HEALTHSTREAM INC (HSTM) Fundamental Analysis & Valuation

NASDAQ:HSTM • US42222N1037

Current stock price

20.34 USD
-0.22 (-1.07%)
At close:
20.34 USD
0 (0%)
After Hours:

This HSTM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. HSTM Profitability Analysis

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.
  • Each year in the past 5 years HSTM had a positive operating cash flow.
HSTM Yearly Net Income VS EBIT VS OCF VS FCFHSTM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.52%, HSTM belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
  • HSTM has a Return On Equity of 5.18%. This is amongst the best in the industry. HSTM outperforms 82.86% of its industry peers.
  • HSTM's Return On Invested Capital of 4.08% is fine compared to the rest of the industry. HSTM outperforms 77.14% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HSTM is below the industry average of 7.41%.
  • The last Return On Invested Capital (4.08%) for HSTM is above the 3 year average (3.91%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.52%
ROE 5.18%
ROIC 4.08%
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
HSTM Yearly ROA, ROE, ROICHSTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 6.03%, 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 remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 6.65%, HSTM is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
  • HSTM's Operating Margin has been stable in the last couple of years.
  • HSTM has a Gross Margin of 64.74%. This is comparable to the rest of the industry: HSTM outperforms 57.14% of its industry peers.
  • In the last couple of years the Gross Margin of HSTM has remained more or less at the same level.
Industry RankSector Rank
OM 6.65%
PM (TTM) 6.03%
GM 64.74%
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
HSTM Yearly Profit, Operating, Gross MarginsHSTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. HSTM Health Analysis

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
  • 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.
HSTM Yearly Shares OutstandingHSTM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
HSTM Yearly Total Debt VS Total AssetsHSTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

2.2 Solvency

  • An Altman-Z score of 3.19 indicates that HSTM is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of HSTM (3.19) is better than 74.29% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.19
ROIC/WACC0.42
WACC9.71%
HSTM Yearly LT Debt VS Equity VS FCFHSTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

2.3 Liquidity

  • HSTM has a Current Ratio of 0.96. This is a bad value and indicates that HSTM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.96, HSTM is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
  • The Quick ratio of HSTM (0.96) is worse than 82.86% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.96
HSTM Yearly Current Assets VS Current LiabilitesHSTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

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4

3. HSTM Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.06% over the past year.
  • HSTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
  • HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
  • Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 4.43% on average per year.
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%

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 11.94% on average per year.
  • HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y9.29%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.55%
Revenue Next 2Y6.82%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
HSTM Yearly Revenue VS EstimatesHSTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 100M 200M 300M 400M
HSTM Yearly EPS VS EstimatesHSTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8

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4

4. HSTM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.06, which means the current valuation is very expensive for HSTM.
  • HSTM's Price/Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 68.57% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, HSTM is valued at the same level.
  • A Price/Forward Earnings ratio of 26.59 indicates a quite expensive valuation of HSTM.
  • Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than 62.86% of the companies in the same industry.
  • HSTM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.06
Fwd PE 26.59
HSTM Price Earnings VS Forward Price EarningsHSTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 80.00% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.17
EV/EBITDA 8.15
HSTM Per share dataHSTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)1.79
EPS Next 2Y11.94%
EPS Next 3YN/A

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4

5. HSTM Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.62%, 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 0.59. HSTM pays more dividend than 94.29% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, HSTM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.62%

5.2 History

  • On average, the dividend of HSTM grows each year by 148.95%, 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)148.95%
Div Incr Years1
Div Non Decr Years1
HSTM Yearly Dividends per shareHSTM Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2026 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

  • HSTM pays out 20.33% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of HSTM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.33%
EPS Next 2Y11.94%
EPS Next 3YN/A
HSTM Yearly Income VS Free CF VS DividendHSTM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
HSTM Dividend Payout.HSTM Dividend Payout, showing the Payout Ratio.HSTM Dividend Payout.PayoutRetained Earnings

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HSTM Fundamentals: All Metrics, Ratios and Statistics

HEALTHSTREAM INC

NASDAQ:HSTM (3/20/2026, 8:00:01 PM)

