HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM - Nasdaq - US42222N1037 - Common Stock - Currency: USD
Overall HSTM gets a fundamental rating of 7 out of 10. We evaluated HSTM against 36 industry peers in the Health Care Technology industry. HSTM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HSTM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HSTM was profitable.
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.
1.2 Ratios
The Return On Assets of HSTM (3.65%) is better than 94.44% of its industry peers.
With an excellent Return On Equity value of 5.27%, HSTM belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
HSTM has a better Return On Invested Capital (4.08%) than 86.11% of its industry peers.
HSTM had an Average Return On Invested Capital over the past 3 years of 3.49%. This is below the industry average of 6.38%.
The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 5.27% | ||
| ROIC | 4.08% |
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 (6.54%) than 91.67% of its industry peers.
HSTM's Profit Margin has improved in the last couple of years.
HSTM has a Operating Margin of 6.83%. This is amongst the best in the industry. HSTM outperforms 80.56% of its industry peers.
HSTM's Operating Margin has improved in the last couple of years.
HSTM has a better Gross Margin (66.21%) than 63.89% of its industry peers.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 6.54% | ||
| GM | 66.21% |
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.
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.
2.2 Solvency
HSTM has an Altman-Z score of 4.24. This indicates that HSTM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.24, HSTM belongs to the best of the industry, outperforming 80.56% 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 | 4.24 |
ROIC/WACC0.4
WACC10.11%
2.3 Liquidity
HSTM has a Current Ratio of 1.35. This is a normal value and indicates that HSTM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HSTM (1.35) is worse than 63.89% of its industry peers.
A Quick Ratio of 1.35 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM's Quick ratio of 1.35 is on the low side compared to the rest of the industry. HSTM is outperformed by 63.89% 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 | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.62% over the past year.
HSTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.96% yearly.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 3.35% in the last year.
Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 2.79% on average per year.
EPS 1Y (TTM)8.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%-17.65%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%1%
3.2 Future
HSTM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.64% yearly.
Based on estimates for the next years, HSTM will show a small growth in Revenue. The Revenue will grow by 6.88% on average per year.
EPS Next Y-0.7%
EPS Next 2Y3.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.19%
Revenue Next 2Y4.19%
Revenue Next 3Y6.31%
Revenue Next 5Y6.88%
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 decreasing.
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
The Price/Earnings ratio is 44.13, which means the current valuation is very expensive for HSTM.
77.78% of the companies in the same industry are more expensive than HSTM, based on the Price/Earnings ratio.
HSTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
HSTM is valuated quite expensively with a Price/Forward Earnings ratio of 39.22.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, HSTM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 39.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSTM is valued cheaper than 88.89% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSTM indicates a rather cheap valuation: HSTM is cheaper than 86.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.55 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
The excellent profitability rating of HSTM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.54
EPS Next 2Y3.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 23.64, HSTM pays a better dividend. On top of this HSTM pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
5.3 Sustainability
HSTM pays out 18.30% 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.
DP18.3%
EPS Next 2Y3.64%
EPS Next 3YN/A
27.8
+0.05 (+0.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners76.2%
Inst Owner Change0.64%
Ins Owners20.38%
Ins Owner Change1.51%
Market Cap848.73M
Analysts78.18
Price Target35.19 (26.58%)
Short Float %2.37%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP18.3%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.01%
Min EPS beat(2)-12.02%
Max EPS beat(2)12.04%
EPS beat(4)3
Avg EPS beat(4)16.13%
Min EPS beat(4)-12.02%
Max EPS beat(4)48.82%
EPS beat(8)7
Avg EPS beat(8)32.31%
EPS beat(12)11
Avg EPS beat(12)46.35%
EPS beat(16)15
Avg EPS beat(16)124.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-1.03%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.34%
Revenue beat(16)1
Avg Revenue beat(16)-1.73%
PT rev (1m)-1.43%
PT rev (3m)-1.43%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-6.2%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 39.22 | ||
| P/S | 2.9 | ||
| P/FCF | 24.55 | ||
| P/OCF | 13.3 | ||
| P/B | 2.34 | ||
| P/tB | 11.26 | ||
| EV/EBITDA | 11.32 |
EPS(TTM)0.63
EY2.27%
EPS(NY)0.71
Fwd EY2.55%
FCF(TTM)1.13
FCFY4.07%
OCF(TTM)2.09
OCFY7.52%
SpS9.58
BVpS11.88
TBVpS2.47
PEG (NY)N/A
PEG (5Y)5.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 5.27% | ||
| ROCE | 5.02% | ||
| ROIC | 4.08% | ||
| ROICexc | 5.71% | ||
| ROICexgc | N/A | ||
| OM | 6.83% | ||
| PM (TTM) | 6.54% | ||
| GM | 66.21% | ||
| FCFM | 11.82% |
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-Score8
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 70.15% | ||
| Cap/Sales | 10% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.5% | ||
| Profit Quality | 180.86% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 4.24 |
F-Score8
WACC10.11%
ROIC/WACC0.4
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)8.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%-17.65%
EPS Next Y-0.7%
EPS Next 2Y3.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%1%
Revenue Next Year3.19%
Revenue Next 2Y4.19%
Revenue Next 3Y6.31%
Revenue Next 5Y6.88%
EBIT growth 1Y6.18%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year230.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.33%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y24.92%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%