the last couple of years.
- HSTM has a Gross Margin (65.35%) which is comparable to the rest of the industry.
- 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
- HSTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HSTM has been increased compared to 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 3.53 indicates that HSTM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HSTM (3.53) is better than 80.00% 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 | 3.53 |
ROIC/WACC0.5
WACC9.49%
2.3 Liquidity
- HSTM has a Current Ratio of 1.31. This is a normal value and indicates that HSTM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.31, HSTM is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
- HSTM has a Quick Ratio of 1.31. This is a normal value and indicates that HSTM is financially healthy and should not expect problems in meeting its short term obligations.
- HSTM's Quick ratio of 1.31 is on the low side compared to the rest of the industry. HSTM is outperformed by 68.57% of its industry peers.
- HSTM does not score too well on the current and quick ratio evaluation. However, as it has 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%.
- HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.96% yearly.
- HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.68%.
- Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 2.79% on average per year.
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 12.85% on average over the next years. This is quite good.
- Based on estimates for the next years, HSTM will show a small growth in Revenue. The Revenue will grow by 4.27% on average per year.
EPS Next Y-2.02%
EPS Next 2Y8.52%
EPS Next 3Y12.85%
EPS Next 5YN/A
Revenue Next Year3.32%
Revenue Next 2Y4.1%
Revenue Next 3Y4.35%
Revenue Next 5Y4.27%
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.
- 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
- A Price/Earnings ratio of 29.38 indicates a quite expensive valuation of HSTM.
- Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HSTM to the average of the S&P500 Index (28.06), we can say HSTM is valued inline with the index average.
- The Price/Forward Earnings ratio is 25.71, which means the current valuation is very expensive for HSTM.
- The rest of the industry has a similar Price/Forward Earnings ratio as HSTM.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, HSTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 25.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSTM indicates a rather cheap valuation: HSTM is cheaper than 88.57% of the companies listed in the same industry.
- 71.43% of the companies in the same industry are more expensive than HSTM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.4 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
- HSTM has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as HSTM's earnings are expected to grow with 12.85% in the coming years.
PEG (NY)N/A
PEG (5Y)3.69
EPS Next 2Y8.52%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
- HSTM has a yearly dividend return of 0.61%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.60, HSTM pays a better dividend. On top of this HSTM pays more dividend than 94.29% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
- The dividend of HSTM is nicely growing with an annual growth rate of 126.03%!
- HSTM has paid a dividend for less than 5 years, so there is no long track record yet.
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 2Y8.52%
EPS Next 3Y12.85%
NASDAQ:HSTM (2/10/2026, 2:49:01 PM)
19.98
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners73.96%
Inst Owner Change-3.82%
Ins Owners18.69%
Ins Owner Change-22.51%
Market Cap592.81M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target33.15 (65.92%)
Short Float %3.27%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.69%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-4.41%
PT rev (3m)-4.41%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)-40.22%
EPS NY rev (1m)-5.02%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 25.71 | ||
| P/S | 1.99 | ||
| P/FCF | 20.4 | ||
| P/OCF | 9.67 | ||
| P/B | 1.7 | ||
| P/tB | 8.91 | ||
| EV/EBITDA | 7.05 |
EPS(TTM)0.68
EY3.4%
EPS(NY)0.78
Fwd EY3.89%
FCF(TTM)0.98
FCFY4.9%
OCF(TTM)2.07
OCFY10.34%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)N/A
PEG (5Y)3.69
Graham Number13.42
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 | 3.53 |
F-Score7
WACC9.49%
ROIC/WACC0.5
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 Y-2.02%
EPS Next 2Y8.52%
EPS Next 3Y12.85%
EPS Next 5YN/A
Revenue 1Y (TTM)3.68%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%4.62%
Revenue Next Year3.32%
Revenue Next 2Y4.1%
Revenue Next 3Y4.35%
Revenue Next 5Y4.27%
EBIT growth 1Y7.99%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year229.22%
EBIT Next 3Y57.41%
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 for HSTM stock?
ChartMill assigns a valuation rating of 5 / 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 8 / 10.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 29.38 and the Price/Book (PB) ratio is 1.7.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to decline by -2.02% in the next year.