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 37 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
HSTM had positive earnings in the past year.
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 (3.92%) than 91.89% of its industry peers.
HSTM's Return On Equity of 5.57% is amongst the best of the industry. HSTM outperforms 91.89% of its industry peers.
HSTM has a better Return On Invested Capital (4.39%) than 89.19% 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 7.17%.
The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.57% | ||
| ROIC | 4.39% |
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
The Profit Margin of HSTM (6.86%) is better than 89.19% of its industry peers.
In the last couple of years the Profit Margin of HSTM has grown nicely.
With an excellent Operating Margin value of 7.30%, HSTM belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
HSTM's Operating Margin has improved in the last couple of years.
HSTM has a better Gross Margin (66.42%) than 62.16% of its industry peers.
In the last couple of years the Gross Margin of HSTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.3% | ||
| PM (TTM) | 6.86% | ||
| GM | 66.42% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
The number of shares outstanding for HSTM has been increased compared to 1 year ago.
Compared to 5 years ago, HSTM has less shares outstanding
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 4.99 indicates that HSTM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.99, HSTM belongs to the top of the industry, outperforming 83.78% 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 | 4.99 |
ROIC/WACC0.38
WACC11.58%
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.
With a Current ratio value of 1.32, HSTM perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
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 of 1.32. This is comparable to the rest of the industry: HSTM outperforms 45.95% 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 | 1.32 | ||
| 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 32.00%, which is quite impressive.
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 4.51%.
Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 2.79% on average per year.
EPS 1Y (TTM)32%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%6.67%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%5.18%
3.2 Future
HSTM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.57% yearly.
Based on estimates for the next years, HSTM will show a small growth in Revenue. The Revenue will grow by 6.88% on average per year.
EPS Next Y2%
EPS Next 2Y4.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.18%
Revenue Next 3Y6.31%
Revenue Next 5Y6.88%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 48.73.
HSTM's Price/Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 75.68% of the companies in the same industry.
HSTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.33.
A Price/Forward Earnings ratio of 47.77 indicates a quite expensive valuation of HSTM.
67.57% of the companies in the same industry are more expensive than HSTM, based on the Price/Forward Earnings ratio.
HSTM is valuated expensively when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.73 | ||
| Fwd PE | 47.77 |
4.2 Price Multiples
HSTM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSTM is cheaper than 83.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.26 | ||
| EV/EBITDA | 13.54 |
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)24.36
PEG (5Y)6.12
EPS Next 2Y4.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, HSTM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 38.51, HSTM pays a better dividend. On top of this HSTM pays more dividend than 89.19% of the companies listed in the same industry.
With a Dividend Yield of 0.36, HSTM pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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
17.01% 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.
DP17.01%
EPS Next 2Y4.57%
EPS Next 3YN/A
32.16
+0.48 (+1.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners78.63%
Inst Owner Change-0.24%
Ins Owners20.59%
Ins Owner Change1.11%
Market Cap981.84M
Analysts76.67
Price Target35.7 (11.01%)
Short Float %2.44%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.43%
Min EPS beat(2)12.04%
Max EPS beat(2)48.82%
EPS beat(4)4
Avg EPS beat(4)32.36%
Min EPS beat(4)12.04%
Max EPS beat(4)52.91%
EPS beat(8)8
Avg EPS beat(8)35.45%
EPS beat(12)12
Avg EPS beat(12)65.28%
EPS beat(16)16
Avg EPS beat(16)136.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-0.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.07%
Revenue beat(12)0
Avg Revenue beat(12)-2.23%
Revenue beat(16)2
Avg Revenue beat(16)-1.07%
PT rev (1m)0%
PT rev (3m)7.69%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)3.45%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.73 | ||
| Fwd PE | 47.77 | ||
| P/S | 3.37 | ||
| P/FCF | 33.26 | ||
| P/OCF | 17.03 | ||
| P/B | 2.73 | ||
| P/tB | 14.19 | ||
| EV/EBITDA | 13.54 |
EPS(TTM)0.66
EY2.05%
EPS(NY)0.67
Fwd EY2.09%
FCF(TTM)0.97
FCFY3.01%
OCF(TTM)1.89
OCFY5.87%
SpS9.55
BVpS11.77
TBVpS2.27
PEG (NY)24.36
PEG (5Y)6.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.57% | ||
| ROCE | 5.39% | ||
| ROIC | 4.39% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 224.59% | ||
| OM | 7.3% | ||
| PM (TTM) | 6.86% | ||
| GM | 66.42% | ||
| FCFM | 10.12% |
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%
ROICexcg growth 3Y117.94%
ROICexcg 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-Score8
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 68.23% | ||
| Cap/Sales | 9.65% | ||
| Interest Coverage | 210.77 | ||
| Cash Conversion | 92.21% | ||
| Profit Quality | 147.52% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 4.99 |
F-Score8
WACC11.58%
ROIC/WACC0.38
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)32%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%6.67%
EPS Next Y2%
EPS Next 2Y4.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.51%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%5.18%
Revenue Next Year4.67%
Revenue Next 2Y5.18%
Revenue Next 3Y6.31%
Revenue Next 5Y6.88%
EBIT growth 1Y32.93%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year237.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.92%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y-9.86%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%