HEALTHSTREAM INC (HSTM) Stock Fundamental Analysis
NASDAQ:HSTM - Nasdaq - US42222N1037 - Common Stock - Currency: USD
HSTM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 37 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HSTM was profitable.
HSTM had a positive operating cash flow in the past year.
In the past 5 years HSTM has always been profitable.
Each year in the past 5 years HSTM had a positive operating cash flow.
1.2 Ratios
HSTM has a Return On Assets of 3.92%. This is amongst the best in the industry. HSTM outperforms 91.89% of its industry peers.
HSTM has a Return On Equity of 5.57%. This is amongst the best in the industry. HSTM outperforms 91.89% of its industry peers.
HSTM has a better Return On Invested Capital (4.39%) than 86.49% 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 6.39%.
The 3 year average ROIC (3.49%) for HSTM is below the current ROIC(4.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.57% | ||
| ROIC | 4.39% |
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
Looking at the Profit Margin, with a value of 6.86%, HSTM belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
In the last couple of years the Profit Margin of HSTM has grown nicely.
HSTM's Operating Margin of 7.30% is amongst the best of the industry. HSTM outperforms 81.08% of its industry peers.
In the last couple of years the Operating Margin of HSTM has grown nicely.
HSTM's Gross Margin of 66.42% is fine compared to the rest of the industry. HSTM outperforms 64.86% of its industry peers.
HSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.3% | ||
| PM (TTM) | 6.86% | ||
| GM | 66.42% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSTM is destroying value.
Compared to 1 year ago, HSTM has more shares outstanding
HSTM has less shares outstanding than it did 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 4.51 indicates that HSTM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.51, HSTM is in the better half of the industry, outperforming 78.38% 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 | 4.51 |
ROIC/WACC0.41
WACC10.66%
2.3 Liquidity
A Current Ratio of 1.32 indicates that HSTM should not have too much problems paying its short term obligations.
HSTM has a Current ratio (1.32) which is comparable to the rest of the industry.
HSTM has a Quick Ratio of 1.32. This is a normal value and indicates that HSTM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HSTM (1.32) is comparable to the rest of the industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.62% over the past year.
The Earnings Per Share has been growing slightly by 7.96% on average over the past years.
HSTM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.51%.
The Revenue has been growing slightly by 2.79% on average over the past years.
EPS 1Y (TTM)8.62%
EPS 3Y42.1%
EPS 5Y7.96%
EPS Q2Q%-17.65%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%1%
3.2 Future
Based on estimates for the next years, HSTM will show a small growth in Earnings Per Share. The EPS will grow by 3.26% on average per year.
HSTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.88% yearly.
EPS Next Y-0.06%
EPS Next 2Y3.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.17%
Revenue Next 2Y4.14%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 44.83 indicates a quite expensive valuation of HSTM.
Compared to the rest of the industry, the Price/Earnings ratio of HSTM indicates a somewhat cheap valuation: HSTM is cheaper than 75.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HSTM to the average of the S&P500 Index (26.03), we can say HSTM is valued expensively.
With a Price/Forward Earnings ratio of 40.13, HSTM can be considered very expensive at the moment.
HSTM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSTM is cheaper than 67.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HSTM to the average of the S&P500 Index (21.94), we can say HSTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.83 | ||
| Fwd PE | 40.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSTM indicates a rather cheap valuation: HSTM is cheaper than 83.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HSTM is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.21 | ||
| EV/EBITDA | 11.63 |
4.3 Compensation for Growth
HSTM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.63
EPS Next 2Y3.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, HSTM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 36.74, HSTM pays a better dividend. On top of this HSTM pays more dividend than 91.89% of the companies listed in the same industry.
With a Dividend Yield of 0.43, HSTM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of HSTM is nicely growing with an annual growth rate of 126.03%!
HSTM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)126.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
17.01% 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.
DP17.01%
EPS Next 2Y3.26%
EPS Next 3YN/A
28.24
-0.41 (-1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners78.63%
Inst Owner Change0.79%
Ins Owners20.59%
Ins Owner Change1.03%
Market Cap862.17M
Analysts76.67
Price Target35.7 (26.42%)
Short Float %2.43%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.11
Dividend Growth(5Y)126.03%
DP17.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.43%
Min EPS beat(2)12.04%
Max EPS beat(2)48.82%
EPS beat(4)4
Avg EPS beat(4)32.36%
Min EPS beat(4)12.04%
Max EPS beat(4)52.91%
EPS beat(8)8
Avg EPS beat(8)35.45%
EPS beat(12)12
Avg EPS beat(12)65.28%
EPS beat(16)16
Avg EPS beat(16)136.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-0.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.07%
Revenue beat(12)0
Avg Revenue beat(12)-2.23%
Revenue beat(16)2
Avg Revenue beat(16)-1.07%
PT rev (1m)0%
PT rev (3m)7.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.5%
EPS NY rev (1m)-2.02%
EPS NY rev (3m)-3.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.83 | ||
| Fwd PE | 40.13 | ||
| P/S | 2.96 | ||
| P/FCF | 29.21 | ||
| P/OCF | 14.95 | ||
| P/B | 2.4 | ||
| P/tB | 12.46 | ||
| EV/EBITDA | 11.63 |
EPS(TTM)0.63
EY2.23%
EPS(NY)0.7
Fwd EY2.49%
FCF(TTM)0.97
FCFY3.42%
OCF(TTM)1.89
OCFY6.69%
SpS9.55
BVpS11.77
TBVpS2.27
PEG (NY)N/A
PEG (5Y)5.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 5.57% | ||
| ROCE | 5.39% | ||
| ROIC | 4.39% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 224.59% | ||
| OM | 7.3% | ||
| PM (TTM) | 6.86% | ||
| GM | 66.42% | ||
| FCFM | 10.12% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 68.23% | ||
| Cap/Sales | 9.65% | ||
| Interest Coverage | 210.77 | ||
| Cash Conversion | 92.21% | ||
| Profit Quality | 147.52% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 4.51 |
F-Score8
WACC10.66%
ROIC/WACC0.41
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-0.06%
EPS Next 2Y3.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.51%
Revenue growth 3Y4.35%
Revenue growth 5Y2.79%
Sales Q2Q%1%
Revenue Next Year3.17%
Revenue Next 2Y4.14%
Revenue Next 3Y6.31%
Revenue Next 5Y6.88%
EBIT growth 1Y32.93%
EBIT growth 3Y38%
EBIT growth 5Y7.69%
EBIT Next Year237.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.92%
FCF growth 3Y20.1%
FCF growth 5Y0.25%
OCF growth 1Y-9.86%
OCF growth 3Y10.8%
OCF growth 5Y-2.57%