HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM - Nasdaq - US42222N1037 - Common Stock - Currency: USD
HSTM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 39 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 has a correct valuation and a medium growth rate. These ratings could make HSTM a good candidate 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
HSTM's Return On Assets of 3.92% is amongst the best of the industry. HSTM outperforms 89.19% of its industry peers.
HSTM has a better Return On Equity (5.54%) than 91.89% of its industry peers.
The Return On Invested Capital of HSTM (4.25%) is better than 86.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.44%.
The last Return On Invested Capital (4.25%) for HSTM is above the 3 year average (2.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.54% | ||
| ROIC | 4.25% |
ROA(3y)2.22%
ROA(5y)2.54%
ROE(3y)3.27%
ROE(5y)3.74%
ROIC(3y)2.54%
ROIC(5y)2.8%
1.3 Margins
The Profit Margin of HSTM (6.84%) is better than 89.19% of its industry peers.
In the last couple of years the Profit Margin of HSTM has declined.
HSTM's Operating Margin of 7.24% is amongst the best of the industry. HSTM outperforms 89.19% of its industry peers.
HSTM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 66.38%, HSTM is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.24% | ||
| PM (TTM) | 6.84% | ||
| GM | 66.38% |
OM growth 3Y-3.83%
OM growth 5Y-3.02%
PM growth 3Y-1.82%
PM growth 5Y-17.08%
GM growth 3Y1.26%
GM growth 5Y2.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSTM is destroying value.
Compared to 1 year ago, HSTM has less shares outstanding
The number of shares outstanding for HSTM has been reduced compared to 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 5.24 indicates that HSTM is not in any danger for bankruptcy at the moment.
The Altman-Z score of HSTM (5.24) is better than 78.38% of its industry peers.
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 | 5.24 |
ROIC/WACC0.41
WACC10.26%
2.3 Liquidity
HSTM has a Current Ratio of 1.32. 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 1.32. This is comparable to the rest of the industry: HSTM outperforms 45.95% of its industry peers.
HSTM has a Quick Ratio of 1.32. 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 Quick ratio (1.32) which is comparable to the rest of the 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 | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
HSTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.16%, which is quite impressive.
HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.55% yearly.
HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.96%.
HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
EPS 1Y (TTM)51.16%
EPS 3Y14.86%
EPS 5Y3.55%
EPS Q2Q%46.15%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.46%
Revenue growth 5Y3.8%
Sales Q2Q%3.92%
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 14.72% on average per year.
The Revenue is expected to grow by 6.03% on average over the next years.
EPS Next Y31.38%
EPS Next 2Y17.03%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue Next Year3.77%
Revenue Next 2Y4.45%
Revenue Next 3Y5.16%
Revenue Next 5Y6.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 50.58 indicates a quite expensive valuation of HSTM.
Compared to the rest of the industry, the Price/Earnings ratio of HSTM indicates a rather cheap valuation: HSTM is cheaper than 81.08% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. HSTM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 48.01, 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 72.97% of the companies in the same industry.
HSTM is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.58 | ||
| Fwd PE | 48.01 |
4.2 Price Multiples
91.89% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
70.27% 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 | 30.85 | ||
| EV/EBITDA | 14.3 |
4.3 Compensation for Growth
HSTM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 14.72% in the coming years.
PEG (NY)1.61
PEG (5Y)14.25
EPS Next 2Y17.03%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.40%, which is pretty low.
Compared to an average industry Dividend Yield of 52.78, HSTM pays a better dividend. On top of this HSTM pays more dividend than 89.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
The dividend of HSTM decreases each year by -36.96%.
HSTM does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-36.96%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HSTM pays out 16.79% of its income as dividend. This is a sustainable payout ratio.
