20.09 USD
-0.21 (-1.03%)
At close: Feb 6, 2026
20.09 USD
0 (0%)
After Hours: 2/6/2026, 8:00:01 PM
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. Both the health and profitability get an excellent rating, making HSTM a very profitable company, without any liquidiy or solvency issues. HSTM is not valued too expensively and it also shows a decent growth rate. These ratings could make HSTM a good candidate for quality investing.
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.
- In the past 5 years HSTM has always been profitable.
- HSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HSTM (4.14%) is better than 94.29% of its industry peers.
- With an excellent Return On Equity value of 5.93%, HSTM belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
- 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 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 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
- The Profit Margin of HSTM (6.93%) is better than 91.43% of its industry peers.
- In the last couple of years the Profit Margin of HSTM has grown nicely.
- The Operating Margin of HSTM (7.54%) is better than 80.00% of its industry peers.
- HSTM's Operating Margin has improved in the last couple of years.
- HSTM has a Gross Margin (65.35%) which is in line with its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSTM is destroying value.
- The number of shares outstanding for HSTM has been increased compared to 1 year ago.
- HSTM has less shares outstanding than it did 5 years ago.
- 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
- An Altman-Z score of 3.54 indicates that HSTM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HSTM (3.54) is better than 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.5
WACC9.52%
2.3 Liquidity
- A Current Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
- HSTM's Current ratio of 1.31 is on the low side compared to the rest of the industry. HSTM is outperformed by 68.57% of its industry peers.
- A Quick Ratio of 1.31 indicates that HSTM should not have too much problems paying its short term obligations.
- HSTM's Quick ratio of 1.31 is on the low side compared to the rest of the industry. HSTM is outperformed by 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%.
- 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%.
- 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
- HSTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.85% yearly.
- 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 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.
- 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 29.54 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.
- The average S&P500 Price/Earnings ratio is at 27.93. HSTM is around the same levels.
- Based on the Price/Forward Earnings ratio of 25.85, the valuation of HSTM can be described as expensive.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 27.77. HSTM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 25.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaper than 88.57% of the companies in the same industry.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.51 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
- The excellent profitability rating of HSTM may justify a higher PE ratio.
- HSTM's earnings are expected to grow with 12.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.71
EPS Next 2Y8.52%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
- HSTM has a yearly dividend return of 0.61%, which is pretty low.
- HSTM's Dividend Yield is rather good when compared to the industry average which is at 0.60. 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 1.81.
| Industry Rank | Sector 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 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
- 17.69% of the earnings are spent on dividend by HSTM. This is a low number and 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%
20.09
-0.21 (-1.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners73.96%
Inst Owner Change-3.82%
Ins Owners18.69%
Ins Owner Change-22.51%
Market Cap596.07M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target33.15 (65.01%)
Short Float %3.27%
Short Ratio3.1
Dividend
| Industry Rank | Sector 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)-4.41%
PT rev (3m)-4.41%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)-40.22%
EPS NY rev (1m)-5.02%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 25.85 | ||
| P/S | 2 | ||
| P/FCF | 20.51 | ||
| P/OCF | 9.73 | ||
| P/B | 1.71 | ||
| P/tB | 8.96 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)0.68
EY3.38%
EPS(NY)0.78
Fwd EY3.87%
FCF(TTM)0.98
FCFY4.88%
OCF(TTM)2.07
OCFY10.28%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)N/A
PEG (5Y)3.71
Graham Number13.42
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.54 |
F-Score7
WACC9.52%
ROIC/WACC0.5
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 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.
Can you provide the PE and PB ratios for HSTM stock?
The Price/Earnings (PE) ratio for HEALTHSTREAM INC (HSTM) is 29.54 and the Price/Book (PB) ratio is 1.71.
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.