HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM - Nasdaq - US42222N1037 - Common Stock - Currency: USD
Overall HSTM gets a fundamental rating of 7 out of 10. We evaluated HSTM against 36 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.65%, HSTM belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
HSTM has a better Return On Equity (5.27%) than 94.44% of its industry peers.
HSTM's Return On Invested Capital of 4.08% is amongst the best of the industry. HSTM outperforms 86.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.38%.
The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 5.27% | ||
| ROIC | 4.08% |
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 better Profit Margin (6.54%) than 91.67% of its industry peers.
In the last couple of years the Profit Margin of HSTM has grown nicely.
Looking at the Operating Margin, with a value of 6.83%, HSTM belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
HSTM's Operating Margin has improved in the last couple of years.
HSTM has a better Gross Margin (66.21%) than 63.89% of its industry peers.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 6.54% | ||
| GM | 66.21% |
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.
The number of shares outstanding for HSTM has been reduced compared to 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
HSTM has an Altman-Z score of 4.12. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
HSTM has a better Altman-Z score (4.12) than 80.56% 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 | 4.12 |
ROIC/WACC0.38
WACC10.7%
2.3 Liquidity
HSTM has a Current Ratio of 1.35. 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 1.35. This is in the lower half of the industry: HSTM underperforms 63.89% of its industry peers.
A Quick Ratio of 1.35 indicates that HSTM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.35, HSTM is doing worse than 63.89% 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 | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.62% over the past year.
HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.96% yearly.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 3.35% in the last year.
The Revenue has been growing slightly by 2.79% on average over the past years.
EPS 1Y (TTM)8.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%-17.65%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%1%
3.2 Future
The Earnings Per Share is expected to grow by 3.64% 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 6.88% yearly.
EPS Next Y-0.7%
EPS Next 2Y3.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.19%
Revenue Next 2Y4.19%
Revenue Next 3Y6.31%
Revenue Next 5Y6.88%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 42.98, HSTM can be considered very expensive at the moment.
77.78% of the companies in the same industry are more expensive than HSTM, based on the Price/Earnings ratio.
HSTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 38.20 indicates a quite expensive valuation of HSTM.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than 63.89% of the companies in the same industry.
HSTM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.98 | ||
| Fwd PE | 38.2 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSTM indicates a rather cheap valuation: HSTM is cheaper than 86.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.92 | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
HSTM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.4
EPS Next 2Y3.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, HSTM is not a good candidate for dividend investing.
HSTM's Dividend Yield is rather good when compared to the industry average which is at 22.07. HSTM pays more dividend than 88.89% of the companies in the same industry.
With a Dividend Yield of 0.43, HSTM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
18.30% 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.
DP18.3%
EPS Next 2Y3.64%
EPS Next 3YN/A
27.08
+0.38 (+1.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners76.2%
Inst Owner Change0%
Ins Owners20.38%
Ins Owner Change1.51%
Market Cap826.75M
Analysts78.18
Price Target35.19 (29.95%)
Short Float %2.58%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP18.3%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.01%
Min EPS beat(2)-12.02%
Max EPS beat(2)12.04%
EPS beat(4)3
Avg EPS beat(4)16.13%
Min EPS beat(4)-12.02%
Max EPS beat(4)48.82%
EPS beat(8)7
Avg EPS beat(8)32.31%
EPS beat(12)11
Avg EPS beat(12)46.35%
EPS beat(16)15
Avg EPS beat(16)124.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-1.03%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.34%
Revenue beat(16)1
Avg Revenue beat(16)-1.73%
PT rev (1m)0%
PT rev (3m)-1.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-6.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.98 | ||
| Fwd PE | 38.2 | ||
| P/S | 2.83 | ||
| P/FCF | 23.92 | ||
| P/OCF | 12.96 | ||
| P/B | 2.28 | ||
| P/tB | 10.96 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)0.63
EY2.33%
EPS(NY)0.71
Fwd EY2.62%
FCF(TTM)1.13
FCFY4.18%
OCF(TTM)2.09
OCFY7.72%
SpS9.58
BVpS11.88
TBVpS2.47
PEG (NY)N/A
PEG (5Y)5.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 5.27% | ||
| ROCE | 5.02% | ||
| ROIC | 4.08% | ||
| ROICexc | 5.71% | ||
| ROICexgc | N/A | ||
| OM | 6.83% | ||
| PM (TTM) | 6.54% | ||
| GM | 66.21% | ||
| FCFM | 11.82% |
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%
ROICexcg growth 3Y117.94%
ROICexcg 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-Score8
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 70.15% | ||
| Cap/Sales | 10% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.5% | ||
| Profit Quality | 180.86% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 4.12 |
F-Score8
WACC10.7%
ROIC/WACC0.38
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)8.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%-17.65%
EPS Next Y-0.7%
EPS Next 2Y3.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%1%
Revenue Next Year3.19%
Revenue Next 2Y4.19%
Revenue Next 3Y6.31%
Revenue Next 5Y6.88%
EBIT growth 1Y6.18%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year230.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.33%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y24.92%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%