After market: 20.34 0 (0%)

20.34

-0.22 (-1.07%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-23
Earnings (Next)05-04
Inst Owners73.32%
Inst Owner Change-1.94%
Ins Owners16.99%
Ins Owner Change-22.14%
Market Cap597.18M
Revenue(TTM)304.06M
Net Income(TTM)18.34M
Analysts78.18
Price Target33.15 (62.98%)
Short Float %5.17%
Short Ratio3.53
Dividend
Industry RankSector Rank
Dividend Yield 0.62%
Yearly Dividend0.12
Dividend Growth(5Y)148.95%
DP20.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.92%
Min EPS beat(2)11.41%
Max EPS beat(2)60.43%
EPS beat(4)3
Avg EPS beat(4)18.24%
Min EPS beat(4)-12.02%
Max EPS beat(4)60.43%
EPS beat(8)7
Avg EPS beat(8)25.3%
EPS beat(12)11
Avg EPS beat(12)29.71%
EPS beat(16)15
Avg EPS beat(16)53.52%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)2.56%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)2.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.5%
Revenue beat(12)1
Avg Revenue beat(12)-1.71%
Revenue beat(16)1
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)-4.41%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)1.56%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)3.49%
Revenue NQ rev (3m)3.49%
Revenue NY rev (1m)3.49%
Revenue NY rev (3m)3.49%
Valuation
Industry RankSector Rank
PE 29.06
Fwd PE 26.59
P/S 1.96
P/FCF 19.17
P/OCF 9.43
P/B 1.69
P/tB 22.97
EV/EBITDA 8.15
EPS(TTM)0.7
EY3.44%
EPS(NY)0.77
Fwd EY3.76%
FCF(TTM)1.06
FCFY5.22%
OCF(TTM)2.16
OCFY10.6%
SpS10.36
BVpS12.06
TBVpS0.89
PEG (NY)3.13
PEG (5Y)1.79
Graham Number13.78
Profitability
Industry RankSector Rank
ROA 3.52%
ROE 5.18%
ROCE 5.11%
ROIC 4.08%
ROICexc 4.76%
ROICexgc 144.29%
OM 6.65%
PM (TTM) 6.03%
GM 64.74%
FCFM 10.25%
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
ROICexc(3y)4.86%
ROICexc(5y)3.91%
ROICexgc(3y)162.5%
ROICexgc(5y)114.53%
ROCE(3y)4.9%
ROCE(5y)4.01%
ROICexgc growth 3Y31.22%
ROICexgc growth 5Y26.84%
ROICexc growth 3Y16.25%
ROICexc growth 5Y4.77%
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
F-Score6
Asset Turnover0.58
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 73.98%
Cap/Sales 10.58%
Interest Coverage 200.35
Cash Conversion 99.38%
Profit Quality 169.87%
Current Ratio 0.96
Quick Ratio 0.96
Altman-Z 3.19
F-Score6
WACC9.71%
ROIC/WACC0.42
Cap/Depr(3y)70.13%
Cap/Depr(5y)69.08%
Cap/Sales(3y)10.09%
Cap/Sales(5y)9.91%
Profit Quality(3y)184.6%
Profit Quality(5y)212.64%
High Growth Momentum
Growth
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
EPS Next Y9.29%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%
Revenue Next Year8.55%
Revenue Next 2Y6.82%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%
EBIT growth 1Y-4.95%
EBIT growth 3Y17.73%
EBIT growth 5Y5.07%
EBIT Next Year266.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.55%
FCF growth 3Y6.09%
FCF growth 5Y12.79%
OCF growth 1Y9.81%
OCF growth 3Y7.35%
OCF growth 5Y12.04%

HEALTHSTREAM INC / HSTM Fundamental Analysis FAQ

What is the fundamental rating for HSTM stock?

ChartMill assigns a fundamental rating of 5 / 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 7 / 10.


Can you provide the PE and PB ratios for HSTM stock?

The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 29.06 and the Price/Book (PB) ratio is 1.69.


What is the earnings growth outlook for HEALTHSTREAM INC?

The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 9.29% in the next year.