A Business at a Glance
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HEALTHSTREAM INC
HSTM
$816M
Mkt Cap
$27.14
+2.82%
HEALTHSTREAM INC (HSTM) has a current P/E ratio of 44.5, compared to its historical median P/E of 51.5. The stock is currently considered Fair based on its historical valuation range.
HEALTHSTREAM INC (HSTM) has a 5-year average return on invested capital (ROIC) of 4.5%. This is below average and may indicate limited pricing power.
HEALTHSTREAM INC (HSTM) has a market capitalization of $795M. It is classified as a small-cap stock.
Yes, HEALTHSTREAM INC (HSTM) pays a dividend with a trailing twelve-month yield of 0.48%. The company also returns capital through share buybacks, with a buyback yield of 4.62%.
Based on historical P/E analysis, HEALTHSTREAM INC (HSTM) appears fair. The current P/E of 44.5 is 14% below its historical median of 51.5. The estimated fair value CAGR (P/E method) is 0.4%.
HEALTHSTREAM INC (HSTM) operates in the Services-Computer Programming, Data Processing, Etc. industry, within the Technology sector.
HEALTHSTREAM INC (HSTM) reported annual revenue of $304 million in its most recent fiscal year, based on SEC EDGAR filings.
Item 1. Business OVERVIEW AND HISTORY HealthStream’s focus is and has always been on improving the quality of healthcare through the development and support of the dedicated individuals who deliver care. Like healthcare itself, our mission remains constant, but how we accomplish that mission continues to evolve and improve over time. Originally, we pioneered the use of online learning to hospitals, which began with courses specifically tailored to educate healthcare professionals and meet hospitals' required regulatory needs, and we remain a leading innovator in those areas today. Since our inception, the scope of HealthStream’s Software-as-a-Service (SaaS) solutions has expanded well beyond our governance, risk, and compliance (GRC) offerings to include a diverse ecosystem of applications that optimize and support the healthcare workforce and the students preparing to enter that workforce.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 312M | 304M | 292M | 279M | 267M | 257M |
| Net Income | 20M | 18M | 20M | 15M | 12M | 5.8M |
| EPS | $0.67 | $0.61 | $0.66 | $0.50 | $0.39 | $0.18 |
| Free Cash Flow | 60M | 60M | 56M | 62M | 49M | 39M |
| ROIC | 6.3% | 5.7% | 6.5% | 4.8% | 3.4% | 2.3% |
| Gross Margin | - | 64.7% | 66.4% | 65.9% | 65.8% | 64.5% |
| Debt/Equity | 0.00 | 0.47 | 0.42 | 0.47 | 0.49 | 0.44 |
| Dividends/Share | $0.13 | $0.12 | $0.11 | $0.10 | $0.00 | $0.00 |
| Operating Income | 23M | 20M | 21M | 16M | 12M | 8.1M |
| Operating Margin | 7.5% | 6.7% | 7.3% | 5.7% | 4.7% | 3.1% |
| ROE | 5.7% | 5.1% | 5.7% | 4.5% | 3.6% | 1.7% |
| Shares Outstanding | 29M | 30M | 30M | 30M | 31M | 32M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 171M | 209M | 226M | 248M | 232M | 254M | 245M | 257M | 267M | 279M | 292M | 304M | 312M |
| Gross Margin | 56.6% | 57.2% | 66.8% | 64.8% | 58.5% | 59.1% | 63.5% | 64.5% | 65.8% | 65.9% | 66.4% | 64.7% | N/A |
| R&D | 16M | 24M | 24M | 24M | 26M | 29M | 32M | 42M | 44M | 46M | 49M | 51M | 53M |
