HSTM Stock Analysis: HealthStream | NASDAQ

Provider Credentialing, Staff Scheduling, Clinical Competency, Healthcare Learning

Total Rating 70

Safety 88

Buy Signal 0.53

Health Information Services
Industry Rotation: +22.6

Market Cap: 1.01B
Avg Turnover: 5.64M

Risk 3d forecast

Volatility25.2%

VaR 5^th Pctl3.99%

VaR vs Median-3.88%

Choppyness50.4%

Reward TTM

Sharpe Ratio0.84

Rel. Str. IBD91.6

Rel. Str. Peer Group80.8

Character TTM

Beta0.160

Beta Downside-0.016

Hurst Exponent0.367

Drawdowns 3y

Max DD41.44%

CAGR/Max DD0.37

CAGR/Mean DD1.14

EPS (Earnings per Share)

EPS CAGR: 18.11%
EPS Trend: 92.5%

Last SUE: 2.01
Qual. Beats: 3

Revenue

Rev. CAGR: 4.92%
Rev. Trend: 97.3%

Last SUE: 1.79
Qual. Beats: 4

Warnings

Fakeout

Tailwinds

Rs Leader

Idiosyncratic Leader

Tailwind

Seasonality 11.7 years of data

Jan -0.2% 10

Feb +1.6% 19

Mar +0.6% 5

Apr -0.7% 8

May +3.6% 29

Jun +4.0% 22

Jul +1.4% 17

Aug -0.2% 7

Sep -0.0% 2

Oct -1.4% 0

Nov +0.6% 16

Dec -1.5% 11

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.

Description: HSTM HealthStream

HealthStream, Inc. (NASDAQ: HSTM) is a Software-as-a-Service (SaaS) provider serving healthcare organizations across the United States. The companys offerings are built around its hStream technology platform and include CredentialStream for provider lifecycle management (covering recruiting, credentialing, privileging, enrollment, and performance evaluations), ShiftWizard for staffing/scheduling, and an AI/ML-driven Competency Suite for clinical competency development. Additional applications address performance appraisal, disclosure management, simulation-based education, clinical rotation and onboarding management, quality management, and industry training, supporting healthcare organizations ongoing learning, clinical development, credentialing, and scheduling needs.

The companys customer base spans private, not-for-profit, and government healthcare entities, as well as pharmaceutical and medical device companies, nursing schools, and students. Founded in 1990 and headquartered in Nashville, Tennessee, HealthStream operates within the Health Care Technology sub-industry of the broader Health Care sector. As a small-cap U.S. listed stock, it exemplifies the niche but growing segment of vertical SaaS vendors focused exclusively on workforce, credentialing, and training workflows for healthcare providers.

Headlines to Watch Out For

Healthcare SaaS subscription revenue and net retention drive growth
ShiftWizard nurse scheduling adoption expands recurring hospital customer base
Credentialing compliance demand lifts CredentialStream subscription revenue

Piotroski VR-10 (Strict) 6.0

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)

Altman Z'' 3.56

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

Beneish M -2.86

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

What is the price of HSTM shares?

As of October 16, 2026, the stock is trading at USD 33.75 with a total of 245,710 shares traded. Over the past week, the price has changed by +3.94%, over one month by +13.83%, over three months by +19.61% and over the past year by +30.09%.

Current recommended Stop Loss: 32.80 (which is 2.8% or 1.3 ATR below the current price).

Is HSTM a buy, sell or hold?

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

What are the forecasts/targets for the HSTM price?

Analysts Target Price	34.5	2.2%

HealthStream (HSTM) - Fundamental Data Overview as of 12 October 2026

Market Cap USD = 1.01b (1.01b USD * 1.0 USD.USD)
P/E Trailing = 46.0139
P/E Forward = 33.7838
P/S = 3.1566
P/B = 2.4675
P/EG = 2.8196
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 = 960.3m USD (1.01b + Debt 13.4m - CCE 66.7m)
Interest Coverage Ratio = unknown (Ebit TTM 27.2m / Interest Expense TTM 0.0)
EV/FCF = 19.66x (Enterprise Value 960.3m / FCF TTM 48.8m)
FCF Yield = 5.09% (FCF TTM 48.8m / Enterprise Value 960.3m)
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 = 1.84 (Enterprise Value 960.3m / 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 = 6.45% (E(1.01b)/V(1.03b) * Re(6.54%) + D(13.4m)/V(1.03b) * Rd(0.0%) * (1-Tc(0.23)))
Discount Rate = 6.54% (= 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 = 25.22 (EV 718.4m - Net Debt -53.3m = Equity 771.7m / Shares 30.6m; 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=+0.00% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=0.73 | Chg30d=+0.00% | Revisions=+0% | GrowthEPS=+4.3% | GrowthRev=+8.3%
EPS next Year (2027-12-31): EPS=0.89 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+21.2% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: +0% (up=1, down=1)