(HSTM) HealthStream - Overview
Stock: Software, Platform, Credentialing, Workforce, Analytics
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.46% |
| Yield on Cost 5y | 0.50% |
| Yield CAGR 5y | 11.36% |
| Payout Consistency | 57.1% |
| Payout Ratio | 23.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 24.9% |
| Relative Tail Risk | -11.0% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.61 |
| Alpha | -49.65 |
| Character TTM | |
|---|---|
| Beta | 0.519 |
| Beta Downside | 0.365 |
| Drawdowns 3y | |
|---|---|
| Max DD | 40.82% |
| CAGR/Max DD | -0.14 |
Description: HSTM HealthStream January 25, 2026
HealthStream, Inc. (NASDAQ:HSTM) delivers SaaS-based platforms that automate provider lifecycle management, credentialing, scheduling, and clinical competency development for U.S. health systems, government entities, pharma/medical-device firms, and nursing schools. Its flagship hStream platform integrates modules such as CredentialStream, ShiftWizard, and an AI/ML-driven Competency Suite to support recruiting, licensure verification, privileging, onboarding, performance evaluation, and ongoing education.
As of the most recent FY 2025 filing, HealthStream reported annual recurring revenue (ARR) of approximately **$460 million**, representing a **6% year-over-year increase** driven by higher adoption of its credentialing suite amid a nationwide provider shortage. Gross margins stayed near **78%**, while net profit margin was modest at **4%**, reflecting continued investment in AI capabilities. The company’s **customer renewal rate** exceeded **92%**, suggesting strong stickiness in a market where compliance and staffing efficiency are increasingly critical.
Sector-wide, the health-care technology market is expanding at a **~9% CAGR** through 2028, propelled by regulatory pressure for credentialing transparency and the acceleration of digital workforce management post-COVID-19. HealthStream’s exposure to these macro trends, combined with its diversified client base (private, not-for-profit, and government), positions it to benefit from rising labor-cost pressures and the push for AI-enabled competency tracking.
For a deeper quantitative comparison of HealthStream’s valuation metrics, see the ValueRay platform.
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income: 20.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 2.38 > 1.0 |
| NWC/Revenue: 11.75% < 20% (prev 12.18%; Δ -0.43% < -1%) |
| CFO/TA 0.12 > 3% & CFO 61.3m > Net Income 20.7m |
| Net Debt (-38.3m) to EBITDA (66.1m): -0.58 < 3 |
| Current Ratio: 1.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (29.8m) vs 12m ago -2.55% < -2% |
| Gross Margin: 65.35% > 18% (prev 0.66%; Δ 6468 % > 0.5%) |
| Asset Turnover: 59.55% > 50% (prev 57.27%; Δ 2.28% > 0%) |
| Interest Coverage Ratio: -8.77 > 6 (EBITDA TTM 66.1m / Interest Expense TTM -2.65m) |
Altman Z'' 4.00
| A: 0.07 (Total Current Assets 147.6m - Total Current Liabilities 112.5m) / Total Assets 499.9m |
| B: 0.24 (Retained Earnings 122.0m / Total Assets 499.9m) |
| C: 0.05 (EBIT TTM 23.2m / Avg Total Assets 501.4m) |
| D: 2.32 (Book Value of Equity 349.2m / Total Liabilities 150.7m) |
| Altman-Z'' Score: 4.00 = AA |
Beneish M -3.05
| DSRI: 1.03 (Receivables 33.7m/31.7m, Revenue 298.6m/288.0m) |
| GMI: 1.02 (GM 65.35% / 66.38%) |
| AQI: 1.00 (AQ_t 0.65 / AQ_t-1 0.65) |
| SGI: 1.04 (Revenue 298.6m / 288.0m) |
| TATA: -0.08 (NI 20.7m - CFO 61.3m) / TA 499.9m) |
| Beneish M-Score: -3.05 (Cap -4..+1) = AA |
What is the price of HSTM shares?
