20.67 USD
-0.23 (-1.1%)
Last: Feb 4, 2026, 01:37 PM
HSTM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Health Care Technology industry. HSTM gets an excellent profitability rating and is at the same time showing great financial health properties. HSTM is not valued too expensively and it also shows a decent growth rate. With these ratings, HSTM could be worth investigating further for quality investing!.
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.
- Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 4.14%, HSTM belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 5.93%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.73%, HSTM is in the better half of the industry, outperforming 77.14% 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 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.73%), indicating increased profibility in the last year.
| 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's Profit Margin of 6.93% is amongst the best of the industry. HSTM outperforms 91.43% of its industry peers.
- HSTM's Profit Margin has improved in the last couple of years.
- The Operating Margin of HSTM (7.54%) is better than 80.00% of its industry peers.
- HSTM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 65.35%, HSTM is in line with its industry, outperforming 60.00% of the companies in the same 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- 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
- An Altman-Z score of 3.64 indicates that HSTM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.64, HSTM is in the better half of the industry, outperforming 80.00% 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 | 3.64 |
ROIC/WACC0.49
WACC9.58%
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.
- HSTM has a Current ratio of 1.31. This is in the lower half of the industry: HSTM underperforms 68.57% 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.
- HSTM has a worse Quick ratio (1.31) than 68.57% 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.
- 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
- The Earnings Per Share is expected to grow by 15.23% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.27% on average over the next years.
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
- 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 30.40, HSTM can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, HSTM is valued at the same level.
- Based on the Price/Forward Earnings ratio of 26.59, the valuation of HSTM can be described as expensive.
- HSTM's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.51. HSTM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.4 | ||
| Fwd PE | 26.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
- 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 | 21.1 | ||
| EV/EBITDA | 7.47 |
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.
- HSTM's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)39.81
PEG (5Y)3.82
EPS Next 2Y8.52%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- HSTM has a yearly dividend return of 0.56%, 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 0.56, HSTM pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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%
NASDAQ:HSTM (2/4/2026, 1:37:48 PM)
20.67
-0.23 (-1.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners73.96%
Inst Owner Change-3.61%
Ins Owners18.69%
Ins Owner Change-22.54%
Market Cap613.28M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target33.15 (60.38%)
Short Float %3.27%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.69%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-4.41%
PT rev (3m)-4.41%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)-40.22%
EPS NY rev (1m)-2.32%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.4 | ||
| Fwd PE | 26.59 | ||
| P/S | 2.05 | ||
| P/FCF | 21.1 | ||
| P/OCF | 10.01 | ||
| P/B | 1.76 | ||
| P/tB | 9.22 | ||
| EV/EBITDA | 7.47 |
EPS(TTM)0.68
EY3.29%
EPS(NY)0.78
Fwd EY3.76%
FCF(TTM)0.98
FCFY4.74%
OCF(TTM)2.07
OCFY9.99%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)39.81
PEG (5Y)3.82
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 | 3.64 |
F-Score7
WACC9.58%
ROIC/WACC0.49
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 Y0.76%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
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 3Y4.35%
Revenue Next 5Y4.27%
EBIT growth 1Y7.99%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year229.22%
EBIT Next 3Y57.41%
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 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 8 / 10.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 30.4 and the Price/Book (PB) ratio is 1.76.
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.