HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
USA - NASDAQ:HSTM - US42222N1037 - Common Stock
25.93 USD
-0.38 (-1.44%)
Taking everything into account, HSTM scores 6 out of 10 in our fundamental rating. HSTM was compared to 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 (4.07%) than 94.29% of its industry peers.
Looking at the Return On Equity, with a value of 5.80%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
HSTM has a Return On Invested Capital of 4.54%. This is amongst the best in the industry. HSTM outperforms 82.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.80%.
The last Return On Invested Capital (4.54%) for HSTM is above the 3 year average (3.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 5.8% | ||
| ROIC | 4.54% |
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 has a better Profit Margin (6.89%) than 91.43% of its industry peers.
In the last couple of years the Profit Margin of HSTM has grown nicely.
HSTM has a better Operating Margin (7.27%) than 82.86% of its industry peers.
In the last couple of years the Operating Margin of HSTM has grown nicely.
Looking at the Gross Margin, with a value of 65.64%, 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 | 7.27% | ||
| PM (TTM) | 6.89% | ||
| GM | 65.64% |
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.
HSTM has more shares outstanding than it did 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 4.26 indicates that HSTM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.26, HSTM is doing good in the industry, outperforming 74.29% 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 | 4.26 |
ROIC/WACC0.46
WACC9.86%
2.3 Liquidity
HSTM has a Current Ratio of 1.25. 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 1.25, HSTM is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 1.25 indicates that HSTM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, HSTM is doing worse than 71.43% of the companies in the same industry.
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 | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
HSTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.56%, which is quite good.
The Earnings Per Share has been growing slightly by 7.96% on average over the past years.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 3.50% in the last year.
The Revenue has been growing slightly by 2.79% on average over the past years.
EPS 1Y (TTM)13.56%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%28.57%
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%3.97%
3.2 Future
Based on estimates for the next years, HSTM will show a small growth in Earnings Per Share. The EPS will grow by 7.80% on average per year.
HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.70, which means the current valuation is very expensive for HSTM.
Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.89. HSTM is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 33.81, HSTM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 65.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, HSTM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 33.81 |
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.
85.71% 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 | 24.94 | ||
| EV/EBITDA | 10.23 |
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.
HSTM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)13.96
PEG (5Y)4.86
EPS Next 2Y7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.46%, which is pretty low.
HSTM's Dividend Yield is rather good when compared to the industry average which is at 4.92. HSTM pays more dividend than 91.43% of the companies in the same industry.
With a Dividend Yield of 0.46, HSTM pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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
HSTM pays out 17.67% 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.
DP17.67%
EPS Next 2Y7.8%
EPS Next 3YN/A
NASDAQ:HSTM (10/27/2025, 2:16:11 PM)
25.93
-0.38 (-1.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners76.66%
Inst Owner Change-0.7%
Ins Owners21.03%
Ins Owner Change0.41%
Market Cap768.57M
Revenue(TTM)295.21M
Net Income(TTM)20.34M
Analysts78.18
Price Target34.68 (33.74%)
Short Float %3.66%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.55%
Min EPS beat(2)-12.02%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)15.49%
Min EPS beat(4)-12.02%
Max EPS beat(4)48.82%
EPS beat(8)7
Avg EPS beat(8)27.92%
EPS beat(12)11
Avg EPS beat(12)38.02%
EPS beat(16)15
Avg EPS beat(16)105.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.91%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-1.96%
Revenue beat(4)0
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-1.03%
Revenue beat(8)0
Avg Revenue beat(8)-2.49%
Revenue beat(12)0
Avg Revenue beat(12)-2.26%
Revenue beat(16)0
Avg Revenue beat(16)-2.16%
PT rev (1m)0%
PT rev (3m)-1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.07%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 33.81 | ||
| P/S | 2.6 | ||
| P/FCF | 24.94 | ||
| P/OCF | 12.32 | ||
| P/B | 2.19 | ||
| P/tB | 11.77 | ||
| EV/EBITDA | 10.23 |
EPS(TTM)0.67
EY2.58%
EPS(NY)0.77
Fwd EY2.96%
FCF(TTM)1.04
FCFY4.01%
OCF(TTM)2.1
OCFY8.11%
SpS9.96
BVpS11.83
TBVpS2.2
PEG (NY)13.96
PEG (5Y)4.86
Graham Number13.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 5.8% | ||
| ROCE | 5.58% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 197.11% | ||
| OM | 7.27% | ||
| PM (TTM) | 6.89% | ||
| GM | 65.64% | ||
| FCFM | 10.44% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.83% | ||
| Cap/Sales | 10.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.05% | ||
| Profit Quality | 151.56% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 4.26 |
F-Score7
WACC9.86%
ROIC/WACC0.46
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)13.56%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%28.57%
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%3.97%
Revenue Next Year3.1%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
EBIT growth 1Y11.64%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year230.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y40.67%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y28.07%
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 38.7 and the Price/Book (PB) ratio is 2.19.
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 2.77% in the next year.