HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM • US42222N1037
20 USD
-0.28 (-1.38%)
At close: Feb 18, 2026
20 USD
0 (0%)
After Hours: 2/18/2026, 8:00:01 PM
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HSTM has a correct valuation and a medium growth rate. This makes HSTM very considerable for quality investing!
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.
- Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
- HSTM's Return On Assets of 4.14% is amongst the best of the industry. HSTM outperforms 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 6.72%.
- 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 has a Profit Margin of 6.93%. This is amongst the best in the industry. HSTM outperforms 91.43% of its industry peers.
- In the last couple of years the Profit Margin of HSTM has grown nicely.
- With a decent Operating Margin value of 7.54%, HSTM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- 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.
- 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
- HSTM has less shares outstanding than it did 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
- An Altman-Z score of 3.53 indicates that HSTM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.53, HSTM is in the better half of the industry, outperforming 77.14% 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 | 3.53 |
ROIC/WACC0.5
WACC9.43%
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.
- The Current ratio of HSTM (1.31) is worse than 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.
- The Quick ratio of HSTM (1.31) is worse 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
- 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
- Based on estimates for the next years, HSTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.85% on average per year.
- The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y-2.02%
EPS Next 2Y8.52%
EPS Next 3Y12.85%
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 29.41, HSTM can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.27. HSTM is around the same levels.
- Based on the Price/Forward Earnings ratio of 25.73, the valuation of HSTM can be described as expensive.
- HSTM's Price/Forward Earnings is on the same level as the industry average.
- HSTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.41 | ||
| Fwd PE | 25.73 |
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.
- HSTM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.42 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
- HSTM has an outstanding 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 12.85% in the coming years.
PEG (NY)N/A
PEG (5Y)3.69
EPS Next 2Y8.52%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.62%, HSTM is not a good candidate for dividend investing.
- In the last 3 months the price of HSTM has falen by -21.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 0.60, HSTM pays a better dividend. On top of this HSTM pays more dividend than 94.29% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
- On average, the dividend of HSTM grows each year by 126.03%, which is quite nice.
- 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 17.69% 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 2Y8.52%
EPS Next 3Y12.85%
20
-0.28 (-1.38%)
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-2.8%
Ins Owners18.69%
Ins Owner Change-22.51%
Market Cap593.40M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target33.15 (65.75%)
Short Float %3.98%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)-21.43%
EPS NQ rev (3m)-40.22%
EPS NY rev (1m)-5.02%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.41 | ||
| Fwd PE | 25.73 | ||
| P/S | 1.99 | ||
| P/FCF | 20.42 | ||
| P/OCF | 9.68 | ||
| P/B | 1.7 | ||
| P/tB | 8.92 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)0.68
EY3.4%
EPS(NY)0.78
Fwd EY3.89%
FCF(TTM)0.98
FCFY4.9%
OCF(TTM)2.07
OCFY10.33%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)N/A
PEG (5Y)3.69
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 | 3.53 |
F-Score7
WACC9.43%
ROIC/WACC0.5
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 Y-2.02%
EPS Next 2Y8.52%
EPS Next 3Y12.85%
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 29.41 and the Price/Book (PB) ratio is 1.7.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to decline by -2.02% in the next year.