HSTM Stock Analysis: HealthStream | NASDAQ
Health Information Services | NASDAQ, USA | Market Cap: 844m USD | 12M Return: 5.4% | US42222N1037 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 5.62M
EPS Trend: 92.5%
Qual. Beats: 3
Rev. Trend: 97.3%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
HealthStream, Inc. (NASDAQ: HSTM) is a Nashville-based SaaS provider serving U.S. healthcare organizations. Its platform, hStream, supports credentialing (CredentialStream), scheduling (ShiftWizard), and AI/ML-driven clinical competency development (Competency Suite), along with performance appraisal, quality management, simulation-based education, and onboarding tools. Customers include hospitals and health systems (private, not-for-profit, and government), pharmaceutical and medical device companies, and nursing schools. The company was incorporated in 1990 and went public in 2000.
HealthStream operates within the Health Care Technology sub-industry, a sector characterized by subscription-based software sold to healthcare providers to streamline workforce, compliance, and training functions. SaaS-based healthcare technology vendors typically benefit from recurring revenue tied to mandatory regulatory, credentialing, and continuing-education requirements across the U.S. healthcare system.
- Hospital workforce credentialing demand drives CredentialStream subscription growth
- Healthcare budget pressures weigh on customer renewal pricing and margins
- AI clinical competency tools expand addressable market opportunity
| Net Income: 21.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -1.02 > 1.0 |
| NWC/Revenue: 2.36% < 20% (prev 9.83%; Δ -7.47% < -1%) |
| CFO/TA 0.14 > 3% & CFO 71.8m > Net Income 21.2m |
| Net Debt (-53.3m) to EBITDA (71.7m): -0.74 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (29.4m) vs 12m ago -3.55% < -2% |
| Gross Margin: 65.08% > 18% (prev 65.64%; Δ -0.56% > 0.5%) |
| Asset Turnover: 62.86% > 50% (prev 59.02%; Δ 3.83% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.01 (Total Current Assets 130.2m - Total Current Liabilities 122.6m) / Total Assets 521.6m |
| B: 0.26 (Retained Earnings 134.1m / Total Assets 521.6m) |
| C: 0.05 (EBIT TTM 27.2m / Avg Total Assets 510.9m) |
| D: 2.16 (Book Value of Equity 356.6m / Total Liabilities 165.0m) |
| Altman-Z'' = 3.56 = A |
| DSRI: 1.08 (Receivables 36.8m/31.5m, Revenue 321.1m/295.2m) |
| GMI: 1.01 (GM 65.64% / 65.08%) |
| AQI: 1.08 (AQ_t 0.70 / AQ_t-1 0.65) |
| SGI: 1.09 (Revenue 321.1m / 295.2m) |
| TATA: -0.10 (NI 21.2m - CFO 71.8m) / TA 521.6m) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of August 31, 2026, the stock is trading at USD 29.38 with a total of 172,413 shares traded. Over the past week, the price has changed by +1.77%, over one month by +4.31%, over three months by +14.95% and over the past year by +5.40%.
Current recommended Stop Loss: 26.80 (which is 8.8% or 2.8 ATR below the current price).
HealthStream has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold HSTM.
- StrongBuy: 2
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 34.5 | 17.4% |
P/E Trailing = 40.0972
P/E Forward = 45.6621
P/S = 2.6288
P/B = 2.359
P/EG = 3.8056
Revenue TTM = 321.1m USD
EBIT TTM = 27.2m USD
EBITDA TTM = 71.7m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 13.4m USD (from shortLongTermDebtTotal, last quarter) (leases 13.4m already included)
Net Debt = -53.3m USD (calculated: Debt 13.4m - CCE 66.7m)
Enterprise Value = 790.9m USD (844.2m + Debt 13.4m - CCE 66.7m)
Interest Coverage Ratio = unknown (Ebit TTM 27.2m / Interest Expense TTM 0.0)
EV/FCF = 16.19x (Enterprise Value 790.9m / FCF TTM 48.8m)
FCF Yield = 6.18% (FCF TTM 48.8m / Enterprise Value 790.9m)
FCF Margin = 15.21% (FCF TTM 48.8m / Revenue TTM 321.1m)
Net Margin = 6.60% (Net Income TTM 21.2m / Revenue TTM 321.1m)
Gross Margin = 65.08% ((Revenue TTM 321.1m - Cost of Revenue TTM 112.1m) / Revenue TTM)
Gross Margin QoQ = 65.35% (prev 65.82%)
Tobins Q-Ratio = 1.52 (Enterprise Value 790.9m / Total Assets 521.6m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 13.4m)
Taxrate = 23.24% (6.42m / 27.6m)
NOPAT = 20.9m (EBIT 27.2m * (1 - 23.24%))
Current Ratio = 1.06 (Total Current Assets 130.2m / Total Current Liabilities 122.6m)
Debt / Equity = 0.04 (Debt 13.4m / totalStockholderEquity, last quarter 356.6m)
Debt / EBITDA = -0.74 (Net Debt -53.3m / EBITDA 71.7m)
Debt / FCF = -1.09 (Net Debt -53.3m / FCF TTM 48.8m)
Total Stockholder Equity = 353.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.15% (Net Income 21.2m / Total Assets 521.6m)
RoE = 6.01% (Net Income TTM 21.2m / Total Stockholder Equity 353.0m)
RoCE = 6.83% (EBIT 27.2m / Capital Employed (Total Assets 521.6m - Current Liab 122.6m))
RoIC = 5.46% (NOPAT 20.9m / Invested Capital 382.9m)
WACC = 6.42% (E(844.2m)/V(857.6m) * Re(6.52%) + D(13.4m)/V(857.6m) * Rd(0.0%) * (1-Tc(0.23)))
Discount Rate = 6.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.37 | Cagr: -1.55%
[DCF] Terminal Value 74.59% ; FCFF base≈50.1m ; Y1≈47.8m ; Y5≈45.7m
[DCF] Fair Price = 26.39 (EV 718.4m - Net Debt -53.3m = Equity 771.7m / Shares 29.2m; r=8.35% [WACC [floored]]; 5y FCF grow -5.98% → 2.50% )
EPS Correlation: 92.46 | EPS CAGR: 18.11% | SUE: 2.01 | # QB: 3
Revenue Correlation: 97.27 | Revenue CAGR: 4.92% | SUE: 1.79 | # QB: 4
EPS current Quarter (2026-09-30): EPS=0.14 | Chg30d=-26.32% | Revisions=+0% | Analysts=1
EPS current Year (2026-12-31): EPS=0.73 | Chg30d=-7.01% | Revisions=+0% | GrowthEPS=+4.3% | GrowthRev=+8.3%
EPS next Year (2027-12-31): EPS=0.89 | Chg30d=+2.31% | Revisions=+25% | GrowthEPS=+21.2% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: +25% (up=1, down=0)