NasdaqGS:HSTM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has HealthStream's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

HSTM

1.4%

US Healthcare Services

1.8%

US Market


1 Year Return

-6.2%

HSTM

15.6%

US Healthcare Services

7.3%

US Market

Return vs Industry: HSTM underperformed the US Healthcare Services industry which returned 15.6% over the past year.

Return vs Market: HSTM underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

HSTMIndustryMarket
7 Day1.2%1.4%1.8%
30 Day-1.2%-0.9%-0.7%
90 Day-2.0%-5.3%0.06%
1 Year-6.2%-6.2%15.8%15.6%9.7%7.3%
3 Year0.4%-3.7%57.1%56.6%46.3%36.9%
5 Year-6.6%-10.4%49.8%48.7%64.5%46.5%

Price Volatility Vs. Market

How volatile is HealthStream's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

64.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HSTM ($26.16) is trading above our estimate of fair value ($20.3)

Significantly Undervalued: 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 (64.4x) compared to the Healthcare Services industry average (55x).

PE vs Market: HSTM is poor value based on its PE Ratio (64.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HSTM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HSTM is good value based on its PB Ratio (2.6x) compared to the US Healthcare Services industry average (3.7x).


Next Steps

Future Growth

How is HealthStream forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSTM's earnings are forecast to decline over the next 3 years (-17.4% per year).

Earnings vs Market: HSTM's earnings are forecast to decline over the next 3 years (-17.4% per year).

High Growth Earnings: HSTM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HSTM's revenue (4.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HSTM's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has HealthStream performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HSTM's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: HSTM's earnings growth over the past year (7.9%) is below its 5-year average (8.1% per year).

Earnings vs Industry: HSTM earnings growth over the past year (7.9%) exceeded the Healthcare Services industry 3.3%.


Return on Equity

High ROE: HSTM's Return on Equity (4%) is considered low.


Return on Assets

ROA vs Industry: HSTM's Return on Assets is below or equal to the Healthcare Services industry average last year.


Return on Capital Employed

ROCE Improving: HSTM has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is HealthStream's financial position?


Financial Position Analysis

Short Term Liabilities: HSTM's short term assets ($214.5M) exceeds its short term liabilities ($98.3M)

Long Term Liabilities: HSTM's short term assets (214.5M) exceeds its long term liabilities (48.5M)


Debt to Equity History and Analysis

Debt Level: HSTM is debt free.

Reducing Debt: HSTM had no debt 5 years ago.

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

Inventory Level: HSTM has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HSTM's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HSTM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Healthcare industry.

Management

What is the CEO of HealthStream's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Bobby Frist (52yo)

29.8yrs

Tenure

US$602,395

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Bobby's total compensation ($USD602.40K) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

2.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HSTM's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

17.8yrs

Average Tenure

63yo

Average Age

Experienced Board: HSTM's board of directors are seasoned and experienced ( 17.8 years average tenure).


Insider Trading

Insider Buying: HSTM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$142,90712 Aug 19
Jeffrey McLaren
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$28.58
SellUS$28,69916 May 19
C. Harris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,116
Max PriceUS$25.72

Ownership Breakdown


Management Team

  • Bobby Frist (52yo)

    Chairman & CEO

    • Tenure: 29.8yrs
    • Compensation: US$602.40k
  • J. Pearson (56yo)

    President & COO

    • Tenure: 1.4yrs
    • Compensation: US$695.81k
  • M. McQuigg (51yo)

    Senior Vice President of hStream Solutions

    • Tenure: 0.8yrs
  • Mollie Condra

    Vice President of Investor Relations & Communications

    • Tenure: 0yrs
  • Michael Sousa (50yo)

    Senior VP & President of Provider Solutions

    • Tenure: 5.3yrs
    • Compensation: US$728.82k
  • Jeff Cunningham (52yo)

    Senior VP & CTO

    • Tenure: 2.3yrs
    • Compensation: US$482.35k
  • Trisha Coady (43yo)

    Senior VP & GM of Clinical Solutions

    • Tenure: 0.9yrs
  • Michael Collier (43yo)

    Senior VP of Business Development

    • Tenure: 8.2yrs
  • Scott Fenstermacher

    Head of Sales & VP

    • Tenure: 2.3yrs
  • Scott Roberts (42yo)

    CFO and Senior VP of Accounting & Finance

    • Tenure: 0.7yrs

Board Members

  • Tom Dent (69yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$97.61k
  • Bobby Frist (52yo)

    Chairman & CEO

    • Tenure: 29.8yrs
    • Compensation: US$602.40k
  • Jeff McLaren (52yo)

    Independent Director

    • Tenure: 29.8yrs
    • Compensation: US$90.11k
  • C. Harris (63yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$90.11k
  • William Stead (70yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$90.11k
  • Michael Shmerling (64yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$90.11k
  • Linda Rebrovick (63yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$90.11k
  • Frank Gordon (56yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$92.11k
  • Deborah Tate (62yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$90.11k

Company Information

HealthStream, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HealthStream, Inc.
  • Ticker: HSTM
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$846.891m
  • Shares outstanding: 32.37m
  • Website: https://www.healthstream.com

Number of Employees


Location

  • HealthStream, Inc.
  • 500 11th Avenue North
  • Suite 1000
  • Nashville
  • Tennessee
  • 37203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSTMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2000
HL5DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2000

Biography

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 off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.