| SG&A | 23M | 29M | 30M | 31M | 34M | 41M | 42M | 40M | 37M | 36M | 35M | 33M | 32M |
| EBIT | 16M | 14M | 7.2M | 9.4M | 15M | 15M | 16M | 8.1M | 12M | 16M | 21M | 20M | 23M |
| Op. Margin | 9.6% | 6.5% | 3.2% | 3.8% | 6.7% | 5.8% | 6.5% | 3.1% | 4.7% | 5.7% | 7.3% | 6.7% | 7.5% |
| Net Income | 10M | 8.6M | 3.8M | 10M | 32M | 16M | 14M | 5.8M | 12M | 15M | 20M | 18M | 20M |
| Net Margin | 6.1% | 4.1% | 1.7% | 4.0% | 13.9% | 6.2% | 5.8% | 2.3% | 4.5% | 5.5% | 6.9% | 6.0% | 6.4% |
| Non-Recurring | 0 | 72K | 0 | -97K | 0 | 0 | 0 | -21K | 25K | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 40.7% | 9.6% | 2.8% | 4.7% | 7.8% | 12.7% | 8.8% | 2.3% | 3.4% | 4.8% | 6.5% | 5.7% | 6.3% |
| ROE | 6.6% | 3.8% | 1.3% | 3.4% | 10.4% | 4.8% | 4.2% | 1.7% | 3.6% | 4.5% | 5.7% | 5.1% | 5.7% |
| ROA | 4.4% | 2.7% | 1.0% | 2.5% | 7.6% | 3.4% | 2.8% | 1.2% | 2.5% | 3.0% | 4.0% | 3.6% | 3.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 34M | 35M | 24M | 47M | 43M | 66M | 36M | 42M | 51M | 64M | 58M | 63M | 63M |
| Free Cash Flow | 30M | 27M | 19M | 41M | 36M | 44M | 34M | 39M | 49M | 62M | 56M | 60M | 60M |
| Owner Earnings | 20M | 15M | 2.0M | 21M | 17M | 34M | 3.5M | 269K | 9.7M | 19M | 12M | 12M | 11M |
| CapEx | 4.5M | 8.1M | 4.8M | 5.5M | 7.2M | 22M | 2.0M | 3.4M | 1.8M | 2.2M | 1.4M | 3.7M | 3.4M |
| Maint. CapEx | 11M | 17M | 20M | 24M | 24M | 28M | 30M | 37M | 38M | 41M | 41M | 43M | 44M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 11M | 17M | 20M | 24M | 24M | 28M | 30M | 37M | 38M | 41M | 41M | 43M | 44M |
| CapEx/OCF | 13.3% | 23.2% | 21.0% | 11.8% | 16.6% | 33.5% | 5.5% | 8.1% | 3.5% | 3.4% | 2.4% | 5.8% | 5.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 32M | 58K | 40K | 19K | 0 | 3.1M | 3.4M | 3.7M | 3.8M |
| Dividend Yield | N/A | N/A | N/A | N/A | 3.8% | 0.0% | 0.0% | 0.0% | N/A | 0.4% | 0.4% | 0.4% | 0.5% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 20M | 5.0M | 23M | 8.9M | 0 | 30M | 37M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | 2.9% | 0.6% | 3.1% | 1.1% | N/A | 4.2% | 4.6% |
| Stock-Based Comp | 3.2M | 3.3M | 1.9M | 1.7M | 1.8M | 4.2M | 2.2M | 5.3M | 3.6M | 4.2M | 4.5M | 8.1M | 8.3M |
| Debt Repayment | 0 | 0 | 0 | 0 | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -66M |
| Cash & Equiv. | 82M | 82M | 50M | 85M | 134M | 132M | 37M | 47M | 46M | 40M | 59M | 36M | 66M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.53 | 0.35 | 0.38 | 0.37 | 0.39 | 0.45 | 0.50 | 0.44 | 0.49 | 0.47 | 0.42 | 0.47 | 0.00 |
| Interest Coverage | 292.4 | 71.4 | 94.4 | 93.1 | 7745.5 | 1051.4 | 790.9 | 1150.7 | 401.6 | 372.5 | 210.8 | 200.4 | 200.4 |
| Equity | 168M | 280M | 286M | 300M | 319M | 338M | 334M | 339M | 334M | 341M | 359M | 354M | 352M |
| Total Assets | 257M | 380M | 396M | 411M | 442M | 490M | 500M | 487M | 498M | 500M | 511M | 520M | 527M |
| Total Liabilities | 89M | 99M | 110M | 111M | 123M | 151M | 166M | 148M | 164M | 159M | 151M | 166M | -7.0M |
| Intangibles | 15M | 56M | 78M | 68M | 59M | 60M | 101M | 89M | 82M | 68M | 56M | 65M | 64M |
| Retained Earnings | -7.0M | 1.6M | 5.3M | 18M | 32M | 48M | 62M | 68M | 80M | 92M | 109M | 124M | 128M |
