HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
USA - NASDAQ:HSTM - US42222N1037 - Common Stock
29.345 USD
+0.34 (+1.19%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
HSTM had a positive operating cash flow in the past year.
Each year in the past 5 years HSTM has been profitable.
HSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HSTM has a Return On Assets of 4.07%. This is amongst the best in the industry. HSTM outperforms 94.29% of its industry peers.
With an excellent Return On Equity value of 5.80%, HSTM belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.54%, HSTM belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.80%.
The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 5.8% | ||
| ROIC | 4.54% |
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 6.89%, HSTM belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
HSTM's Profit Margin has improved in the last couple of years.
HSTM has a Operating Margin of 7.27%. This is amongst the best in the industry. HSTM outperforms 82.86% of its industry peers.
HSTM's Operating Margin has improved in the last couple of years.
HSTM's Gross Margin of 65.64% is fine compared to the rest of the industry. HSTM outperforms 65.71% of its industry peers.
In the last couple of years the Gross Margin of HSTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 6.89% | ||
| GM | 65.64% |
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
HSTM has less shares outstanding than it did 5 years ago.
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 4.58. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
HSTM has a better Altman-Z score (4.58) than 77.14% 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 | 4.58 |
ROIC/WACC0.48
WACC9.44%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HSTM should not have too much problems paying its short term obligations.
The Current ratio of HSTM (1.25) is worse than 68.57% of its industry peers.
A Quick Ratio of 1.25 indicates that HSTM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.25, HSTM is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
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 | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
HSTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.56%, which is quite good.
HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.96% yearly.
The Revenue has been growing slightly by 3.50% in the past year.
The Revenue has been growing slightly by 2.79% on average over the past years.
EPS 1Y (TTM)13.56%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%28.57%
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%3.97%
3.2 Future
The Earnings Per Share is expected to grow by 7.80% on average over the next years.
HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 43.80, HSTM can be considered very expensive at the moment.
HSTM's Price/Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 74.29% of the companies in the same industry.
HSTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 38.26 indicates a quite expensive valuation of 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 22.70. HSTM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.8 | ||
| Fwd PE | 38.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSTM indicates a rather cheap valuation: HSTM is cheaper than 82.86% of the companies listed in the same industry.
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 | 28.22 | ||
| EV/EBITDA | 11.48 |
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)15.8
PEG (5Y)5.5
EPS Next 2Y7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, HSTM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.73, HSTM pays a better dividend. On top of this HSTM pays more dividend than 94.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of HSTM is nicely growing with an annual growth rate of 126.03%!
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
17.67% 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.
DP17.67%
EPS Next 2Y7.8%
EPS Next 3YN/A
NASDAQ:HSTM (9/18/2025, 1:56:18 PM)
29.345
+0.34 (+1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners76.09%
Inst Owner Change-3.14%
Ins Owners20.43%
Ins Owner Change1.14%
Market Cap869.79M
Analysts78.18
Price Target34.68 (18.18%)
Short Float %3.77%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.55%
Min EPS beat(2)-12.02%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)15.49%
Min EPS beat(4)-12.02%
Max EPS beat(4)48.82%
EPS beat(8)7
Avg EPS beat(8)27.92%
EPS beat(12)11
Avg EPS beat(12)38.02%
EPS beat(16)15
Avg EPS beat(16)105.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.91%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-1.96%
Revenue beat(4)0
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-1.03%
Revenue beat(8)0
Avg Revenue beat(8)-2.49%
Revenue beat(12)0
Avg Revenue beat(12)-2.26%
Revenue beat(16)0
Avg Revenue beat(16)-2.16%
PT rev (1m)-1.45%
PT rev (3m)-1.45%
EPS NQ rev (1m)5.6%
EPS NQ rev (3m)5.07%
EPS NY rev (1m)3.5%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.8 | ||
| Fwd PE | 38.26 | ||
| P/S | 2.95 | ||
| P/FCF | 28.22 | ||
| P/OCF | 13.95 | ||
| P/B | 2.48 | ||
| P/tB | 13.32 | ||
| EV/EBITDA | 11.48 |
EPS(TTM)0.67
EY2.28%
EPS(NY)0.77
Fwd EY2.61%
FCF(TTM)1.04
FCFY3.54%
OCF(TTM)2.1
OCFY7.17%
SpS9.96
BVpS11.83
TBVpS2.2
PEG (NY)15.8
PEG (5Y)5.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 5.8% | ||
| ROCE | 5.58% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 197.11% | ||
| OM | 7.27% | ||
| PM (TTM) | 6.89% | ||
| GM | 65.64% | ||
| FCFM | 10.44% |
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%
ROICexcg growth 3Y117.94%
ROICexcg 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.83% | ||
| Cap/Sales | 10.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.05% | ||
| Profit Quality | 151.56% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 4.58 |
F-Score7
WACC9.44%
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)13.56%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%28.57%
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%3.97%
Revenue Next Year3.09%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
EBIT growth 1Y11.64%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year230.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y40.67%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y28.07%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%