21.39 USD
-0.08 (-0.37%)
21.39 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HSTM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year HSTM was profitable.
- HSTM had a positive operating cash flow in the past year.
- HSTM had positive earnings in each of the past 5 years.
- In the past 5 years HSTM always reported a positive cash flow from operatings.
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.
- The Return On Invested Capital of HSTM (4.73%) is better than 77.14% of its industry peers.
- HSTM had an Average Return On Invested Capital over the past 3 years of 3.49%. This is below the industry average of 6.63%.
- 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
- Looking at the Profit Margin, with a value of 6.93%, HSTM belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- HSTM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 7.54%, HSTM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- HSTM's Operating Margin has improved in the last couple of years.
- HSTM has a Gross Margin (65.35%) which is comparable to the rest of the industry.
- 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
- HSTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, HSTM has more shares outstanding
- 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
- An Altman-Z score of 3.71 indicates that HSTM is not in any danger for bankruptcy at the moment.
- HSTM has a Altman-Z score of 3.71. This is in the better half of the industry: HSTM outperforms 77.14% 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 | 3.71 |
ROIC/WACC0.49
WACC9.68%
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.
- A Quick Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
- HSTM's Quick ratio of 1.31 is on the low side compared to the rest of the industry. HSTM is outperformed by 68.57% of its industry peers.
- The current and quick ratio evaluation for HSTM is rather negative, while it does have 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.
- HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
- The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y3.16%
EPS Next 2Y8.38%
EPS Next 3YN/A
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 stable: in the next years the growth will be about the same 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
- HSTM is valuated quite expensively with a Price/Earnings ratio of 31.46.
- Compared to the rest of the industry, the Price/Earnings ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 74.29% of the companies listed in the same industry.
- HSTM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 27.59, HSTM can be considered very expensive at the moment.
- HSTM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 62.86% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HSTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.46 | ||
| Fwd PE | 27.59 |
4.2 Price Multiples
- 91.43% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
- HSTM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 7.72 |
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)9.96
PEG (5Y)3.95
EPS Next 2Y8.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.56%, HSTM is not a good candidate for dividend investing.
- HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.54. HSTM pays more dividend than 91.43% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HSTM's dividend is way lower than the S&P500 average.
| 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 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.
- HSTM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.69%
EPS Next 2Y8.38%
EPS Next 3YN/A
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 31.46 and the Price/Book (PB) ratio is 1.82.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 3.16% in the next year.