21.69 USD
-0.12 (-0.55%)
21.69 USD
0 (0%)
Overall HSTM gets a fundamental rating of 6 out of 10. We evaluated HSTM against 34 industry peers in the Health Care Technology industry. HSTM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HSTM has a correct valuation and a medium growth rate. These ratings would make HSTM suitable 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.
- In the past 5 years HSTM has always been profitable.
- In the past 5 years HSTM always reported a positive cash flow from operatings.
1.2 Ratios
- HSTM has a better Return On Assets (4.14%) than 94.12% of its industry peers.
- The Return On Equity of HSTM (5.93%) is better than 94.12% of its industry peers.
- With a decent Return On Invested Capital value of 4.73%, HSTM is doing good in the industry, outperforming 76.47% 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 6.63%.
- 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
- Looking at the Profit Margin, with a value of 6.93%, HSTM belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
- HSTM's Profit Margin has improved in the last couple of years.
- HSTM's Operating Margin of 7.54% is fine compared to the rest of the industry. HSTM outperforms 79.41% of its industry peers.
- In the last couple of years the Operating Margin of HSTM has grown nicely.
- HSTM has a Gross Margin of 65.35%. This is in the better half of the industry: HSTM outperforms 61.76% 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
- HSTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, HSTM has more shares outstanding
- HSTM has less shares outstanding than it did 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
- HSTM has an Altman-Z score of 3.75. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.75, HSTM is in the better half of the industry, outperforming 79.41% 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 | 3.75 |
ROIC/WACC0.5
WACC9.41%
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 67.65% 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.
- Looking at the Quick ratio, with a value of 1.31, HSTM is doing worse than 67.65% of the companies in the same industry.
- 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%.
- 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.
- 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
- HSTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.23% yearly.
- HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y0.76%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
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.
- 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
- With a Price/Earnings ratio of 31.90, HSTM can be considered very expensive at the moment.
- 73.53% 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 (28.87), we can say HSTM is valued inline with the index average.
- With a Price/Forward Earnings ratio of 27.91, 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 61.76% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. HSTM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | 27.91 |
4.2 Price Multiples
- HSTM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSTM is cheaper than 88.24% of the companies in the same industry.
- HSTM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.15 | ||
| EV/EBITDA | 7.88 |
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.
- HSTM's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)41.77
PEG (5Y)4.01
EPS Next 2Y8.52%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.58%, 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 0.54. HSTM pays more dividend than 91.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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.
- 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 3Y15.23%
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 31.9 and the Price/Book (PB) ratio is 1.84.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 0.76% in the next year.