21.39 USD
-0.08 (-0.37%)
21.39 USD
0 (0%)
Taking everything into account, HSTM scores 6 out of 10 in our fundamental rating. HSTM was compared to 35 industry peers in the Health Care Technology industry. HSTM gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
- HSTM had a positive operating cash flow in the past year.
- 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 Return On Assets of 4.14%. This is amongst the best in the industry. HSTM outperforms 94.29% of its industry peers.
- The Return On Equity of HSTM (5.93%) is better than 94.29% of its industry peers.
- The Return On Invested Capital of HSTM (4.73%) is better than 77.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HSTM 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's Profit Margin of 6.93% is amongst the best of the industry. HSTM outperforms 91.43% of its industry peers.
- HSTM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 7.54%, HSTM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- HSTM's Operating Margin has improved in the last couple of years.
- HSTM's Gross Margin of 65.35% is in line compared to the rest of the industry. HSTM outperforms 60.00% 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.
- HSTM has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HSTM has less shares outstanding
- 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 3.71 indicates that HSTM is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.71, HSTM is doing good in 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 | 3.71 |
ROIC/WACC0.49
WACC9.68%
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 68.57% 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 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
- The Earnings Per Share has been growing slightly by 4.62% over the past year.
- Measured over the past 5 years, HSTM shows a small growth in Earnings Per Share. The EPS has been growing by 7.96% on average per year.
- HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.68%.
- HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
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 8.38% 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 Y3.16%
EPS Next 2Y8.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.32%
Revenue Next 2Y4.1%
Revenue Next 3Y4.35%
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 31.46, which means the current valuation is very expensive for HSTM.
- Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
- HSTM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 27.59, HSTM can be considered very expensive at the moment.
- 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.46 | ||
| Fwd PE | 27.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 74.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 7.72 |
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)9.96
PEG (5Y)3.95
EPS Next 2Y8.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- HSTM has a yearly dividend return of 0.56%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.54, 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 0.56, HSTM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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.
- HSTM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.69%
EPS Next 2Y8.38%
EPS Next 3YN/A
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 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 8 / 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 1.82.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 3.16% in the next year.