HEALTHSTREAM INC (HSTM) Fundamental Analysis & Valuation

NASDAQ:HSTM • US42222N1037

Current stock price

21.31 USD
+0.41 (+1.96%)
At close:
21.31 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.
  • 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.
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

  • HSTM has a better Return On Assets (3.52%) than 82.86% of its industry peers.
  • Looking at the Return On Equity, with a value of 5.18%, HSTM belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
  • HSTM has a better Return On Invested Capital (4.08%) than 77.14% of its industry peers.
  • HSTM had an Average Return On Invested Capital over the past 3 years of 3.91%. This is below the industry average of 7.46%.
  • 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

  • With an excellent Profit Margin value of 6.03%, HSTM belongs to the best 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 77.14% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HSTM has remained more or less at the same level.
  • With a Gross Margin value of 64.74%, HSTM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
  • 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

  • HSTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for HSTM has been reduced compared to 1 year ago.
  • 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.
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

  • HSTM has an Altman-Z score of 3.24. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
  • HSTM's Altman-Z score of 3.24 is fine compared to the rest of the industry. HSTM outperforms 77.14% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.24
ROIC/WACC0.45
WACC8.99%
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.
  • The Current ratio of HSTM (0.96) is worse than 85.71% of its industry peers.
  • HSTM has a Quick 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.
  • HSTM's Quick ratio of 0.96 is on the low side compared to the rest of the industry. HSTM is outperformed by 85.71% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. HSTM Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.06% over the past year.
  • Measured over the past years, HSTM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.23% on average per year.
  • HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
  • HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
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

  • The Earnings Per Share is expected to grow by 9.31% on average over the next years. This is quite good.
  • HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y6.66%
EPS Next 2Y9.31%
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 EPS growth rate is decreasing: in the next years the growth will be less than in the last 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

  • Based on the Price/Earnings ratio of 30.44, the valuation of HSTM can be described as expensive.
  • 71.43% of the companies in the same industry are more expensive than HSTM, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, HSTM is valued at the same level.
  • The Price/Forward Earnings ratio is 28.54, which means the current valuation is very expensive for HSTM.
  • HSTM's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. HSTM is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 30.44
Fwd PE 28.54
HSTM Price Earnings VS Forward Price EarningsHSTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 65.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.05
EV/EBITDA 8.39
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 an expensive valuation of the company.
  • The decent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)4.57
PEG (5Y)1.88
EPS Next 2Y9.31%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. HSTM Dividend Analysis

5.1 Amount

  • HSTM has a yearly dividend return of 0.60%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.57, HSTM pays a better dividend. On top of this HSTM pays more dividend than 91.43% of the companies listed in the same industry.
  • With a Dividend Yield of 0.60, HSTM pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.6%

5.2 History

  • The dividend of HSTM is nicely growing with an annual growth rate of 148.95%!
  • 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 Years2
Div Non Decr Years2
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

  • 20.33% 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.
DP20.33%
EPS Next 2Y9.31%
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 (4/24/2026, 8:00:01 PM)

After market: 21.31 0 (0%)

21.31

+0.41 (+1.96%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-23
Earnings (Next)04-27
Inst Owners74.13%
Inst Owner Change-0.15%
Ins Owners17.27%
Ins Owner Change-21.88%
Market Cap624.60M
Revenue(TTM)304.06M
Net Income(TTM)18.34M
Analysts78.18
Price Target21.42 (0.52%)
Short Float %3.73%
Short Ratio2.53
Dividend
Industry RankSector Rank
Dividend Yield 0.6%
Yearly Dividend0.12
Dividend Growth(5Y)148.95%
DP20.33%
Div Incr Years2
Div Non Decr Years2
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)-35.38%
PT rev (3m)-35.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)-2.4%
EPS NY rev (3m)-3.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.49%
Valuation
Industry RankSector Rank
PE 30.44
Fwd PE 28.54
P/S 2.05
P/FCF 20.05
P/OCF 9.86
P/B 1.76
P/tB 24.03
EV/EBITDA 8.39
EPS(TTM)0.7
EY3.28%
EPS(NY)0.75
Fwd EY3.5%
FCF(TTM)1.06
FCFY4.99%
OCF(TTM)2.16
OCFY10.14%
SpS10.37
BVpS12.08
TBVpS0.89
PEG (NY)4.57
PEG (5Y)1.88
Graham Number13.7927 (-35.28%)
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 3.24
F-Score6
WACC8.99%
ROIC/WACC0.45
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 Y6.66%
EPS Next 2Y9.31%
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 Year261.77%
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.


How profitable is HEALTHSTREAM INC (HSTM) stock?

HEALTHSTREAM INC (HSTM) has a profitability rating of 7 / 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 30.44 and the Price/Book (PB) ratio is 1.76.


Can you provide the dividend sustainability for HSTM stock?

The dividend rating of HEALTHSTREAM INC (HSTM) is 4 / 10 and the dividend payout ratio is 20.33%.