NasdaqGS:HSTM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with questionable 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

Stable Share Price: HSTM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

HSTM

1.6%

US Healthcare Services

1.8%

US Market


1 Year Return

-3.8%

HSTM

24.2%

US Healthcare Services

20.1%

US Market

Return vs Industry: HSTM underperformed the US Healthcare Services industry which returned 24.2% over the past year.

Return vs Market: HSTM underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

HSTMIndustryMarket
7 Day-2.4%1.6%1.8%
30 Day-6.4%3.6%1.4%
90 Day-3.9%12.1%8.8%
1 Year-3.8%-3.8%24.4%24.2%22.7%20.1%
3 Year16.3%11.5%91.2%90.3%50.1%40.4%
5 Year1.9%-2.3%55.9%54.6%72.9%53.9%

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?

61.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HSTM ($25.85) is trading above our estimate of fair value ($18.27)

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 (61.6x) compared to the Healthcare Services industry average (59.3x).

PE vs Market: HSTM is poor value based on its PE Ratio (61.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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 (2.5x) 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 7 analysts?

-39.0%

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 (-39% per year).

Earnings vs Market: HSTM's earnings are forecast to decline over the next 3 years (-39% per year).

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

Revenue vs Market: HSTM's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HSTM's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSTM's Return on Equity is forecast to be low in 3 years time (1.5%).


Next Steps

Past Performance

How has HealthStream performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSTM has high quality earnings.

Growing Profit Margin: HSTM's current net profit margins (5.4%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: HSTM's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: HSTM's earnings growth over the past year (0.6%) is below its 5-year average (9.4% per year).

Earnings vs Industry: HSTM earnings growth over the past year (0.6%) underperformed the Healthcare Services industry 12.1%.


Return on Equity

High ROE: HSTM's Return on Equity (4.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HealthStream's financial position?


Financial Position Analysis

Short Term Liabilities: HSTM's short term assets ($223.0M) exceed its short term liabilities ($99.7M).

Long Term Liabilities: HSTM's short term assets ($223.0M) exceed its long term liabilities ($46.6M).


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%1.4%markettop25%3.7%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


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.


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

Management

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

2.2yrs

Average management tenure


CEO

Bobby Frist (52yo)

30.1yrs

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 ($USD602.40K) is below average for companies of similar size in the US market ($USD2.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Frist
Chairman & CEO30.1yrsUS$602.40k17.13% $143.4m
J. Pearson
President & COO1.8yrsUS$695.81k0.50% $4.2m
Jeffrey Cunningham
Senior VP & CTO2.6yrsUS$482.35k0.0082% $68.5k
Michael Sousa
Senior VP & President of Provider Solutions5.7yrsUS$728.82k0.054% $450.3k
Scott Roberts
CFO and Senior VP of Accounting & Finance1yrsno data0.013% $108.8k
Mollie Condra
Vice President of Investor Relations & Communications0yrsno datano data
Michael Collier
Senior VP of Business Development0yrsno data0.033% $277.5k
Scott Fenstermacher
Head of Sales & VP2.6yrsno datano data
Trisha Coady
Senior VP & GM of Clinical Solutions1.3yrsno data0.012% $101.0k
M. McQuigg
Senior Vice President of hStream Solutions1.1yrsno data0.0021% $17.7k

2.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HSTM's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Frist
Chairman & CEO30.1yrsUS$602.40k17.13% $143.4m
Thompson Dent
Lead Independent Director5.2yrsUS$97.61k0.37% $3.1m
Jeffrey McLaren
Independent Director30.1yrsUS$90.11k0.044% $366.8k
C. Harris
Independent Director10.1yrsUS$90.11k0.080% $672.8k
William Stead
Independent Director22.1yrsUS$90.11k0.083% $690.8k
Michael Shmerling
Independent Director15.1yrsUS$90.11k0.36% $3.0m
Linda Rebrovick
Independent Director19.1yrsUS$90.11k0.12% $975.2k
Frank Gordon
Independent Director18.1yrsUS$92.11k0.63% $5.3m
Deborah Tate
Independent Director10.1yrsUS$90.11k0.050% $418.2k

18.1yrs

Average Tenure

63yo

Average Age

Experienced Board: HSTM's board of directors are seasoned and experienced ( 18.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.


Top Shareholders

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$836.980m
  • Shares outstanding: 32.38m
  • 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 offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the training, certification, assessment, development, clinical development, talent management, performance appraisal, and other needs, as well as training, implementation, and account management services for the healthcare community. It also provides applications for recruiting and applicant tracking, learning, performance appraisal, compensation management, succession planning, competency management, disclosure management, clinical development, simulation-based education, and industry-sponsored training. In addition, the company offers Verity, a SaaS-based credentialing, privileging, and enrollment solution. It provides its solutions to private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies. The company was founded in 1990 and is headquartered in Nashville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:42
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.