HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
USA - NASDAQ:HSTM - US42222N1037 - Common Stock
24.51 USD
-0.11 (-0.45%)
24.51 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HSTM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HSTM had positive earnings in the past year.
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 better Return On Assets (4.14%) than 94.29% of its industry peers.
HSTM has a better Return On Equity (5.93%) than 94.29% of its industry peers.
With an excellent Return On Invested Capital value of 4.73%, HSTM belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
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
HSTM has a Profit Margin of 6.93%. This is amongst the best in the industry. HSTM outperforms 91.43% of its industry peers.
In the last couple of years the Profit Margin of HSTM has grown nicely.
With an excellent Operating Margin value of 7.54%, HSTM belongs to the best 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.
The Gross Margin of HSTM (65.35%) is better than 62.86% of its industry peers.
In the last couple of years the Gross Margin of HSTM has grown nicely.
| 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.
The number of shares outstanding for HSTM has been reduced compared to 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 4.08. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
HSTM's Altman-Z score of 4.08 is fine compared to the rest of the industry. HSTM outperforms 77.14% 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 | 4.08 |
ROIC/WACC0.44
WACC10.71%
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 74.29% of its industry peers.
A Quick Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
The Quick ratio of HSTM (1.31) is worse than 74.29% 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.
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
HSTM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.80% yearly.
The Revenue is expected to grow by 4.27% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
HSTM is valuated quite expensively with a Price/Earnings ratio of 36.04.
74.29% 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 valuation a bit more expensive than the S&P500 average which is at 25.07.
Based on the Price/Forward Earnings ratio of 31.95, the valuation of HSTM can be described as expensive.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than 62.86% 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 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.04 | ||
| Fwd PE | 31.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaper than 88.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)13
PEG (5Y)4.53
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 4.64. 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 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 2Y7.8%
EPS Next 3YN/A
24.51
-0.11 (-0.45%)
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 Cap726.48M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target34.68 (41.49%)
Short Float %4.17%
Short Ratio5.24
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 | 36.04 | ||
| Fwd PE | 31.95 | ||
| P/S | 2.43 | ||
| P/FCF | 25 | ||
| P/OCF | 11.85 | ||
| P/B | 2.08 | ||
| P/tB | 10.92 | ||
| EV/EBITDA | 9.14 |
EPS(TTM)0.68
EY2.77%
EPS(NY)0.77
Fwd EY3.13%
FCF(TTM)0.98
FCFY4%
OCF(TTM)2.07
OCFY8.44%
SpS10.07
BVpS11.78
TBVpS2.24
PEG (NY)13
PEG (5Y)4.53
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 | 4.08 |
F-Score7
WACC10.71%
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 36.04 and the Price/Book (PB) ratio is 2.08.
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.