HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM • US42222N1037
21.37 USD
+0.14 (+0.66%)
At close: Mar 2, 2026
21.37 USD
0 (0%)
After Hours: 3/2/2026, 4:10:10 PM
Taking everything into account, HSTM scores 5 out of 10 in our fundamental rating. HSTM was compared to 35 industry peers in the Health Care Technology industry. HSTM has an excellent profitability rating, but there are some minor concerns on its financial health. HSTM has a correct valuation and a medium 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.
- In the past 5 years HSTM always reported a positive cash flow from operatings.
1.2 Ratios
- HSTM has a Return On Assets of 3.52%. This is amongst the best in the industry. HSTM outperforms 94.29% of its industry peers.
- HSTM has a Return On Equity of 5.18%. This is amongst the best in the industry. HSTM outperforms 94.29% of its industry peers.
- HSTM's Return On Invested Capital of 4.08% is fine compared to the rest of the industry. HSTM outperforms 74.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 7.08%.
- The last Return On Invested Capital (4.08%) for HSTM is above the 3 year average (3.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 5.18% | ||
| ROIC | 4.08% |
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
1.3 Margins
- With an excellent Profit Margin value of 6.03%, HSTM belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of HSTM has remained more or less at the same level.
- HSTM's Operating Margin of 6.65% is fine compared to the rest of the industry. HSTM outperforms 77.14% of its industry peers.
- In the last couple of years the Operating Margin of HSTM has remained more or less at the same level.
- HSTM's Gross Margin of 64.74% is in line compared to the rest of the industry. HSTM outperforms 57.14% of its industry peers.
- HSTM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.65% | ||
| PM (TTM) | 6.03% | ||
| GM | 64.74% |
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
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.
- 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 3.31. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
- HSTM has a better Altman-Z score (3.31) than 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 | 3.31 |
ROIC/WACC0.43
WACC9.44%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
- HSTM has a Current ratio of 0.96. This is amonst the worse of the industry: HSTM underperforms 80.00% of its industry peers.
- HSTM has a Quick Ratio of 0.96. This is a bad value and indicates that HSTM is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of HSTM (0.96) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- HSTM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.06%.
- HSTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
- The Revenue has been growing slightly by 4.26% in the past year.
- Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 4.43% on average per year.
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%
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 16.41% yearly.
- The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y11.03%
EPS Next 2Y16.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.89%
Revenue Next 2Y4.87%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 30.53 indicates a quite expensive valuation of HSTM.
- HSTM's Price/Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 71.43% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.07, HSTM is valued at the same level.
- HSTM is valuated quite expensively with a Price/Forward Earnings ratio of 27.49.
- The rest of the industry has a similar Price/Forward Earnings ratio as HSTM.
- When comparing the Price/Forward Earnings ratio of HSTM to the average of the S&P500 Index (28.05), we can say HSTM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.53 | ||
| Fwd PE | 27.49 |
4.2 Price Multiples
- 85.71% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.35 | ||
| EV/EBITDA | 8.66 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 16.41% in the coming years.
PEG (NY)2.77
PEG (5Y)1.88
EPS Next 2Y16.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- HSTM has a yearly dividend return of 0.60%, which is pretty low.
- HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.60. HSTM pays more dividend than 91.43% of the companies in the same industry.
- With a Dividend Yield of 0.60, HSTM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
- On average, the dividend of HSTM grows each year by 148.87%, which is quite nice.
- HSTM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)148.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- HSTM pays out 20.33% of its income as dividend. This is a sustainable payout ratio.
- HSTM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.33%
EPS Next 2Y16.41%
EPS Next 3YN/A
21.37
+0.14 (+0.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-23 2026-02-23/amc
Earnings (Next)05-04 2026-05-04
Inst Owners73.96%
Inst Owner Change-1.97%
Ins Owners18.69%
Ins Owner Change-22.14%
Market Cap634.05M
Revenue(TTM)304.06M
Net Income(TTM)18.34M
Analysts78.18
Price Target33.15 (55.12%)
Short Float %3.98%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.12
Dividend Growth(5Y)148.87%
DP20.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.92%
Min EPS beat(2)11.41%
Max EPS beat(2)60.43%
EPS beat(4)3
Avg EPS beat(4)18.24%
Min EPS beat(4)-12.02%
Max EPS beat(4)60.43%
EPS beat(8)7
Avg EPS beat(8)25.3%
EPS beat(12)11
Avg EPS beat(12)29.71%
EPS beat(16)15
Avg EPS beat(16)53.52%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)2.56%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)2.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.5%
Revenue beat(12)1
Avg Revenue beat(12)-1.71%
Revenue beat(16)1
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)-4.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-2.76%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.53 | ||
| Fwd PE | 27.49 | ||
| P/S | 2.09 | ||
| P/FCF | 20.35 | ||
| P/OCF | 10.01 | ||
| P/B | 1.79 | ||
| P/tB | 24.39 | ||
| EV/EBITDA | 8.66 |
EPS(TTM)0.7
EY3.28%
EPS(NY)0.78
Fwd EY3.64%
FCF(TTM)1.05
FCFY4.91%
OCF(TTM)2.13
OCFY9.99%
SpS10.25
BVpS11.93
TBVpS0.88
PEG (NY)2.77
PEG (5Y)1.88
Graham Number13.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 5.18% | ||
| ROCE | 5.11% | ||
| ROIC | 4.08% | ||
| ROICexc | 4.76% | ||
| ROICexgc | 144.29% | ||
| OM | 6.65% | ||
| PM (TTM) | 6.03% | ||
| GM | 64.74% | ||
| FCFM | 10.25% |
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
ROICexc(3y)4.86%
ROICexc(5y)3.91%
ROICexgc(3y)162.5%
ROICexgc(5y)114.53%
ROCE(3y)4.9%
ROCE(5y)4.01%
ROICexgc growth 3Y31.22%
ROICexgc growth 5Y26.84%
ROICexc growth 3Y16.25%
ROICexc growth 5Y4.77%
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 73.98% | ||
| Cap/Sales | 10.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.38% | ||
| Profit Quality | 169.86% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.31 |
F-Score6
WACC9.44%
ROIC/WACC0.43
Cap/Depr(3y)70.13%
Cap/Depr(5y)69.08%
Cap/Sales(3y)10.09%
Cap/Sales(5y)9.91%
Profit Quality(3y)184.6%
Profit Quality(5y)212.64%
High Growth Momentum
Growth
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
EPS Next Y11.03%
EPS Next 2Y16.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%
Revenue Next Year4.89%
Revenue Next 2Y4.87%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%
EBIT growth 1Y-4.95%
EBIT growth 3Y17.73%
EBIT growth 5Y5.07%
EBIT Next Year264.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.55%
FCF growth 3Y6.09%
FCF growth 5Y12.79%
OCF growth 1Y9.81%
OCF growth 3Y7.35%
OCF growth 5Y12.04%
HEALTHSTREAM INC / HSTM FAQ
What is the fundamental rating for HSTM stock?
ChartMill assigns a fundamental rating of 5 / 10 to HSTM.
What is the valuation status for 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 7 / 10.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 30.53 and the Price/Book (PB) ratio is 1.79.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 11.03% in the next year.