HSTM Stock Analysis: HealthStream | NASDAQ
Health Information Services | NASDAQ, USA | Market Cap: 820m USD | 12M Return: 6.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 5.36M
EPS Trend: 90.6%
Qual. Beats: 2
Rev. Trend: 98.8%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 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: 19.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 0.78 > 1.0 |
| NWC/Revenue: -1.12% < 20% (prev 15.00%; Δ -16.12% < -1%) |
| CFO/TA 0.12 > 3% & CFO 63.4m > Net Income 19.9m |
| Net Debt (-52.4m) to EBITDA (69.9m): -0.75 < 3 |
| Current Ratio: 0.97 > 1.5 & < 3 |
| Outstanding Shares: last quarter (29.4m) vs 12m ago -3.80% < -2% |
| Gross Margin: 64.89% > 18% (prev 66.21%; Δ -1.32% > 0.5%) |
| Asset Turnover: 59.30% > 50% (prev 55.79%; Δ 3.51% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: -0.01 (Total Current Assets 133.0m - Total Current Liabilities 136.5m) / Total Assets 527.4m |
| B: 0.24 (Retained Earnings 128.5m / Total Assets 527.4m) |
| C: 0.05 (EBIT TTM 25.8m / Avg Total Assets 525.7m) |
| D: 2.01 (Book Value of Equity 352.0m / Total Liabilities 175.4m) |
| Altman-Z'' = 3.19 = A |
| DSRI: 1.13 (Receivables 43.4m/36.1m, Revenue 311.8m/292.4m) |
| GMI: 1.02 (GM 66.21% / 64.89%) |
| AQI: 1.12 (AQ_t 0.70 / AQ_t-1 0.62) |
| SGI: 1.07 (Revenue 311.8m / 292.4m) |
| TATA: -0.08 (NI 19.9m - CFO 63.4m) / TA 527.4m) |
| Beneish M = -2.79 (Cap -4..+1) = A |
As of July 14, 2026, the stock is trading at USD 28.72 with a total of 171,302 shares traded. Over the past week, the price has changed by -1.20%, over one month by +11.02%, over three months by +41.21% and over the past year by +6.57%.
Current recommended Stop Loss: 27.60 (which is 3.9% or 1.2 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 | 32 | 11.4% |
P/E Trailing = 41.9104
P/E Forward = 39.2157
P/S = 2.6312
P/B = 2.3281
P/EG = 3.2692
Revenue TTM = 311.8m USD
EBIT TTM = 25.8m USD
EBITDA TTM = 69.9m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 14.1m USD (from shortLongTermDebtTotal, last quarter) (leases 14.1m already included)
Net Debt = -52.4m USD (calculated: Debt 14.1m - CCE 66.5m)
Enterprise Value = 767.9m USD (820.4m + Debt 14.1m - CCE 66.5m)
Interest Coverage Ratio = unknown (Ebit TTM 25.8m / Interest Expense TTM 0.0)
EV/FCF = 12.80x (Enterprise Value 767.9m / FCF TTM 60.0m)
FCF Yield = 7.81% (FCF TTM 60.0m / Enterprise Value 767.9m)
FCF Margin = 19.25% (FCF TTM 60.0m / Revenue TTM 311.8m)
Net Margin = 6.39% (Net Income TTM 19.9m / Revenue TTM 311.8m)
Gross Margin = 64.89% ((Revenue TTM 311.8m - Cost of Revenue TTM 109.5m) / Revenue TTM)
Gross Margin QoQ = 65.82% (prev 63.80%)
Tobins Q-Ratio = 1.46 (Enterprise Value 767.9m / Total Assets 527.4m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 14.1m)
Taxrate = 22.76% (5.87m / 25.8m)
NOPAT = 19.9m (EBIT 25.8m * (1 - 22.76%))
Current Ratio = 0.97 (Total Current Assets 133.0m / Total Current Liabilities 136.5m)
Debt / Equity = 0.04 (Debt 14.1m / totalStockholderEquity, last quarter 352.0m)
Debt / EBITDA = -0.75 (Net Debt -52.4m / EBITDA 69.9m)
Debt / FCF = -0.87 (Net Debt -52.4m / FCF TTM 60.0m)
Total Stockholder Equity = 351.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.79% (Net Income 19.9m / Total Assets 527.4m)
RoE = 5.67% (Net Income TTM 19.9m / Total Stockholder Equity 351.4m)
RoCE = 6.60% (EBIT 25.8m / Capital Employed (Total Assets 527.4m - Current Liab 136.5m))
RoIC = 5.31% (NOPAT 19.9m / Invested Capital 375.3m)
WACC = 7.36% (E(820.4m)/V(834.4m) * Re(7.49%) + D(14.1m)/V(834.4m) * Rd(0.0%) * (1-Tc(0.23)))
Discount Rate = 7.49% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -42.22 | Cagr: -1.57%
[DCF] Terminal Value 76.44% ; FCFF base≈58.2m ; Y1≈62.4m ; Y5≈75.2m
[DCF] Fair Price = 41.30 (EV 1.15b - Net Debt -52.4m = Equity 1.21b / Shares 29.2m; r=8.35% [WACC [floored]]; 5y FCF grow 8.08% → 2.50% )
EPS Correlation: 90.58 | EPS CAGR: 22.07% | SUE: 0.93 | # QB: 2
Revenue Correlation: 98.77 | Revenue CAGR: 4.33% | SUE: 0.96 | # QB: 3
EPS current Quarter (2026-06-30): EPS=0.18 | Chg30d=+0.00% | Revisions=+0% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.19 | Chg30d=-5.00% | Revisions=-25% | Analysts=2
EPS current Year (2026-12-31): EPS=0.79 | Chg30d=+1.29% | Revisions=+25% | GrowthEPS=+12.1% | GrowthRev=+7.6%
EPS next Year (2027-12-31): EPS=0.86 | Chg30d=+0.58% | Revisions=+25% | GrowthEPS=+10.2% | GrowthRev=+4.9%
[Analyst] Revisions Ratio: +17% (up=2, down=1)