| Working Capital | 97M | 120M | 82M | 99M | 135M | 119M | -4.7M | 6.5M | -2.8M | 12M | 37M | -4.5M | -3.5M |
| Current Assets | 175M | 210M | 177M | 200M | 241M | 225M | 115M | 107M | 114M | 130M | 153M | 120M | 133M |
| Current Liabilities | 77M | 89M | 95M | 101M | 107M | 105M | 119M | 100M | 117M | 118M | 116M | 124M | 137M |
| Per Share Data | |||||||||||||
| EPS | 0.37 | 0.28 | 0.12 | 0.31 | 1.00 | 0.49 | 0.44 | 0.18 | 0.39 | 0.50 | 0.66 | 0.61 | 0.67 |
| Owner EPS | 0.72 | 0.48 | 0.06 | 0.65 | 0.54 | 1.04 | 0.11 | 0.01 | 0.31 | 0.62 | 0.39 | 0.39 | 0.37 |
| Book Value | 5.98 | 9.10 | 9.14 | 9.30 | 9.90 | 10.51 | 10.43 | 10.44 | 10.78 | 11.20 | 11.85 | 11.77 | 12.01 |
| Cash Flow/Share | 1.22 | 1.13 | 0.77 | 1.45 | 1.34 | 2.04 | 1.12 | 1.31 | 1.65 | 2.10 | 1.90 | 2.11 | 2.18 |
| Dividends/Share | N/A | N/A | N/A | N/A | 1.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 | 0.11 | 0.12 | 0.13 |
| Shares Out. | 28.1M | 30.8M | 31.3M | 32.3M | 32.2M | 32.2M | 32.0M | 32.5M | 31.0M | 30.4M | 30.3M | 30.1M | 29.3M |
| Valuation | |||||||||||||
| P/E Ratio | 75.4 | 76.1 | 194.2 | 70.8 | 23.7 | 55.7 | 49.4 | 143.8 | 62.3 | 53.7 | 47.9 | 38.7 | 40.3 |
| P/FCF | 26.4 | 24.5 | 37.5 | 17.2 | 21.2 | 20.1 | 20.5 | 21.6 | 15.2 | 13.2 | 17.0 | 11.9 | 13.3 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 31.2 |
| Price/Book | 4.7 | 2.3 | 2.5 | 2.4 | 2.4 | 2.6 | 2.1 | 2.5 | 2.3 | 2.4 | 2.7 | 2.0 | 2.3 |
| Price/Sales | 4.2 | 3.7 | 3.1 | 3.5 | 3.6 | 3.3 | 2.9 | 3.3 | 2.6 | 2.6 | 2.9 | 2.8 | 2.6 |
| FCF Yield | 3.8% | 4.1% | 2.7% | 5.8% | 4.7% | 5.0% | 4.9% | 4.6% | 6.6% | 7.6% | 5.9% | 8.4% | 7.5% |
| Market Cap | 784M | 656M | 729M | 709M | 764M | 878M | 696M | 841M | 753M | 817M | 958M | 710M | 795M |
| Avg. Price | 25.62 | 25.11 | 22.66 | 23.24 | 26.10 | 26.37 | 22.15 | 25.80 | 22.09 | 23.90 | 28.04 | 28.61 | 27.14 |
| Year-End Price | 27.91 | 21.31 | 23.30 | 21.96 | 23.70 | 27.28 | 21.74 | 25.88 | 24.30 | 26.84 | 31.61 | 23.61 | 27.14 |
HEALTHSTREAM INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
HEALTHSTREAM INC trades at 44.5x trailing earnings, compared to its 15-year median P/E of 51.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 13.4x vs a median of 18.7x. The company's 5-year average ROIC is 4.5% with a gross margin of 65.5%. Total shareholder yield (dividends + buybacks) is 5.1%. At current prices, the estimated annualized return to fair value is +10.1%.
HEALTHSTREAM INC (HSTM) has a net profit margin of 6.0%. This is a modest margin.
HEALTHSTREAM INC (HSTM) generated $60 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HEALTHSTREAM INC (HSTM) has a debt-to-equity ratio of 0.47. This indicates a conservatively financed balance sheet.
HEALTHSTREAM INC (HSTM) reported earnings per share (EPS) of $0.61 in its most recent fiscal year.
HEALTHSTREAM INC (HSTM) has a return on equity (ROE) of 5.1%. This indicates moderate shareholder returns.
HEALTHSTREAM INC (HSTM) has a 5-year average gross margin of 65.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for HEALTHSTREAM INC (HSTM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HEALTHSTREAM INC (HSTM) has a book value per share of $11.77, based on its most recent annual SEC filing.