A Business at a Glance
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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 | 304M | 304M | 292M | 279M | 267M | 257M |
| Net Income | 18M | 18M | 20M | 15M | 12M | 5.8M |
| EPS | $0.61 | $0.61 | $0.66 | $0.50 | $0.39 | $0.18 |
| Free Cash Flow | 60M | 60M | 56M | 62M | 49M | 39M |
| ROIC | 5.0% | 5.7% | 6.5% | 4.8% | 3.4% | 2.5% |
| Gross Margin | 64.7% | 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 | $0.12 | $0.12 | $0.11 | $0.10 | $0.00 | $0.00 |
| Operating Income | 20M | 20M | 21M | 16M | 12M | 8.1M |
| Operating Margin | 6.7% | 6.7% | 7.3% | 5.7% | 4.7% | 3.1% |
| ROE | 5.2% | 5.1% | 5.7% | 4.5% | 3.6% | 1.7% |
| Shares Outstanding | 30M | 30M | 30M | 30M | 31M | 32M |
HEALTHSTREAM INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
HEALTHSTREAM INC trades at 33.3x trailing earnings, compared to its 15-year median P/E of 51.5x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 10.0x vs a median of 18.7x. The company's 5-year average ROIC is 4.6% with a gross margin of 65.5%. Total shareholder yield (dividends + buybacks) is 5.5%. At current prices, the estimated annualized return to fair value is +10.1%.
HEALTHSTREAM INC (HSTM) has a current P/E ratio of 33.3, compared to its historical median P/E of 51.5. The stock is currently considered Cheap based on its historical valuation range.
HEALTHSTREAM INC (HSTM) has a 5-year average return on invested capital (ROIC) of 4.6%. This is below average and may indicate limited pricing power.
HEALTHSTREAM INC (HSTM) has a market capitalization of $612M. It is classified as a small-cap stock.
Yes, HEALTHSTREAM INC (HSTM) pays a dividend with a trailing twelve-month yield of 0.61%. The company also returns capital through share buybacks, with a buyback yield of 4.91%.
Based on historical P/E analysis, HEALTHSTREAM INC (HSTM) appears cheap. The current P/E of 33.3 is 35% below its historical median of 51.5. The estimated fair value CAGR (P/E method) is -0.8%.
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.
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.