HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
USA - NASDAQ:HSTM - US42222N1037 - Common Stock
24.44 USD
-0.03 (-0.12%)
24.44 USD
0 (0%)
Overall HSTM gets a fundamental rating of 6 out of 10. We evaluated HSTM against 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 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.
Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
HSTM has a better Return On Assets (4.14%) than 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 better Return On Invested Capital (4.73%) than 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 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
Looking at the Profit Margin, with a value of 6.93%, HSTM belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
In the last couple of years the Profit Margin of HSTM has grown nicely.
Looking at the Operating Margin, with a value of 7.54%, HSTM belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
HSTM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 65.35%, HSTM is doing good in the industry, outperforming 62.86% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSTM is destroying value.
HSTM has more 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 4.06 indicates that HSTM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.06, HSTM is doing good in the industry, outperforming 77.14% of the companies in the same industry.
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 | 4.06 |
ROIC/WACC0.44
WACC10.66%
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.
The Current ratio of HSTM (1.31) is worse than 74.29% of its industry peers.
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 has a Quick ratio of 1.31. This is in the lower half of the industry: HSTM underperforms 74.29% of its industry peers.
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
The Earnings Per Share has been growing slightly by 4.62% over the past year.
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
Based on estimates for the next years, HSTM will show a small growth in Earnings Per Share. The EPS will grow by 7.80% on average per year.
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 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 35.94, which means the current valuation is very expensive for HSTM.
74.29% of the companies in the same industry are more expensive than HSTM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HSTM to the average of the S&P500 Index (25.89), we can say HSTM is valued slightly more expensively.
With a Price/Forward Earnings ratio of 31.86, HSTM can be considered very expensive at the moment.
65.71% of the companies in the same industry are more expensive than HSTM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, HSTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.94 | ||
| Fwd PE | 31.86 |
4.2 Price Multiples
88.57% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
80.00% 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 | 24.93 | ||
| EV/EBITDA | 9.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HSTM does not grow enough to justify the current Price/Earnings ratio.
HSTM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)12.96
PEG (5Y)4.51
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.
HSTM's Dividend Yield is rather good when compared to the industry average which is at 4.61. HSTM pays more dividend than 91.43% of the companies in the same industry.
With a Dividend Yield of 0.50, HSTM pays less dividend than the S&P500 average, which is at 2.44.
| 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
HSTM pays out 17.69% of its income as dividend. This is a sustainable payout ratio.
HSTM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.69%
EPS Next 2Y7.8%
EPS Next 3YN/A
24.44
-0.03 (-0.12%)
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 Cap724.40M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target34.68 (41.9%)
Short Float %3.66%
Short Ratio4.54
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 | 35.94 | ||
| Fwd PE | 31.86 | ||
| P/S | 2.43 | ||
| P/FCF | 24.93 | ||
| P/OCF | 11.82 | ||
| P/B | 2.07 | ||
| P/tB | 10.89 | ||
| EV/EBITDA | 9.07 |
EPS(TTM)0.68
EY2.78%
EPS(NY)0.77
Fwd EY3.14%
FCF(TTM)0.98
FCFY4.01%
OCF(TTM)2.07
OCFY8.46%
SpS10.07
BVpS11.78
TBVpS2.24
PEG (NY)12.96
PEG (5Y)4.51
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
WACC10.66%
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 35.94 and the Price/Book (PB) ratio is 2.07.
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.