23.83 USD
-0.18 (-0.75%)
23.83 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 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.
In the past year HSTM had a positive cash flow from operations.
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
The Return On Assets of HSTM (4.14%) is better than 94.29% of its industry peers.
HSTM has a Return On Equity of 5.93%. This is amongst the best in the industry. HSTM outperforms 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 6.61%.
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.
In the last couple of years the Profit Margin of HSTM has grown nicely.
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.
HSTM's Operating Margin has improved in the last couple of years.
The Gross Margin of HSTM (65.35%) 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
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.
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 3.99 indicates that HSTM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.99, HSTM is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
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 | 3.99 |
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.
HSTM's Current 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.
A Quick Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM has a worse Quick ratio (1.31) than 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
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.
HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.68%.
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
Based on estimates for the next years, HSTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.38% on average per year.
Based on estimates for the next years, HSTM will show a small growth in Revenue. The Revenue will grow by 4.27% on average per year.
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.
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
Based on the Price/Earnings ratio of 35.04, the valuation of HSTM can be described as expensive.
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 26.59, HSTM is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.74, which means the current valuation is very expensive for HSTM.
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 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 30.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaper than 88.57% of the companies 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 | 24.33 | ||
| EV/EBITDA | 8.79 |
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.
PEG (NY)4.99
PEG (5Y)4.4
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.
Compared to an average industry Dividend Yield of 0.56, HSTM pays a better dividend. On top of this HSTM pays more dividend than 91.43% of the companies listed in the same industry.
With a Dividend Yield of 0.51, HSTM pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
On average, the dividend of HSTM grows each year by 126.03%, 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)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.
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
23.83
-0.18 (-0.75%)
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-22.54%
Market Cap707.04M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target34.68 (45.53%)
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)0%
EPS NQ rev (3m)-7.61%
EPS NY rev (1m)4.14%
EPS NY rev (3m)4.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 30.74 | ||
| P/S | 2.37 | ||
| P/FCF | 24.33 | ||
| P/OCF | 11.54 | ||
| P/B | 2.02 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 8.79 |
EPS(TTM)0.68
EY2.85%
EPS(NY)0.78
Fwd EY3.25%
FCF(TTM)0.98
FCFY4.11%
OCF(TTM)2.07
OCFY8.67%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)4.99
PEG (5Y)4.4
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 | 3.99 |
F-Score7
WACC9.68%
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 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 35.04 and the Price/Book (PB) ratio is 2.02.
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.