21.81 USD
+0.42 (+1.96%)
21.81 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HSTM. HSTM was compared to 34 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.
- HSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HSTM (4.14%) is better than 94.12% 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 94.12% of the companies in the same industry.
- HSTM has a better Return On Invested Capital (4.73%) than 76.47% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.63%.
- The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.73%), indicating increased profibility in the last year.
| 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 91.18% of the companies in the same industry.
- HSTM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 7.54%, HSTM is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- HSTM's Operating Margin has improved in the last couple of years.
- HSTM's Gross Margin of 65.35% is fine compared to the rest of the industry. HSTM outperforms 61.76% of its industry peers.
- In the last couple of years the Gross Margin of HSTM has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
- HSTM has more 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 3.70. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
- HSTM has a Altman-Z score of 3.70. This is in the better half of the industry: HSTM outperforms 79.41% 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 | 3.7 |
ROIC/WACC0.5
WACC9.44%
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.
- Looking at the Current ratio, with a value of 1.31, HSTM is doing worse than 67.65% of the companies in the same industry.
- A Quick Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
- HSTM has a Quick ratio of 1.31. This is in the lower half of the industry: HSTM underperforms 67.65% of its industry peers.
- HSTM does not score too well on the current and quick ratio evaluation. However, as it has 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%.
- Measured over the past 5 years, HSTM shows a small growth in Earnings Per Share. The EPS has been growing by 7.96% on average per year.
- The Revenue has been growing slightly by 3.68% in the past year.
- HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
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 15.23% 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 4.27% yearly.
EPS Next Y0.76%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue Next Year3.32%
Revenue Next 2Y4.1%
Revenue Next 3Y4.35%
Revenue Next 5Y4.27%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- The Price/Earnings ratio is 32.07, 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 73.53% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. HSTM is around the same levels.
- Based on the Price/Forward Earnings ratio of 28.06, the valuation of HSTM can be described as expensive.
- Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than 61.76% of the companies in the same industry.
- HSTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.07 | ||
| Fwd PE | 28.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 91.18% 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 73.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.27 | ||
| EV/EBITDA | 7.69 |
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 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)42
PEG (5Y)4.03
EPS Next 2Y8.52%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- HSTM has a yearly dividend return of 0.58%, which is pretty low.
- HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.54. HSTM pays more dividend than 91.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
- 17.69% 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.
DP17.69%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
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 for HSTM stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 32.07 and the Price/Book (PB) ratio is 1.85.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 0.76% in the next year.