HealthStream (NasdaqGS:HSTM) - Share price, News & Analysis

HSTM fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

HSTM Stock Overview

HealthStream, Inc. provides workforce and provider solutions for healthcare organizations in the United States.

Rewards

Earnings are forecast to grow 24.14% per year

Risk Analysis

Profit margins (2.5%) are lower than last year (3.8%)

HealthStream Competitors

Evolent Health

NYSE:EVH

US$2.6b

NextGen Healthcare

NasdaqGS:NXGN

US$1.3b

Health Catalyst

NasdaqGS:HCAT

US$793.3m

Computer Programs and Systems

NasdaqGS:CPSI

US$467.4m

Price History & Performance

Summary of all time highs, changes and price drops for HealthStream
Historical stock prices
Current Share Price	US$19.33
52 Week High	US$31.11
52 Week Low	US$18.51
Beta	0.48
1 Month Change	-2.86%
3 Month Change	-19.59%
1 Year Change	-26.28%
3 Year Change	-25.57%
5 Year Change	-31.19%
Change since IPO	127.41%

Shareholder Returns

	HSTM	US Healthcare Services	US Market
7D	-0.2%	0.8%	0.7%
1Y	-26.3%	-36.4%	-10.8%

Return vs Industry: HSTM exceeded the US Healthcare Services industry which returned -35.3% over the past year.

Return vs Market: HSTM underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is HSTM's price volatile compared to industry and market?
HSTM volatility
HSTM Average Weekly Movement	6.5%
Healthcare Services Industry Average Movement	12.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: HSTM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HSTM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	1,088	Bobby Frist	https://www.healthstream.com

HealthStream, Inc. provides workforce and provider solutions for healthcare organizations in the United States. It operates through two segments, Workforce Solutions and Provider Solutions. The company offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the range of its clinical development, talent management, training, education, certification, scheduling, competency assessment, performance appraisal, and other needs, as well as implementation and account management services.

HealthStream Fundamentals Summary

How do HealthStream's earnings and revenue compare to its market cap?
HSTM fundamental statistics
Market Cap	US$584.73m
Earnings (TTM)	US$6.45m
Revenue (TTM)	US$258.61m

91.1x

P/E Ratio

2.3x

P/S Ratio

Is HSTM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSTM income statement (TTM)
Revenue	US$258.61m
Cost of Revenue	US$90.28m
Gross Profit	US$168.33m
Other Expenses	US$161.88m
Earnings	US$6.45m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.21
Gross Margin	65.09%
Net Profit Margin	2.49%
Debt/Equity Ratio	0%

How did HSTM perform over the long term?

See historical performance and comparison

Valuation

Is HealthStream undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

91.12x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: HSTM ($19.24) is trading above our estimate of fair value ($9.46)

Significantly Below Fair Value: HSTM is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: HSTM is poor value based on its PE Ratio (90.7x) compared to the US Healthcare Services industry average (52x).

PE vs Market: HSTM is poor value based on its PE Ratio (90.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: HSTM is poor value based on its PEG Ratio (3.8x)

Price to Book Ratio

PB vs Industry: HSTM is good value based on its PB Ratio (1.8x) compared to the US Healthcare Services industry average (2.1x).

Future Growth

How is HealthStream forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSTM's forecast earnings growth (24.1% per year) is above the savings rate (1.9%).

Earnings vs Market: HSTM's earnings (24.1% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HSTM's revenue (8.5% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: HSTM's revenue (8.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if HSTM's Return on Equity is forecast to be high in 3 years time

Past Performance

How has HealthStream performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HSTM has high quality earnings.

Growing Profit Margin: HSTM's current net profit margins (2.5%) are lower than last year (3.8%).

Past Earnings Growth Analysis

Earnings Trend: HSTM's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: HSTM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HSTM had negative earnings growth (-30.6%) over the past year, making it difficult to compare to the Healthcare Services industry average (6.6%).

Return on Equity

High ROE: HSTM's Return on Equity (2%) is considered low.

Financial Health

How is HealthStream's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HSTM's short term assets ($107.2M) do not cover its short term liabilities ($114.6M).

Long Term Liabilities: HSTM's short term assets ($107.2M) exceed its long term liabilities ($46.8M).

Debt to Equity History and Analysis

Debt Level: HSTM is debt free.

Reducing Debt: HSTM has not had any debt for past 5 years.

Debt Coverage: HSTM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HSTM has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is HealthStream current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate HSTM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HSTM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HSTM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HSTM's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HSTM has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Healthcare industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure

CEO

Bobby Frist (54 yo)

32.33yrs

Tenure

US$644,550

Compensation

Mr. Robert A. Frist, Jr., also known as Bobby, is a Co-founder of Healthstream, Inc. and has been its Chief Executive Officer and Director since 1990. Mr. Frist has been the Chairman at Healthstream, Inc....

CEO Compensation Analysis

Compensation vs Market: Bobby's total compensation ($USD644.55K) is below average for companies of similar size in the US market ($USD2.65M).

Compensation vs Earnings: Bobby's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: HSTM's management team is seasoned and experienced (5.6 years average tenure).

Board Members

Experienced Board: HSTM's board of directors are seasoned and experienced ( 21.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: HSTM insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31