HEALTHSTREAM INC (HSTM) Fundamental Analysis & Valuation
NASDAQ:HSTM • US42222N1037
21.48 USD
-0.98 (-4.36%)
At close: Mar 10, 2026
21.48 USD
0 (0%)
After Hours: 3/10/2026, 4:30:01 PM
This HSTM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to HSTM. HSTM was compared to 35 industry peers in the Health Care Technology industry. While HSTM has a great profitability rating, there are some minor concerns on its financial health. HSTM has a decent growth rate and is not valued too expensively.
1. HSTM Profitability Analysis
1.1 Basic Checks
- In the past year HSTM was profitable.
- HSTM had a positive operating cash flow in the past year.
- In the past 5 years HSTM has always been profitable.
- In the past 5 years HSTM always reported a positive cash flow from operatings.
1.2 Ratios
- HSTM has a better Return On Assets (3.52%) than 94.29% of its industry peers.
- With an excellent Return On Equity value of 5.18%, HSTM belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
- The Return On Invested Capital of HSTM (4.08%) is better than 71.43% of its industry peers.
- HSTM had an Average Return On Invested Capital over the past 3 years of 3.91%. This is below the industry average of 7.13%.
- The last Return On Invested Capital (4.08%) for HSTM is above the 3 year average (3.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 5.18% | ||
| ROIC | 4.08% |
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
1.3 Margins
- The Profit Margin of HSTM (6.03%) is better than 91.43% of its industry peers.
- In the last couple of years the Profit Margin of HSTM has remained more or less at the same level.
- HSTM has a better Operating Margin (6.65%) than 74.29% of its industry peers.
- In the last couple of years the Operating Margin of HSTM has remained more or less at the same level.
- HSTM has a Gross Margin (64.74%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of HSTM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.65% | ||
| PM (TTM) | 6.03% | ||
| GM | 64.74% |
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
2. HSTM Health Analysis
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.
- Compared to 1 year ago, HSTM has less shares outstanding
- Compared to 5 years ago, HSTM has less shares outstanding
- 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
- HSTM has an Altman-Z score of 3.41. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
- HSTM has a better Altman-Z score (3.41) than 80.00% 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 | 3.41 |
ROIC/WACC0.43
WACC9.41%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
- The Current ratio of HSTM (0.96) is worse than 80.00% of its industry peers.
- A Quick Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
- HSTM has a Quick ratio of 0.96. This is amonst the worse of the industry: HSTM underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. HSTM Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.06% over the past year.
- The Earnings Per Share has been growing by 16.23% on average over the past years. This is quite good.
- HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
- Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 4.43% on average per year.
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%
3.2 Future
- The Earnings Per Share is expected to grow by 11.94% on average over the next years. This is quite good.
- Based on estimates for the next years, HSTM will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y9.29%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.05%
Revenue Next 2Y6.47%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. HSTM Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 30.69 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.
- Compared to an average S&P500 Price/Earnings ratio of 26.45, HSTM is valued at the same level.
- HSTM is valuated quite expensively with a Price/Forward Earnings ratio of 28.08.
- HSTM's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of HSTM to the average of the S&P500 Index (24.65), we can say HSTM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.69 | ||
| Fwd PE | 28.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaper than 82.86% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.24 | ||
| EV/EBITDA | 9.13 |
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.
- The decent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)1.89
EPS Next 2Y11.94%
EPS Next 3YN/A
5. HSTM Dividend Analysis
5.1 Amount
- HSTM has a yearly dividend return of 0.58%, which is pretty low.
- 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 1.82, 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 148.87%!
- HSTM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)148.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- HSTM pays out 20.33% 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.
