HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis

NASDAQ:HSTM • US42222N1037

20.35 USD
+0.15 (+0.74%)
At close: Feb 20, 2026
20.35 USD
0 (0%)
After Hours: 2/20/2026, 4:30:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

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 decent growth rate and is not valued too expensively. With these ratings, HSTM could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year HSTM was profitable.
  • HSTM had a positive operating cash flow in the past year.
  • Each year in the past 5 years HSTM has been profitable.
  • HSTM had a positive operating cash flow in each of the past 5 years.
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.
  • HSTM's Return On Invested Capital of 4.73% is fine compared to the rest of the industry. HSTM outperforms 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 6.72%.
  • 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

  • With an excellent Profit Margin value of 6.93%, HSTM belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
  • HSTM's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 7.54%, HSTM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • HSTM's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 65.35%, HSTM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of HSTM has grown nicely.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSTM is destroying value.
  • Compared to 1 year ago, HSTM has more 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.
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

  • HSTM has an Altman-Z score of 3.56. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.56, HSTM is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.56
ROIC/WACC0.5
WACC9.48%
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.
  • HSTM has a Current ratio of 1.31. This is in the lower half of the industry: HSTM underperforms 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.
  • The Quick ratio of HSTM (1.31) is worse than 68.57% of its industry peers.
  • HSTM does not score too well on the current and quick ratio evaluation. However, as it has 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

  • The Earnings Per Share has been growing slightly by 4.62% over the past year.
  • The Earnings Per Share has been growing slightly by 7.96% on average over the past years.
  • The Revenue has been growing slightly by 3.68% in the past 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)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.
  • 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

  • With a Price/Earnings ratio of 29.93, HSTM can be considered very expensive at the moment.
  • 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.
  • When comparing the Price/Earnings ratio of HSTM to the average of the S&P500 Index (27.09), we can say HSTM is valued inline with the index average.
  • The Price/Forward Earnings ratio is 26.18, which means the current valuation is very expensive for HSTM.
  • The rest of the industry has a similar Price/Forward Earnings ratio as HSTM.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.98, HSTM is valued at the same level.
Industry RankSector Rank
PE 29.93
Fwd PE 26.18
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

  • Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaper than 88.57% of the companies 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 20.78
EV/EBITDA 7.15
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

  • HSTM has an outstanding profitability rating, which 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)3.76
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 0.62%, HSTM is not a good candidate for dividend investing.
  • In the last 3 months the price of HSTM has falen by -20.04%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.60, HSTM pays a better dividend. On top of this HSTM pays more dividend than 94.29% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.85, HSTM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.62%

5.2 History

  • On average, the dividend of HSTM grows each year by 126.03%, 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)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

  • 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%
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 (2/20/2026, 4:30:02 PM)

After market: 20.35 0 (0%)

20.35

+0.15 (+0.74%)

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-2.8%
Ins Owners18.69%
Ins Owner Change-22.51%
Market Cap603.78M
Revenue(TTM)298.59M
Net Income(TTM)20.70M
Analysts78.18
Price Target33.15 (62.9%)
Short Float %3.98%
Short Ratio3.31
Dividend
Industry RankSector Rank
Dividend Yield 0.62%
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)-21.43%
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 RankSector Rank
PE 29.93
Fwd PE 26.18
P/S 2.02
P/FCF 20.78
P/OCF 9.85
P/B 1.73
P/tB 9.08
EV/EBITDA 7.15
EPS(TTM)0.68
EY3.34%
EPS(NY)0.78
Fwd EY3.82%
FCF(TTM)0.98
FCFY4.81%
OCF(TTM)2.07
OCFY10.15%
SpS10.06
BVpS11.77
TBVpS2.24
PEG (NY)N/A
PEG (5Y)3.76
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 3.56
F-Score7
WACC9.48%
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 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 29.93 and the Price/Book (PB) ratio is 1.73.


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.