21.39 USD
-0.08 (-0.37%)
21.39 USD
0 (0%)
HSTM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate. With these ratings, HSTM could be worth investigating further for quality investing!.
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.
- Each year in the past 5 years HSTM has been profitable.
- HSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HSTM (4.14%) is better than 94.29% of its industry peers.
- The Return On Equity of HSTM (5.93%) is better than 94.29% of its industry peers.
- HSTM has a Return On Invested Capital of 4.73%. This is in the better half of the industry: HSTM outperforms 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 6.63%.
- The last Return On Invested Capital (4.73%) for HSTM is above the 3 year average (3.49%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 6.93%, HSTM belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of HSTM has grown nicely.
- HSTM has a better Operating Margin (7.54%) than 80.00% of its industry peers.
- In the last couple of years the Operating Margin of HSTM has grown nicely.
- HSTM has a Gross Margin (65.35%) which is in line with its industry peers.
- HSTM's Gross Margin has improved in the last couple of years.
| 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.
- HSTM has more shares outstanding than it did 1 year ago.
- 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
- HSTM has an Altman-Z score of 3.70. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.70, HSTM is doing good in 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 | 3.7 |
ROIC/WACC0.49
WACC9.66%
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 has a Current ratio of 1.31. This is in the lower half of the industry: HSTM underperforms 68.57% of its industry peers.
- HSTM has a Quick 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.
- With a Quick ratio value of 1.31, HSTM is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
- 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.
- 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 3.68% in the last year.
- The Revenue has been growing slightly by 2.79% on average over the past years.
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
- HSTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.23% yearly.
- The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y0.76%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue Next Year3.32%
Revenue Next 2Y4.1%
Revenue Next 3Y4.35%
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 accelerating.
- 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
- Based on the Price/Earnings ratio of 31.46, the valuation of HSTM can be described as expensive.
- 74.29% of the companies in the same industry are more expensive than HSTM, based on the Price/Earnings ratio.
- HSTM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 27.52, the valuation of HSTM can be described as expensive.
- 62.86% of the companies in the same industry are more expensive than HSTM, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HSTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.46 | ||
| Fwd PE | 27.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaper than 91.43% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 74.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 15.23% in the coming years.
PEG (NY)41.19
PEG (5Y)3.95
EPS Next 2Y8.52%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.58%, HSTM is not a good candidate for dividend investing.
- HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.53. HSTM pays more dividend than 91.43% of the companies in the same industry.
- With a Dividend Yield of 0.58, HSTM pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
- 17.69% 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.
DP17.69%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
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 31.46 and the Price/Book (PB) ratio is 1.82.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 0.76% in the next year.