DP20.33%
EPS Next 2Y11.94%
EPS Next 3YN/A
HSTM Fundamentals: All Metrics, Ratios and Statistics
21.48
-0.98 (-4.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-23 2026-02-23/amc
Earnings (Next)05-04 2026-05-04
Inst Owners73.32%
Inst Owner Change-1.94%
Ins Owners16.99%
Ins Owner Change-22.14%
Market Cap630.65M
Revenue(TTM)304.06M
Net Income(TTM)18.34M
Analysts78.18
Price Target33.15 (54.33%)
Short Float %5.45%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.12
Dividend Growth(5Y)148.87%
DP20.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-09 2026-03-09 (0.035)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.92%
Min EPS beat(2)11.41%
Max EPS beat(2)60.43%
EPS beat(4)3
Avg EPS beat(4)18.24%
Min EPS beat(4)-12.02%
Max EPS beat(4)60.43%
EPS beat(8)7
Avg EPS beat(8)25.3%
EPS beat(12)11
Avg EPS beat(12)29.71%
EPS beat(16)15
Avg EPS beat(16)53.52%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)2.56%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)2.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.5%
Revenue beat(12)1
Avg Revenue beat(12)-1.71%
Revenue beat(16)1
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)-4.41%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)4.69%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)3.1%
Revenue NQ rev (3m)3.1%
Revenue NY rev (1m)3.01%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.69 | ||
| Fwd PE | 28.08 | ||
| P/S | 2.07 | ||
| P/FCF | 20.24 | ||
| P/OCF | 9.96 | ||
| P/B | 1.78 | ||
| P/tB | 24.26 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)0.7
EY3.26%
EPS(NY)0.77
Fwd EY3.56%
FCF(TTM)1.06
FCFY4.94%
OCF(TTM)2.16
OCFY10.04%
SpS10.36
BVpS12.06
TBVpS0.89
PEG (NY)3.3
PEG (5Y)1.89
Graham Number13.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 5.18% | ||
| ROCE | 5.11% | ||
| ROIC | 4.08% | ||
| ROICexc | 4.76% | ||
| ROICexgc | 144.29% | ||
| OM | 6.65% | ||
| PM (TTM) | 6.03% | ||
| GM | 64.74% | ||
| FCFM | 10.25% |
ROA(3y)3.49%
ROA(5y)2.82%
ROE(3y)5.07%
ROE(5y)4.11%
ROIC(3y)3.91%
ROIC(5y)3.2%
ROICexc(3y)4.86%
ROICexc(5y)3.91%
ROICexgc(3y)162.5%
ROICexgc(5y)114.53%
ROCE(3y)4.9%
ROCE(5y)4.01%
ROICexgc growth 3Y31.22%
ROICexgc growth 5Y26.84%
ROICexc growth 3Y16.25%
ROICexc growth 5Y4.77%
OM growth 3Y12.71%
OM growth 5Y0.62%
PM growth 3Y9.98%
PM growth 5Y0.93%
GM growth 3Y-0.57%
GM growth 5Y0.38%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 73.98% | ||
| Cap/Sales | 10.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.38% | ||
| Profit Quality | 169.86% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.41 |
F-Score6
WACC9.41%
ROIC/WACC0.43
Cap/Depr(3y)70.13%
Cap/Depr(5y)69.08%
Cap/Sales(3y)10.09%
Cap/Sales(5y)9.91%
Profit Quality(3y)184.6%
Profit Quality(5y)212.64%
High Growth Momentum
Growth
EPS 1Y (TTM)6.06%
EPS 3Y21.53%
EPS 5Y16.23%
EPS Q2Q%12.5%
EPS Next Y9.29%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.26%
Revenue growth 3Y4.45%
Revenue growth 5Y4.43%
Sales Q2Q%7.37%
Revenue Next Year8.05%
Revenue Next 2Y6.47%
Revenue Next 3Y4.19%
Revenue Next 5Y4.81%
EBIT growth 1Y-4.95%
EBIT growth 3Y17.73%
EBIT growth 5Y5.07%
EBIT Next Year266.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.55%
FCF growth 3Y6.09%
FCF growth 5Y12.79%
OCF growth 1Y9.81%
OCF growth 3Y7.35%
OCF growth 5Y12.04%
HEALTHSTREAM INC / HSTM FAQ
What is the fundamental rating for HSTM stock?
ChartMill assigns a fundamental rating of 5 / 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 7 / 10.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 30.69 and the Price/Book (PB) ratio is 1.78.
What is the earnings growth outlook for HEALTHSTREAM INC?
The Earnings per Share (EPS) of HEALTHSTREAM INC (HSTM) is expected to grow by 9.29% in the next year.