HEALTHSTREAM INC (HSTM)
US42222N1037 - Common Stock
HSTM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 40 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. This makes HSTM very considerable for quality investing!
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.
In the past 5 years HSTM has always been profitable.
In the past 5 years HSTM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HSTM (3.48%) is better than 89.74% of its industry peers.
HSTM's Return On Equity of 5.17% is amongst the best of the industry. HSTM outperforms 89.74% of its industry peers.
HSTM has a Return On Invested Capital of 3.90%. This is amongst the best in the industry. HSTM outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HSTM is below the industry average of 5.56%.
The last Return On Invested Capital (3.90%) for HSTM is above the 3 year average (2.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 5.17% | ||
| ROIC | 3.9% |
ROA(3y)2.22%
ROA(5y)2.54%
ROE(3y)3.27%
ROE(5y)3.74%
ROIC(3y)2.54%
ROIC(5y)2.8%
1.3 Margins
HSTM's Profit Margin of 6.30% is amongst the best of the industry. HSTM outperforms 89.74% of its industry peers.
HSTM's Profit Margin has declined in the last couple of years.
HSTM has a Operating Margin of 6.65%. This is amongst the best in the industry. HSTM outperforms 89.74% of its industry peers.
HSTM's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 66.14%, HSTM is doing good in the industry, outperforming 64.10% of the companies in the same industry.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.65% | ||
| PM (TTM) | 6.3% | ||
| GM | 66.14% |
OM growth 3Y-3.83%
OM growth 5Y-3.02%
PM growth 3Y-1.82%
PM growth 5Y-17.08%
GM growth 3Y1.26%
GM growth 5Y2.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSTM is destroying value.
HSTM has less shares outstanding than it did 1 year ago.
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
HSTM has an Altman-Z score of 3.96. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
HSTM has a better Altman-Z score (3.96) than 87.18% of its industry peers.
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 | 3.96 |
ROIC/WACC0.35
WACC11.1%
2.3 Liquidity
A Current Ratio of 1.17 indicates that HSTM should not have too much problems paying its short term obligations.
The Current ratio of HSTM (1.17) is comparable to the rest of the industry.
A Quick Ratio of 1.17 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM's Quick ratio of 1.17 is in line compared to the rest of the industry. HSTM outperforms 43.59% of its industry peers.
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 | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
HSTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.72%, which is quite impressive.
HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.55% yearly.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 4.61% in the last year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)48.72%
EPS 3Y14.86%
EPS 5Y3.55%
EPS Q2Q%88.89%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y4.46%
Revenue growth 5Y3.8%
Sales Q2Q%5.53%
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 17.74% yearly.
HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y10.16%
EPS Next 2Y10.63%
EPS Next 3Y17.74%
EPS Next 5YN/A
Revenue Next Year4.85%
Revenue Next 2Y5.16%
Revenue Next 3Y5.71%
Revenue Next 5Y6.6%
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
With a Price/Earnings ratio of 47.05, HSTM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 76.92% of the companies listed in the same industry.
HSTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.05.
Based on the Price/Forward Earnings ratio of 44.59, the valuation of HSTM can be described as expensive.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HSTM to the average of the S&P500 Index (20.07), we can say HSTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.05 | ||
| Fwd PE | 44.59 |
4.2 Price Multiples
HSTM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSTM is cheaper than 89.74% of the companies in the same industry.
82.05% of the companies in the same industry are more expensive than HSTM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.39 | ||
| EV/EBITDA | 11.79 |
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.
HSTM's earnings are expected to grow with 17.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.63
PEG (5Y)13.26
EPS Next 2Y10.63%
EPS Next 3Y17.74%
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 32.91, HSTM pays a better dividend. On top of this HSTM pays more dividend than 89.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of HSTM decreases each year by -36.96%.
HSTM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-36.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HSTM pays out 21.93% of its income as dividend. This is a sustainable payout ratio.
DP21.93%
EPS Next 2Y10.63%
EPS Next 3Y17.74%
HEALTHSTREAM INC
NASDAQ:HSTM (5/31/2024, 7:00:02 PM)
After market: 27.29 0 (0%)27.29
+0.12 (+0.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap829.62M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.05 | ||
| Fwd PE | 44.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.63
PEG (5Y)13.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 5.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.65% | ||
| PM (TTM) | 6.3% | ||
| GM | 66.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)48.72%
EPS 3Y14.86%
EPS 5Y
EPS Q2Q%
EPS Next Y10.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.61%
Revenue growth 3Y4.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y