HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM • US42222N1037
21.7 USD
+0.33 (+1.54%)
At close: Mar 3, 2026
21.7 USD
0 (0%)
After Hours: 3/3/2026, 8:17:27 PM
Overall HSTM gets a fundamental rating of 5 out of 10. We evaluated HSTM against 35 industry peers in the Health Care Technology industry. HSTM scores excellent on profitability, but there are some minor concerns on its financial health. HSTM is not valued too expensively and it also shows a decent 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.
- Each year in the past 5 years HSTM has been profitable.
- In the past 5 years HSTM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HSTM (3.52%) is better than 94.29% of its industry peers.
- HSTM has a Return On Equity of 5.18%. This is amongst the best in the industry. HSTM outperforms 94.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.08%, HSTM is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HSTM is below the industry average of 7.01%.
- 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
- HSTM has a better Profit Margin (6.03%) than 91.43% of its industry peers.
- HSTM's Profit Margin has been stable in the last couple of years.
- The Operating Margin of HSTM (6.65%) is better than 77.14% 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 of 64.74%. This is comparable to the rest of the industry: HSTM outperforms 57.14% of its industry peers.
- 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. 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 less shares outstanding
- 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
- HSTM has an Altman-Z score of 3.30. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
- HSTM's Altman-Z score of 3.30 is fine compared to the rest of the industry. HSTM outperforms 77.14% 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 | 3.3 |
ROIC/WACC0.43
WACC9.53%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that HSTM may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.96, HSTM is doing worse than 80.00% of the companies in the same industry.
- HSTM has a Quick 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.
- Looking at the Quick ratio, with a value of 0.96, HSTM is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- HSTM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.06%.
- HSTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
- The Revenue has been growing slightly by 4.26% in the past year.
- 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.
- HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HSTM is valuated quite expensively with a Price/Earnings ratio of 31.00.
- Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 71.43% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.83, HSTM is valued at the same level.
- Based on the Price/Forward Earnings ratio of 28.37, the valuation of HSTM can be described as expensive.
- 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 (24.95), we can say HSTM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | 28.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- 71.43% of the companies in the same industry are more expensive than HSTM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.45 | ||
| EV/EBITDA | 8.63 |
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.
- HSTM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.34
PEG (5Y)1.91
EPS Next 2Y11.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- HSTM has a yearly dividend return of 0.60%, 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 91.43% of the companies in the same industry.
- With a Dividend Yield of 0.60, HSTM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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
21.7
+0.33 (+1.54%)
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 Owners73.96%
Inst Owner Change-1.97%
Ins Owners18.69%
Ins Owner Change-22.14%
Market Cap637.11M
Revenue(TTM)304.06M
Net Income(TTM)18.34M
Analysts78.18
Price Target33.15 (52.76%)
Short Float %5.45%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)0%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-2.76%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | 28.37 | ||
| P/S | 2.1 | ||
| P/FCF | 20.45 | ||
| P/OCF | 10.06 | ||
| P/B | 1.8 | ||
| P/tB | 24.51 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)0.7
EY3.23%
EPS(NY)0.77
Fwd EY3.53%
FCF(TTM)1.06
FCFY4.89%
OCF(TTM)2.16
OCFY9.94%
SpS10.36
BVpS12.06
TBVpS0.89
PEG (NY)3.34
PEG (5Y)1.91
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 | 3.3 |
F-Score6
WACC9.53%
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 Year264.71%
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 31 and the Price/Book (PB) ratio is 1.8.
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.