DP16.79%
EPS Next 2Y17.03%
EPS Next 3Y14.72%
32.88
-0.7 (-2.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners73.71%
Inst Owner Change3.91%
Ins Owners21.18%
Ins Owner Change0%
Market Cap999.88M
Analysts76.67
Price Target33.15 (0.82%)
Short Float %3.57%
Short Ratio7.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.1
Dividend Growth(5Y)-36.96%
DP16.79%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.24%
Min EPS beat(2)15.66%
Max EPS beat(2)48.82%
EPS beat(4)4
Avg EPS beat(4)40.51%
Min EPS beat(4)15.66%
Max EPS beat(4)52.91%
EPS beat(8)8
Avg EPS beat(8)39.6%
EPS beat(12)12
Avg EPS beat(12)89.98%
EPS beat(16)15
Avg EPS beat(16)134.36%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)-2.55%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-0.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)0
Avg Revenue beat(12)-2.3%
Revenue beat(16)3
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)1.56%
EPS NQ rev (1m)1.69%
EPS NQ rev (3m)6.87%
EPS NY rev (1m)0%
EPS NY rev (3m)2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.58 | ||
| Fwd PE | 48.01 | ||
| P/S | 3.47 | ||
| P/FCF | 30.85 | ||
| P/OCF | 16.58 | ||
| P/B | 2.81 | ||
| P/tB | 15.65 | ||
| EV/EBITDA | 14.3 |
EPS(TTM)0.65
EY1.98%
EPS(NY)0.68
Fwd EY2.08%
FCF(TTM)1.07
FCFY3.24%
OCF(TTM)1.98
OCFY6.03%
SpS9.47
BVpS11.69
TBVpS2.1
PEG (NY)1.61
PEG (5Y)14.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.54% | ||
| ROCE | 5.32% | ||
| ROIC | 4.25% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 287.87% | ||
| OM | 7.24% | ||
| PM (TTM) | 6.84% | ||
| GM | 66.38% | ||
| FCFM | 11.25% |
ROA(3y)2.22%
ROA(5y)2.54%
ROE(3y)3.27%
ROE(5y)3.74%
ROIC(3y)2.54%
ROIC(5y)2.8%
ROICexc(3y)3.03%
ROICexc(5y)3.68%
ROICexgc(3y)69.42%
ROICexgc(5y)58.9%
ROCE(3y)3.18%
ROCE(5y)3.51%
ROICexcg growth 3Y40.93%
ROICexcg growth 5Y-24.92%
ROICexc growth 3Y2.98%
ROICexc growth 5Y-11.16%
OM growth 3Y-3.83%
OM growth 5Y-3.02%
PM growth 3Y-1.82%
PM growth 5Y-17.08%
GM growth 3Y1.26%
GM growth 5Y2.41%
F-Score9
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 67.55% | ||
| Cap/Sales | 9.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.03% | ||
| Profit Quality | 164.43% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 5.24 |
F-Score9
WACC10.26%
ROIC/WACC0.41
Cap/Depr(3y)67.73%
Cap/Depr(5y)79.29%
Cap/Sales(3y)9.77%
Cap/Sales(5y)10.27%
Profit Quality(3y)248.61%
Profit Quality(5y)210.28%
High Growth Momentum
Growth
EPS 1Y (TTM)51.16%
EPS 3Y14.86%
EPS 5Y3.55%
EPS Q2Q%46.15%
EPS Next Y31.38%
EPS Next 2Y17.03%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.46%
Revenue growth 5Y3.8%
Sales Q2Q%3.92%
Revenue Next Year3.77%
Revenue Next 2Y4.45%
Revenue Next 3Y5.16%
Revenue Next 5Y6.03%
EBIT growth 1Y40.52%
EBIT growth 3Y0.46%
EBIT growth 5Y0.66%
EBIT Next Year321.32%
EBIT Next 3Y67.54%
EBIT Next 5YN/A
FCF growth 1Y35.6%
FCF growth 3Y28.2%
FCF growth 5Y7.72%
OCF growth 1Y23.01%
OCF growth 3Y21.27%
OCF growth 5Y8.14%