HEALTHSTREAM INC (HSTM) Fundamental Analysis & Valuation

NASDAQ:HSTM • US42222N1037

Current stock price

20.485 USD
-0.07 (-0.36%)
Last:

This HSTM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. HSTM Profitability Analysis

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.
  • 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 2025 20M 40M 60M

1.2 Ratios

  • The Return On Assets of HSTM (3.52%) is better than 82.86% of its industry peers.
  • HSTM has a better Return On Equity (5.18%) than 82.86% of its industry peers.
  • The Return On Invested Capital of HSTM (4.08%) 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 7.42%.
  • The 3 year average ROIC (3.91%) for HSTM is below the current ROIC(4.08%), indicating increased profibility in the last year.
Industry RankSector 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%
HSTM Yearly ROA, ROE, ROICHSTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • HSTM has a Profit Margin of 6.03%. This is amongst the best in the industry. HSTM outperforms 91.43% of its industry peers.
  • HSTM's Profit Margin has been stable in the last couple of years.
  • HSTM's Operating Margin of 6.65% is fine compared to the rest of the industry. HSTM outperforms 74.29% of its industry peers.
  • HSTM's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of HSTM (64.74%) 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 RankSector 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%
HSTM Yearly Profit, Operating, Gross MarginsHSTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. HSTM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSTM is destroying value.
  • HSTM has less 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 2025 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 2025 100M 200M 300M 400M 500M

2.2 Solvency

  • HSTM has an Altman-Z score of 3.21. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of HSTM (3.21) is better than 74.29% 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 3.21
ROIC/WACC0.43
WACC9.42%
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 2025 100M 200M 300M

2.3 Liquidity

  • HSTM has a Current Ratio of 0.96. This is a bad value and indicates that HSTM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • HSTM has a worse Current ratio (0.96) than 85.71% of its industry peers.
  • A Quick Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
  • HSTM's Quick ratio of 0.96 is on the low side compared to the rest of the industry. HSTM is outperformed by 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.96
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 2025 50M 100M 150M 200M

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4

3. HSTM Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.06% over the past year.
  • HSTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
  • HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
  • HSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
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.
  • The Revenue is expected to grow by 4.81% on average over the next years.
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.
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. HSTM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 29.26 indicates a quite expensive valuation of HSTM.
  • HSTM's Price/Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 71.43% of the companies in the same industry.
  • HSTM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.73, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 26.78, HSTM can be considered very expensive at the moment.
  • 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.
  • HSTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.72.
Industry RankSector Rank
PE 29.26
Fwd PE 26.78
HSTM Price Earnings VS Forward Price EarningsHSTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HSTM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
  • HSTM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 71.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.3
EV/EBITDA 8.25
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)3.15
PEG (5Y)1.8
EPS Next 2Y11.94%
EPS Next 3YN/A

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4

5. HSTM Dividend Analysis

5.1 Amount

  • HSTM has a yearly dividend return of 0.63%, which is pretty low.
  • 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.
  • Compared to an average S&P500 Dividend Yield of 1.91, HSTM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.63%

5.2 History

  • On average, the dividend of HSTM grows each year by 148.87%, which is quite nice.
  • HSTM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)148.87%
Div Incr Years1
Div Non Decr Years1
HSTM Yearly Dividends per shareHSTM Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2026 0.02 0.04 0.06 0.08 0.1

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 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 2025 10M 20M 30M
HSTM Dividend Payout.HSTM Dividend Payout, showing the Payout Ratio.HSTM Dividend Payout.PayoutRetained Earnings

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HSTM Fundamentals: All Metrics, Ratios and Statistics

HEALTHSTREAM INC

NASDAQ:HSTM (3/20/2026, 3:45:07 PM)

20.485

-0.07 (-0.36%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-23
Earnings (Next)05-04
Inst Owners73.32%
Inst Owner Change-1.94%
Ins Owners16.99%
Ins Owner Change-22.14%
Market Cap601.44M
Revenue(TTM)304.06M
Net Income(TTM)18.34M
Analysts78.18
Price Target33.15 (61.83%)
Short Float %5.17%
Short Ratio3.53
Dividend
Industry RankSector Rank
Dividend Yield 0.63%
Yearly Dividend0.12
Dividend Growth(5Y)148.87%
DP20.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-09
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)3.03%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)3.49%
Revenue NQ rev (3m)3.49%
Revenue NY rev (1m)3.01%
Revenue NY rev (3m)3.01%
Valuation
Industry RankSector Rank
PE 29.26
Fwd PE 26.78
P/S 1.98
P/FCF 19.3
P/OCF 9.5
P/B 1.7
P/tB 23.14
EV/EBITDA 8.25
EPS(TTM)0.7
EY3.42%
EPS(NY)0.77
Fwd EY3.73%
FCF(TTM)1.06
FCFY5.18%
OCF(TTM)2.16
OCFY10.53%
SpS10.36
BVpS12.06
TBVpS0.89
PEG (NY)3.15
PEG (5Y)1.8
Graham Number13.78
Profitability
Industry RankSector 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 RankSector 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 3.21
F-Score6
WACC9.42%
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 Fundamental Analysis 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 29.26 and the Price/Book (PB) ratio is 1.7.


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.