HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis

NASDAQ:HSTM • US42222N1037

21.24 USD
+0.89 (+4.37%)
At close: Feb 23, 2026
20.99 USD
-0.25 (-1.18%)
After Hours: 2/23/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

HSTM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Health Care Technology industry. Both the health and profitability get an excellent rating, making HSTM a very profitable company, without any liquidiy or solvency issues. HSTM has a correct valuation and a medium growth rate. This makes HSTM very considerable for quality investing!


Dividend Valuation Growth Profitability Health

8

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.
  • 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 20M 40M 60M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.14%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 5.93%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
  • The Return On Invested Capital of HSTM (4.73%) is better than 77.14% 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 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 RankSector 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%
HSTM Yearly ROA, ROE, ROICHSTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • HSTM's Profit Margin of 6.93% is amongst the best of 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 has a Operating Margin of 7.54%. This is in the better half 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.
  • HSTM's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
HSTM Yearly Profit, Operating, Gross MarginsHSTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • 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.
HSTM Yearly Shares OutstandingHSTM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 100M 200M 300M 400M 500M

2.2 Solvency

  • An Altman-Z score of 3.58 indicates that HSTM is not in any danger for bankruptcy at the moment.
  • HSTM has a Altman-Z score of 3.58. This is in the better half of the industry: HSTM outperforms 80.00% 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 3.58
ROIC/WACC0.51
WACC9.34%
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 100M 200M 300M

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 RankSector Rank
Current Ratio 1.31
Quick Ratio 1.31
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 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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%.
  • HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.96% yearly.
  • HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.68%.
  • Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 2.79% on average per year.
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 12.85% on average per year.
  • The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y-2.02%
EPS Next 2Y8.52%
EPS Next 3Y12.85%
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.
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. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 31.24 indicates a quite expensive valuation of HSTM.
  • 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.
  • HSTM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.64.
  • HSTM is valuated quite expensively with a Price/Forward Earnings ratio of 27.33.
  • HSTM's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, HSTM is valued at the same level.
Industry RankSector Rank
PE 31.24
Fwd PE 27.33
HSTM Price Earnings VS Forward Price EarningsHSTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 88.57% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.69
EV/EBITDA 7.22
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 excellent profitability rating of HSTM may justify a higher PE ratio.
  • A more expensive valuation may be justified as HSTM's earnings are expected to grow with 12.85% in the coming years.
PEG (NY)N/A
PEG (5Y)3.92
EPS Next 2Y8.52%
EPS Next 3Y12.85%

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

4

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.61%, HSTM is not a good candidate for dividend investing.
  • HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.59. HSTM pays more dividend than 94.29% of the companies in the same industry.
  • With a Dividend Yield of 0.61, HSTM pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.61%

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
HSTM Yearly Dividends per shareHSTM Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

  • HSTM pays out 17.69% of its income as dividend. This is a 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 3Y12.85%
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 10M 20M 30M
HSTM Dividend Payout.HSTM Dividend Payout, showing the Payout Ratio.HSTM Dividend Payout.PayoutRetained Earnings

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HEALTHSTREAM INC

NASDAQ:HSTM (2/23/2026, 8:00:02 PM)

After market: 20.99 -0.25 (-1.18%)

21.24

+0.89 (+4.37%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)11-03
Earnings (Next)02-23
Inst Owners73.96%
Inst Owner Change-1.97%
Ins Owners18.69%
Ins Owner Change-22.51%
Market Cap630.19M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target33.15 (56.07%)
Short Float %3.98%
Short Ratio3.31
Dividend
Industry RankSector Rank
Dividend Yield 0.61%
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)0%
PT rev (3m)-4.41%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-2.76%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 31.24
Fwd PE 27.33
P/S 2.11
P/FCF 21.69
P/OCF 10.28
P/B 1.8
P/tB 9.48
EV/EBITDA 7.22
EPS(TTM)0.68
EY3.2%
EPS(NY)0.78
Fwd EY3.66%
FCF(TTM)0.98
FCFY4.61%
OCF(TTM)2.07
OCFY9.73%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)N/A
PEG (5Y)3.92
Graham Number13.42
Profitability
Industry RankSector 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 RankSector 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 3.58
F-Score7
WACC9.34%
ROIC/WACC0.51
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 Y-2.02%
EPS Next 2Y8.52%
EPS Next 3Y12.85%
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 31.24 and the Price/Book (PB) ratio is 1.8.


What is the earnings growth outlook for HEALTHSTREAM INC?

The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to decline by -2.02% in the next year.