HEALTHSTREAM INC (HSTM)
US42222N1037 - Common Stock
HSTM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 40 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. This makes HSTM very considerable 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.
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
HSTM has a better Return On Assets (3.04%) than 87.18% of its industry peers.
HSTM has a better Return On Equity (4.46%) than 87.18% of its industry peers.
With an excellent Return On Invested Capital value of 3.35%, HSTM belongs to the best of the industry, outperforming 92.31% 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 4.85%.
The 3 year average ROIC (2.54%) for HSTM is below the current ROIC(3.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.04% | ||
| ROE | 4.46% | ||
| ROIC | 3.35% |
ROA(3y)2.22%
ROA(5y)2.54%
ROE(3y)3.27%
ROE(5y)3.74%
ROIC(3y)2.54%
ROIC(5y)2.8%
1.3 Margins
HSTM has a Profit Margin of 5.45%. This is amongst the best in the industry. HSTM outperforms 87.18% of its industry peers.
HSTM's Profit Margin has declined in the last couple of years.
HSTM has a better Operating Margin (5.74%) than 89.74% of its industry peers.
HSTM's Operating Margin has declined in the last couple of years.
The Gross Margin of HSTM (65.95%) is better than 61.54% of its industry peers.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.74% | ||
| PM (TTM) | 5.45% | ||
| GM | 65.95% |
OM growth 3Y-3.83%
OM growth 5Y-3.02%
PM growth 3Y-1.82%
PM growth 5Y-17.08%
GM growth 3Y1.26%
GM growth 5Y2.41%
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.
HSTM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HSTM has been reduced compared to 5 years ago.
HSTM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.77 indicates that HSTM is not in any danger for bankruptcy at the moment.
The Altman-Z score of HSTM (3.77) is better than 82.05% of its industry peers.
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 | 3.77 |
ROIC/WACC0.32
WACC10.38%
2.3 Liquidity
A Current Ratio of 1.10 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM has a Current ratio of 1.10. This is in the lower half of the industry: HSTM underperforms 66.67% of its industry peers.
HSTM has a Quick Ratio of 1.10. This is a normal value and indicates that HSTM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, HSTM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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 | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
HSTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.21%, which is quite impressive.
Measured over the past 5 years, HSTM shows a small growth in Earnings Per Share. The EPS has been growing by 3.55% on average per year.
Looking at the last year, HSTM shows a small growth in Revenue. The Revenue has grown by 4.58% in the last year.
Measured over the past years, HSTM shows a small growth in Revenue. The Revenue has been growing by 3.80% on average per year.
EPS 1Y (TTM)28.21%
EPS 3Y14.86%
EPS 5Y3.55%
EPS growth Q2Q87.5%
Revenue 1Y (TTM)4.58%
Revenue growth 3Y4.46%
Revenue growth 5Y3.8%
Revenue growth Q2Q2.98%
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 16.75% yearly.
The Revenue is expected to grow by 6.60% on average over the next years.
EPS Next Y3.02%
EPS Next 2Y8.46%
EPS Next 3Y16.75%
EPS Next 5YN/A
Revenue Next Year4.73%
Revenue Next 2Y5.1%
Revenue Next 3Y5.56%
Revenue Next 5Y6.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 48.94, the valuation of HSTM can be described as expensive.
Based on the Price/Earnings ratio, HSTM is valued a bit cheaper than 71.79% of the companies in the same industry.
HSTM is valuated expensively when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 47.51, HSTM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, HSTM is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
HSTM is valuated expensively when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.94 | ||
| Fwd PE | 47.51 |
4.2 Price Multiples
89.74% of the companies in the same industry are more expensive than HSTM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HSTM is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.62 | ||
| EV/EBITDA | 11.31 |
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.
HSTM's earnings are expected to grow with 16.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.21
PEG (5Y)13.79
EPS Next 2Y8.46%
EPS Next 3Y16.75%
5. Dividend
5.1 Amount
HSTM has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 32.43, HSTM pays a better dividend. On top of this HSTM pays more dividend than 89.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HSTM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of HSTM decreases each year by -36.96%.
HSTM does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-36.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HSTM pays out 20.11% of its income as dividend. This is a sustainable payout ratio.
DP20.11%
EPS Next 2Y8.46%
EPS Next 3Y16.75%
HEALTHSTREAM INC
NASDAQ:HSTM (4/17/2024, 7:04:33 PM)
After market: 24.47 0 (0%)24.47
-0.2 (-0.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap741.44M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.94 | ||
| Fwd PE | 47.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.21
PEG (5Y)13.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.04% | ||
| ROE | 4.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.74% | ||
| PM (TTM) | 5.45% | ||
| GM | 65.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)28.21%
EPS 3Y14.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.58%
Revenue growth 3Y4.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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