21.39 USD
-0.08 (-0.37%)
21.39 USD
0 (0%)
Overall HSTM gets a fundamental rating of 6 out of 10. We evaluated HSTM against 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, HSTM could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year HSTM was profitable.
- In the past year HSTM had a positive cash flow from operations.
- 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 4.14%. This is amongst the best in the industry. HSTM outperforms 94.29% of its industry peers.
- HSTM's Return On Equity of 5.93% is amongst the best of the industry. HSTM outperforms 94.29% of its industry peers.
- HSTM has a better Return On Invested Capital (4.73%) than 77.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- With an excellent Profit Margin value of 6.93%, 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 grown nicely.
- HSTM has a Operating Margin of 7.54%. This is in the better half of the industry: HSTM outperforms 80.00% of its industry peers.
- In the last couple of years the Operating Margin of HSTM has grown nicely.
- With a Gross Margin value of 65.35%, HSTM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- HSTM's Gross Margin has improved in the last couple of years.
| 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.
- 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
- An Altman-Z score of 3.70 indicates that HSTM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HSTM (3.70) is better 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 | 3.7 |
ROIC/WACC0.49
WACC9.66%
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.
- HSTM has a Current ratio of 1.31. This is in the lower half of the industry: HSTM underperforms 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
- HSTM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.62%.
- 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.
- The Revenue has been growing slightly by 2.79% on average over the past years.
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
- Based on estimates for the next years, HSTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.23% on average per year.
- Based on estimates for the next years, HSTM will show a small growth in Revenue. The Revenue will grow by 4.27% on average per year.
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
- With a Price/Earnings ratio of 31.46, HSTM can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 74.29% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HSTM to the average of the S&P500 Index (27.21), we can say HSTM is valued inline with the index average.
- The Price/Forward Earnings ratio is 27.52, which means the current valuation is very expensive for HSTM.
- Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of HSTM to the average of the S&P500 Index (25.98), we can say HSTM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.46 | ||
| Fwd PE | 27.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
- 74.29% 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 | 21.84 | ||
| 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.
- A more expensive valuation may be justified as HSTM's earnings are expected to grow with 15.23% in the coming years.
PEG (NY)41.19
PEG (5Y)3.95
EPS Next 2Y8.52%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.58%, HSTM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.54, 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 0.58, HSTM pays less dividend than the S&P500 average, which is at 1.81.
| 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.
- 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%
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 31.46 and the Price/Book (PB) ratio is 1.82.
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.