HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
USA - NASDAQ:HSTM - US42222N1037 - Common Stock
24.54 USD
-0.11 (-0.45%)
24.54 USD
0 (0%)
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 has a correct valuation and a medium growth rate.
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.
In the past 5 years HSTM has always been profitable.
Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
HSTM's Return On Assets of 4.07% is amongst the best of the industry. HSTM outperforms 94.29% of its industry peers.
Looking at the Return On Equity, with a value of 5.80%, 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 (4.54%) is better than 82.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HSTM is below the industry average of 6.82%.
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
HSTM has a better Profit Margin (6.89%) than 91.43% of its industry peers.
HSTM's Profit Margin has improved in the last couple of years.
The Operating Margin of HSTM (7.27%) is better than 82.86% of its industry peers.
HSTM's Operating Margin has improved in the last couple of years.
HSTM has a Gross Margin (65.64%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
The number of shares outstanding for HSTM has been increased compared to 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
HSTM has an Altman-Z score of 4.06. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.06, HSTM is doing good in the industry, outperforming 77.14% 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 | 4.06 |
ROIC/WACC0.44
WACC10.24%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM has a Current ratio of 1.25. This is in the lower half of the industry: HSTM underperforms 74.29% of its industry peers.
HSTM has a Quick Ratio of 1.25. 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 Quick ratio, with a value of 1.25, HSTM is doing worse than 74.29% of the companies in the same industry.
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 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.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 4.51% in the last 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)4.51%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%4.62%
3.2 Future
The Earnings Per Share is expected to grow by 7.80% on average over the next years.
The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.1%
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.
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
A Price/Earnings ratio of 36.09 indicates a quite expensive valuation of HSTM.
Compared to the rest of the industry, the Price/Earnings ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 74.29% of the companies listed in the same industry.
HSTM is valuated rather expensively when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.99 indicates a quite expensive valuation of HSTM.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than 65.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, HSTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.09 | ||
| Fwd PE | 31.99 |
4.2 Price Multiples
HSTM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSTM is cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HSTM is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.6 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)13.02
PEG (5Y)4.53
EPS Next 2Y7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.50%, which is pretty low.
HSTM's Dividend Yield is rather good when compared to the industry average which is at 4.96. HSTM pays more dividend than 91.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of HSTM is nicely growing with an annual growth rate of 126.03%!
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 17.67% 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.
DP17.67%
EPS Next 2Y7.8%
EPS Next 3YN/A
24.54
-0.11 (-0.45%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners76.66%
Inst Owner Change-0.12%
Ins Owners21.03%
Ins Owner Change0.5%
Market Cap727.37M
Revenue(TTM)291.65M
Net Income(TTM)20.34M
Analysts78.18
Price Target34.68 (41.32%)
Short Float %3.66%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)0%
PT rev (3m)-1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.07%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.09 | ||
| Fwd PE | 31.99 | ||
| P/S | 2.46 | ||
| P/FCF | 23.6 | ||
| P/OCF | 11.66 | ||
| P/B | 2.07 | ||
| P/tB | 11.14 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)0.68
EY2.77%
EPS(NY)0.77
Fwd EY3.13%
FCF(TTM)1.04
FCFY4.24%
OCF(TTM)2.1
OCFY8.57%
SpS9.96
BVpS11.83
TBVpS2.2
PEG (NY)13.02
PEG (5Y)4.53
Graham Number13.45
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%
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 Turnover0.59
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 | 4.06 |
F-Score7
WACC10.24%
ROIC/WACC0.44
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 Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.51%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%4.62%
Revenue Next Year3.1%
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 Year230.54%
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%
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 of HEALTHSTREAM INC (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.
What is the valuation of HEALTHSTREAM INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 36.09 and the Price/Book (PB) ratio is 2.07.
What is the expected EPS growth for HEALTHSTREAM INC (HSTM) stock?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 2.77% in the next year.