24.26 USD
-0.45 (-1.82%)
24.26 USD
0 (0%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year HSTM had a positive cash flow from operations.
Each year in the past 5 years HSTM has been profitable.
Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
HSTM has a Return On Assets of 4.14%. This is amongst the best in the industry. HSTM outperforms 94.29% of its industry peers.
HSTM's Return On Equity of 5.93% is amongst the best of the industry. HSTM outperforms 94.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.73%, HSTM belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HSTM is below the industry average of 6.67%.
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
The Profit Margin of HSTM (6.93%) is better than 91.43% of its industry peers.
HSTM's Profit Margin has improved in the last couple of years.
The Operating Margin of HSTM (7.54%) is better than 82.86% of its industry peers.
HSTM's Operating Margin has improved in the last couple of years.
HSTM has a better Gross Margin (65.35%) than 62.86% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSTM is destroying value.
Compared to 1 year ago, HSTM has more shares outstanding
Compared to 5 years ago, HSTM has less shares outstanding
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 4.09 indicates that HSTM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.09, HSTM is doing good in the industry, outperforming 80.00% 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 | 4.09 |
ROIC/WACC0.48
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM has a worse Current ratio (1.31) than 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.
Looking at the Quick ratio, with a value of 1.31, HSTM is doing worse than 68.57% of the companies in the same industry.
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
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.
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
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.
The Revenue is expected to grow by 4.27% on average over the next years.
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.
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 35.68.
Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
HSTM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 31.63, which means the current valuation is very expensive for HSTM.
HSTM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. HSTM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.68 | ||
| Fwd PE | 31.63 |
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.
Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.77 | ||
| EV/EBITDA | 9.19 |
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.
The excellent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)12.87
PEG (5Y)4.48
EPS Next 2Y7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, 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 4.61. HSTM pays more dividend than 91.43% of the companies in the same industry.
With a Dividend Yield of 0.49, HSTM pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
The dividend of HSTM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.69%
EPS Next 2Y7.8%
EPS Next 3YN/A
24.26
-0.45 (-1.82%)
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-3.12%
Ins Owners21.03%
Ins Owner Change0.4%
Market Cap719.79M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target34.68 (42.95%)
Short Float %4.11%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.69%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-7.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.68 | ||
| Fwd PE | 31.63 | ||
| P/S | 2.41 | ||
| P/FCF | 24.77 | ||
| P/OCF | 11.74 | ||
| P/B | 2.06 | ||
| P/tB | 10.82 | ||
| EV/EBITDA | 9.19 |
EPS(TTM)0.68
EY2.8%
EPS(NY)0.77
Fwd EY3.16%
FCF(TTM)0.98
FCFY4.04%
OCF(TTM)2.07
OCFY8.51%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)12.87
PEG (5Y)4.48
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 | 4.09 |
F-Score7
WACC9.82%
ROIC/WACC0.48
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 Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.68%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%4.62%
Revenue Next Year3.1%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
EBIT growth 1Y7.99%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year230.54%
EBIT Next 3YN/A
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 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 9 / 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 35.68 and the Price/Book (PB) ratio is 2.06.
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.