24.34 USD
+0.12 (+0.5%)
24.34 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. Both the health and profitability get an excellent rating, making HSTM a very profitable company, without any liquidiy or solvency issues. HSTM has a correct valuation and a medium growth rate.
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.
In the past 5 years HSTM always reported a positive cash flow from operatings.
1.2 Ratios
HSTM has a better Return On Assets (4.14%) than 94.29% of its industry peers.
Looking at the Return On Equity, with a value of 5.93%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
The Return On Invested Capital of HSTM (4.73%) is better than 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.61%.
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 Operating Margin of 7.54%. This is in the better half of the industry: HSTM outperforms 80.00% of its industry peers.
HSTM's Operating Margin has improved in the last couple of years.
HSTM's Gross Margin of 65.35% is in line compared to the rest of the industry. HSTM outperforms 60.00% of 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
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
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 4.05. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HSTM (4.05) is better than 80.00% of its industry peers.
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 | 4.05 |
ROIC/WACC0.5
WACC9.48%
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.
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%.
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
The Earnings Per Share is expected to grow by 8.38% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y7.02%
EPS Next 2Y8.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.32%
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
A Price/Earnings ratio of 35.79 indicates a quite expensive valuation of HSTM.
Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.76. HSTM is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 31.40, HSTM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 65.71% of the companies listed in the same industry.
HSTM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.79 | ||
| Fwd PE | 31.4 |
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 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.85 | ||
| EV/EBITDA | 9.03 |
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.
PEG (NY)5.1
PEG (5Y)4.5
EPS Next 2Y8.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.50%, which is pretty low.
HSTM's Dividend Yield is rather good when compared to the industry average which is at 4.67. HSTM pays more dividend than 91.43% of the companies in the same industry.
With a Dividend Yield of 0.50, HSTM pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
On average, the dividend of HSTM grows each year by 126.03%, which is quite nice.
HSTM has paid a dividend for less than 5 years, so there is no long track record yet.
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 2Y8.38%
EPS Next 3YN/A
24.34
+0.12 (+0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners73.96%
Inst Owner Change-3.12%
Ins Owners21.05%
Ins Owner Change0.35%
Market Cap722.17M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target34.68 (42.48%)
Short Float %4.11%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)4.14%
EPS NY rev (3m)4.14%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.79 | ||
| Fwd PE | 31.4 | ||
| P/S | 2.42 | ||
| P/FCF | 24.85 | ||
| P/OCF | 11.78 | ||
| P/B | 2.07 | ||
| P/tB | 10.86 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)0.68
EY2.79%
EPS(NY)0.78
Fwd EY3.18%
FCF(TTM)0.98
FCFY4.02%
OCF(TTM)2.07
OCFY8.49%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)5.1
PEG (5Y)4.5
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 | 4.05 |
F-Score7
WACC9.48%
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 Y7.02%
EPS Next 2Y8.38%
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 Year3.32%
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 Year233.25%
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 8 / 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 35.79 and the Price/Book (PB) ratio is 2.07.
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 7.02% in the next year.