HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
USA - NASDAQ:HSTM - US42222N1037 - Common Stock
28.86 USD
-0.36 (-1.23%)
28.86 USD
0 (0%)
Overall HSTM gets a fundamental rating of 6 out of 10. We evaluated HSTM against 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 has a decent growth rate and is not valued too expensively.
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.
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
Looking at the Return On Assets, with a value of 4.07%, HSTM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
HSTM has a Return On Equity of 5.80%. 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 4.54%, HSTM belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HSTM is below the industry average of 6.80%.
The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 5.8% | ||
| ROIC | 4.54% |
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
HSTM has a better Profit Margin (6.89%) than 91.43% of its industry peers.
HSTM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.27%, HSTM belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
In the last couple of years the Operating Margin of HSTM has grown nicely.
HSTM has a better Gross Margin (65.64%) than 65.71% of its industry peers.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 6.89% | ||
| GM | 65.64% |
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
HSTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
HSTM has an Altman-Z score of 4.56. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.56, HSTM is doing good in 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.48
WACC9.47%
2.3 Liquidity
HSTM has a Current Ratio of 1.25. 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 worse Current ratio (1.25) than 68.57% of its industry peers.
HSTM has a Quick Ratio of 1.25. 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 Quick ratio of 1.25. This is in the lower half of the industry: HSTM underperforms 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 | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.56% 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 3.50% 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)13.56%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%28.57%
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%3.97%
3.2 Future
HSTM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.80% yearly.
HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.07 indicates a quite expensive valuation of HSTM.
Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 74.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HSTM is valued quite expensively.
With a Price/Forward Earnings ratio of 37.63, HSTM can be considered very expensive at the moment.
62.86% of the companies in the same industry are more expensive than HSTM, based on the Price/Forward Earnings ratio.
HSTM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.07 | ||
| Fwd PE | 37.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HSTM is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.76 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HSTM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)15.54
PEG (5Y)5.41
EPS Next 2Y7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, HSTM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.73, HSTM pays a better dividend. On top of this HSTM pays more dividend than 94.29% of the companies listed in the same industry.
With a Dividend Yield of 0.41, HSTM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of HSTM is nicely growing with an annual growth rate of 126.03%!
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
5.3 Sustainability
17.67% 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.
DP17.67%
EPS Next 2Y7.8%
EPS Next 3YN/A
28.86
-0.36 (-1.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners76.09%
Inst Owner Change-3.14%
Ins Owners20.43%
Ins Owner Change1.14%
Market Cap855.41M
Analysts78.18
Price Target34.68 (20.17%)
Short Float %3.54%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.55%
Min EPS beat(2)-12.02%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)15.49%
Min EPS beat(4)-12.02%
Max EPS beat(4)48.82%
EPS beat(8)7
Avg EPS beat(8)27.92%
EPS beat(12)11
Avg EPS beat(12)38.02%
EPS beat(16)15
Avg EPS beat(16)105.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.91%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-1.96%
Revenue beat(4)0
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-1.03%
Revenue beat(8)0
Avg Revenue beat(8)-2.49%
Revenue beat(12)0
Avg Revenue beat(12)-2.26%
Revenue beat(16)0
Avg Revenue beat(16)-2.16%
PT rev (1m)-1.45%
PT rev (3m)-1.45%
EPS NQ rev (1m)5.6%
EPS NQ rev (3m)5.07%
EPS NY rev (1m)3.5%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.07 | ||
| Fwd PE | 37.63 | ||
| P/S | 2.9 | ||
| P/FCF | 27.76 | ||
| P/OCF | 13.72 | ||
| P/B | 2.44 | ||
| P/tB | 13.1 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)0.67
EY2.32%
EPS(NY)0.77
Fwd EY2.66%
FCF(TTM)1.04
FCFY3.6%
OCF(TTM)2.1
OCFY7.29%
SpS9.96
BVpS11.83
TBVpS2.2
PEG (NY)15.54
PEG (5Y)5.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 5.8% | ||
| ROCE | 5.58% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 197.11% | ||
| OM | 7.27% | ||
| PM (TTM) | 6.89% | ||
| GM | 65.64% | ||
| FCFM | 10.44% |
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%
ROICexcg growth 3Y117.94%
ROICexcg 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.83% | ||
| Cap/Sales | 10.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.05% | ||
| Profit Quality | 151.56% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 4.56 |
F-Score7
WACC9.47%
ROIC/WACC0.48
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)13.56%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%28.57%
EPS Next Y2.77%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%3.97%
Revenue Next Year3.09%
Revenue Next 2Y4.1%
Revenue Next 3Y6.31%
Revenue Next 5Y4.27%
EBIT growth 1Y11.64%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year230.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y40.67%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y28.07%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%