24.06 USD
-0.32 (-1.31%)
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. Both the health and profitability get an excellent rating, making HSTM a very profitable company, without any liquidiy or solvency issues. 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.
In the past 5 years HSTM has always been profitable.
HSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HSTM has a better Return On Assets (4.14%) than 94.29% of its industry peers.
With an excellent Return On Equity value of 5.93%, HSTM belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
HSTM's Return On Invested Capital of 4.73% is fine compared to the rest of the industry. HSTM outperforms 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.61%.
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 better Profit Margin (6.93%) than 91.43% of its industry peers.
HSTM's Profit Margin has improved in the last couple of years.
HSTM has a Operating Margin of 7.54%. This is in the better half of the industry: HSTM outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of HSTM has grown nicely.
HSTM has a Gross Margin (65.35%) which is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
The number of shares outstanding for HSTM has been increased compared to 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
HSTM has an Altman-Z score of 4.05. 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 4.05, HSTM is in the better half of 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 | 4.05 |
ROIC/WACC0.5
WACC9.45%
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.
With a Current ratio value of 1.31, HSTM is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 1.31, HSTM is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
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%.
HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.96% yearly.
The Revenue has been growing slightly by 3.68% in the past 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
The Earnings Per Share is expected to grow by 8.38% on average over the next years. This is quite good.
HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y7.02%
EPS Next 2Y8.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.32%
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.
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
A Price/Earnings ratio of 35.38 indicates a quite expensive valuation of HSTM.
Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
HSTM is valuated rather expensively when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
HSTM is valuated quite expensively with a Price/Forward Earnings ratio of 31.04.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
HSTM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.38 | ||
| Fwd PE | 31.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSTM indicates a rather cheap valuation: HSTM is cheaper than 88.57% of the companies listed in the same industry.
77.14% 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 | 24.57 | ||
| EV/EBITDA | 9.04 |
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.
The excellent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)5.04
PEG (5Y)4.44
EPS Next 2Y8.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.51%, which is pretty low.
HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.53. HSTM pays more dividend than 91.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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.
The dividend of HSTM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.69%
EPS Next 2Y8.38%
EPS Next 3YN/A
NASDAQ:HSTM (12/16/2025, 2:08:44 PM)
24.06
-0.32 (-1.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners73.96%
Inst Owner Change-3.12%
Ins Owners21.05%
Ins Owner Change-2.74%
Market Cap713.86M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target34.68 (44.14%)
Short Float %4.49%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)0%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-7.61%
EPS NY rev (1m)4.14%
EPS NY rev (3m)4.14%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.38 | ||
| Fwd PE | 31.04 | ||
| P/S | 2.39 | ||
| P/FCF | 24.57 | ||
| P/OCF | 11.65 | ||
| P/B | 2.04 | ||
| P/tB | 10.73 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)0.68
EY2.83%
EPS(NY)0.78
Fwd EY3.22%
FCF(TTM)0.98
FCFY4.07%
OCF(TTM)2.07
OCFY8.59%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)5.04
PEG (5Y)4.44
Graham Number13.42
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 | 4.05 |
F-Score7
WACC9.45%
ROIC/WACC0.5
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 Y7.02%
EPS Next 2Y8.38%
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 Year3.32%
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 Year233.25%
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 8 / 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 35.38 and the Price/Book (PB) ratio is 2.04.
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 7.02% in the next year.