20.09 USD
-0.21 (-1.03%)
At close: Feb 6, 2026
20.09 USD
0 (0%)
After Hours: 2/6/2026, 8:00:01 PM
We assign a fundamental rating of 6 out of 10 to HSTM. HSTM was compared to 35 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make HSTM suitable 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.
- HSTM had positive earnings in each of the past 5 years.
- HSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 4.14%, HSTM belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
- The Return On Equity of HSTM (5.93%) is better than 94.29% of its industry peers.
- The Return On Invested Capital of HSTM (4.73%) is better than 77.14% of its industry peers.
- HSTM had an Average Return On Invested Capital over the past 3 years of 3.49%. This is below the industry average of 6.63%.
- The last Return On Invested Capital (4.73%) for HSTM is above the 3 year average (3.49%), which is a sign of increasing profitability.
| 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
- HSTM has a Profit Margin of 6.93%. This is amongst the best in the industry. HSTM outperforms 91.43% of its industry peers.
- In the last couple of years the Profit Margin of HSTM has grown nicely.
- HSTM's Operating Margin of 7.54% is fine compared to the rest of the industry. HSTM outperforms 80.00% of its industry peers.
- HSTM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 65.35%, HSTM is in line with its industry, outperforming 60.00% of the companies in the same industry.
- 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
- HSTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- HSTM has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HSTM has been reduced compared to 5 years ago.
- 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.
2.2 Solvency
- An Altman-Z score of 3.57 indicates that HSTM is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.57, HSTM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- 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 | 3.57 |
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.
- The Current ratio of HSTM (1.31) is worse than 68.57% of its industry peers.
- HSTM has a Quick 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.
- HSTM has a Quick ratio of 1.31. This is in the lower half of the industry: HSTM underperforms 68.57% 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 | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.62% over the past year.
- The Earnings Per Share has been growing slightly by 7.96% on average over the past years.
- 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
- HSTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.23% yearly.
- The Revenue is expected to grow by 4.27% on average over the next years.
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
- 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
- Based on the Price/Earnings ratio of 29.54, the valuation of HSTM can be described as expensive.
- Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.92, HSTM is valued at the same level.
- The Price/Forward Earnings ratio is 25.85, which means the current valuation is very expensive for HSTM.
- HSTM's Price/Forward Earnings ratio is in line with the industry average.
- HSTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 25.85 |
4.2 Price Multiples
- 88.57% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.51 | ||
| EV/EBITDA | 7.19 |
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 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)38.69
PEG (5Y)3.71
EPS Next 2Y8.52%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.56%, HSTM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.60, HSTM pays a better dividend. On top of this HSTM pays more dividend than 91.43% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
- On average, the dividend of HSTM grows each year by 126.03%, which is quite nice.
- HSTM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)126.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- HSTM pays out 17.69% of its income as dividend. This is a sustainable payout ratio.
- HSTM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.69%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
20.09
-0.21 (-1.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners73.96%
Inst Owner Change-3.61%
Ins Owners18.69%
Ins Owner Change-22.54%
Market Cap596.07M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target33.15 (65.01%)
Short Float %3.27%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.69%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.27%
Min EPS beat(2)11.41%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)6.14%
Min EPS beat(4)-12.02%
Max EPS beat(4)13.12%
EPS beat(8)7
Avg EPS beat(8)23.32%
EPS beat(12)11
Avg EPS beat(12)28.45%
EPS beat(16)15
Avg EPS beat(16)69.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-0.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)0
Avg Revenue beat(12)-2.02%
Revenue beat(16)0
Avg Revenue beat(16)-2.2%
PT rev (1m)-4.41%
PT rev (3m)-4.41%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)-40.22%
EPS NY rev (1m)-2.32%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 25.85 | ||
| P/S | 2 | ||
| P/FCF | 20.51 | ||
| P/OCF | 9.73 | ||
| P/B | 1.71 | ||
| P/tB | 8.96 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)0.68
EY3.38%
EPS(NY)0.78
Fwd EY3.87%
FCF(TTM)0.98
FCFY4.88%
OCF(TTM)2.07
OCFY10.28%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)38.69
PEG (5Y)3.71
Graham Number13.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 5.93% | ||
| ROCE | 5.81% | ||
| ROIC | 4.73% | ||
| ROICexc | 6.22% | ||
| ROICexgc | 150.89% | ||
| OM | 7.54% | ||
| PM (TTM) | 6.93% | ||
| GM | 65.35% | ||
| FCFM | 9.73% |
ROA(3y)3.13%
ROA(5y)2.68%
ROE(3y)4.55%
ROE(5y)3.92%
ROIC(3y)3.49%
ROIC(5y)3.11%
ROICexc(3y)4.37%
ROICexc(5y)3.79%
ROICexgc(3y)138.4%
ROICexgc(5y)96.34%
ROCE(3y)4.28%
ROCE(5y)3.82%
ROICexgc growth 3Y117.94%
ROICexgc 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 75.11% | ||
| Cap/Sales | 10.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.68% | ||
| Profit Quality | 140.41% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.57 |
F-Score7
WACC9.44%
ROIC/WACC0.5
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)4.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%5.26%
EPS Next Y0.76%
EPS Next 2Y8.52%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue 1Y (TTM)3.68%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%4.62%
Revenue Next Year3.32%
Revenue Next 2Y4.1%
Revenue Next 3Y4.35%
Revenue Next 5Y4.27%
EBIT growth 1Y7.99%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year229.22%
EBIT Next 3Y57.41%
EBIT Next 5YN/A
FCF growth 1Y-5.41%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y5.18%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%
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 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 8 / 10.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 29.54 and the Price/Book (PB) ratio is 1.71.
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.