HSTM Stock Analysis: HealthStream | NASDAQ
Health Information Services | NASDAQ, USA | Market Cap: 893m USD | 12M Return: 0.6% | US42222N1037 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 5.47M
EPS Trend: 92.5%
Qual. Beats: 3
Rev. Trend: 97.3%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 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 September 27, 2026, the stock is trading at USD 29.10 with a total of 196,377 shares traded. Over the past week, the price has changed by -0.44%, over one month by +0.80%, over three months by +13.37% and over the past year by +0.63%.
Current recommended Stop Loss: 27.30 (which is 6.2% or 2.5 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 | 18.6% |
P/E Trailing = 41.1127
P/E Forward = 34.4828
P/S = 2.7812
P/B = 2.5259
P/EG = 2.8694
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 = 839.8m USD (893.1m + Debt 13.4m - CCE 66.7m)
Interest Coverage Ratio = unknown (Ebit TTM 27.2m / Interest Expense TTM 0.0)
EV/FCF = 17.19x (Enterprise Value 839.8m / FCF TTM 48.8m)
FCF Yield = 5.82% (FCF TTM 48.8m / Enterprise Value 839.8m)
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 = 1.61 (Enterprise Value 839.8m / 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 = 6.39% (E(893.1m)/V(906.5m) * Re(6.49%) + D(13.4m)/V(906.5m) * Rd(0.0%) * (1-Tc(0.23)))
Discount Rate = 6.49% (= 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=-26.32% | Revisions=-25% | 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: +0% (up=1, down=1)