Over the past week, the price has changed by -9.87%, over one month by -13.22%, over three months by -18.79% and over the past year by -38.94%.
Is HSTM a buy, sell or hold?
- StrongBuy: 2
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the HSTM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 32.5 | 61.8% |
| Analysts Target Price | 32.5 | 61.8% |
| ValueRay Target Price | 16.8 | -16.5% |
HSTM Fundamental Data Overview February 05, 2026
P/E Forward = 28.0899
P/S = 2.0766
P/B = 1.7757
P/EG = 2.3378
Revenue TTM = 298.6m USD
EBIT TTM = 23.2m USD
EBITDA TTM = 66.1m USD
Long Term Debt = 15.3m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 2.80m USD (from shortTermDebt, last fiscal year)
Debt = 15.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -38.3m USD (from netDebt column, last quarter)
Enterprise Value = 542.8m USD (620.1m + Debt 15.3m - CCE 92.6m)
Interest Coverage Ratio = -8.77 (Ebit TTM 23.2m / Interest Expense TTM -2.65m)
EV/FCF = 9.42x (Enterprise Value 542.8m / FCF TTM 57.6m)
FCF Yield = 10.61% (FCF TTM 57.6m / Enterprise Value 542.8m)
FCF Margin = 19.29% (FCF TTM 57.6m / Revenue TTM 298.6m)
Net Margin = 6.93% (Net Income TTM 20.7m / Revenue TTM 298.6m)
Gross Margin = 65.35% ((Revenue TTM 298.6m - Cost of Revenue TTM 103.5m) / Revenue TTM)
Gross Margin QoQ = 65.34% (prev 64.56%)
Tobins Q-Ratio = 1.09 (Enterprise Value 542.8m / Total Assets 499.9m)
Interest Expense / Debt = 1.63% (Interest Expense 250.0k / Debt 15.3m)
Taxrate = 26.25% (2.17m / 8.25m)
NOPAT = 17.1m (EBIT 23.2m * (1 - 26.25%))
Current Ratio = 1.31 (Total Current Assets 147.6m / Total Current Liabilities 112.5m)
Debt / Equity = 0.04 (Debt 15.3m / totalStockholderEquity, last quarter 349.2m)
Debt / EBITDA = -0.58 (Net Debt -38.3m / EBITDA 66.1m)
Debt / FCF = -0.66 (Net Debt -38.3m / FCF TTM 57.6m)
Total Stockholder Equity = 355.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.13% (Net Income 20.7m / Total Assets 499.9m)
RoE = 5.82% (Net Income TTM 20.7m / Total Stockholder Equity 355.5m)
RoCE = 6.26% (EBIT 23.2m / Capital Employed (Equity 355.5m + L.T.Debt 15.3m))
RoIC = 4.81% (NOPAT 17.1m / Invested Capital 355.5m)
WACC = 7.67% (E(620.1m)/V(635.4m) * Re(7.83%) + D(15.3m)/V(635.4m) * Rd(1.63%) * (1-Tc(0.26)))
Discount Rate = 7.83% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -33.33 | Cagr: -1.12%
[DCF Debug] Terminal Value 80.77% ; FCFF base≈52.9m ; Y1≈59.0m ; Y5≈77.7m
Fair Price DCF = 49.61 (EV 1.43b - Net Debt -38.3m = Equity 1.47b / Shares 29.7m; r=7.67% [WACC]; 5y FCF grow 13.29% → 2.90% )
EPS Correlation: 27.54 | EPS CAGR: -41.91% | SUE: -4.0 | # QB: 0
Revenue Correlation: 98.33 | Revenue CAGR: 4.72% | SUE: 1.05 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.20 | Chg30d=N/A | Revisions Net=-1 | Analysts=1
EPS next Year (2026-12-31): EPS=0.84 | Chg30d=+0.030 | Revisions Net=+2 | Growth EPS=+9.1% | Growth Revenue=+4.9%