HEALTHSTREAM INC (HSTM)
US42222N1037 - Common Stock
We assign a fundamental rating of 6 out of 10 to HSTM. HSTM was compared to 37 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 has a correct valuation and a medium growth rate. This makes HSTM very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year HSTM was profitable.
In the past year HSTM had a positive cash flow from operations.
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 3.92%. This is amongst the best in the industry. HSTM outperforms 88.89% of its industry peers.
HSTM has a better Return On Equity (5.54%) than 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.25%, HSTM belongs to the top of the industry, outperforming 86.11% 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 6.43%.
The 3 year average ROIC (2.54%) for HSTM is below the current ROIC(4.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.54% | ||
| ROIC | 4.25% |
ROA(3y)2.22%
ROA(5y)2.54%
ROE(3y)3.27%
ROE(5y)3.74%
ROIC(3y)2.54%
ROIC(5y)2.8%
1.3 Margins
Looking at the Profit Margin, with a value of 6.84%, HSTM belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
HSTM's Profit Margin has declined in the last couple of years.
The Operating Margin of HSTM (7.24%) is better than 86.11% of its industry peers.
HSTM's Operating Margin has declined in the last couple of years.
The Gross Margin of HSTM (66.38%) 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 | 7.24% | ||
| PM (TTM) | 6.84% | ||
| GM | 66.38% |
OM growth 3Y-3.83%
OM growth 5Y-3.02%
PM growth 3Y-1.82%
PM growth 5Y-17.08%
GM growth 3Y1.26%
GM growth 5Y2.41%
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 reduced compared to 1 year ago.
Compared to 5 years ago, HSTM has less shares outstanding
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 5.03. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HSTM (5.03) is better than 77.78% of its industry peers.
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 | 5.03 |
ROIC/WACC0.47
WACC9.07%
2.3 Liquidity
HSTM has a Current Ratio of 1.32. 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 (1.32) is comparable to the rest of the industry.
HSTM has a Quick Ratio of 1.32. 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 1.32, HSTM is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.16% over the past year.
The Earnings Per Share has been growing slightly by 3.55% on average over the past years.
The Revenue has been growing slightly by 3.96% in the past year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)51.16%
EPS 3Y14.86%
EPS 5Y3.55%
EPS Q2Q%46.15%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.46%
Revenue growth 5Y3.8%
Sales Q2Q%3.92%
3.2 Future
The Earnings Per Share is expected to grow by 15.48% 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 6.27% on average per year.
EPS Next Y27.91%
EPS Next 2Y14.37%
EPS Next 3Y15.49%
EPS Next 5YN/A
Revenue Next Year3.77%
Revenue Next 2Y4.5%
Revenue Next 3Y5.23%
Revenue Next 5Y6.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 49.52, HSTM can be considered very expensive at the moment.
75.00% of the companies in the same industry are more expensive than HSTM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.20. HSTM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 49.22, which means the current valuation is very expensive for HSTM.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than 69.44% of the companies in the same industry.
HSTM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.52 | ||
| Fwd PE | 49.22 |
4.2 Price Multiples
HSTM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSTM is cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.2 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
HSTM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HSTM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HSTM's earnings are expected to grow with 15.48% in the coming years.
PEG (NY)1.77
PEG (5Y)13.96
EPS Next 2Y14.37%
EPS Next 3Y15.49%
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 23.23, HSTM pays a better dividend. On top of this HSTM pays more dividend than 86.11% of the companies listed in the same industry.
With a Dividend Yield of 0.43, HSTM pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of HSTM decreases each year by -36.96%.
HSTM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-36.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HSTM pays out 16.79% of its income as dividend. This is a sustainable payout ratio.
DP16.79%
EPS Next 2Y14.37%
EPS Next 3Y15.49%
HEALTHSTREAM INC
NASDAQ:HSTM (11/22/2024, 8:00:02 PM)
After market: 32.1868 0 (-0.01%)32.19
+0.37 (+1.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap978.90M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.52 | ||
| Fwd PE | 49.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.77
PEG (5Y)13.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.24% | ||
| PM (TTM) | 6.84% | ||
| GM | 66.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)51.16%
EPS 3Y14.86%
EPS 5Y
EPS Q2Q%
EPS Next Y27.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y