HealthStream, Inc.

HealthStream, Inc.

HSTMยทNASDAQ

$25.22

-2.7%
HealthcareMedical - Healthcare Information Services

HealthStream, Inc. provides workforce and provider solutions for healthcare organizations in the United States. It operates through two segments, Workforce Solutions and Provider Solutions. The company offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the range of its clinical development, talent management, training, education, certification, scheduling, competency assessment, performance appraisal, and other needs, as well as implementation and account management services. It also provides applications for learning, performance appraisal, competency management, disclosure management, clinical assessment and development, simulation-based education, quality management, and industry training. In addition, the company offers VerityStream that delivers enterprise-class solutions to transform the healthcare provider experience for ambulatory surgery centers, urgent care facilities, clinics, medical groups, and other healthcare organizations; EchoCredentialing and MSOW platforms that manage medical staff credentialing, enrollment, and privileging processes for hospitals; and EchoOneApp, a provider enrollment platform for medical groups. Further, it provides CredentialMyDoc, a credentialing and enrollment SaaS solution for medical groups and surgery centers; CredentialStream, a SaaS-based provider credentialing, privileging, and enrollment solution; and NurseGrid Mobile for nurse managers. The company offers its solutions in healthcare industry companies that include private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through direct sales teams. HealthStream, Inc. was incorporated in 1990 and is headquartered in Nashville, Tennessee.

At a Glance

Live Snapshot
Market Cap$736.81M
EPS0.6100
P/E Ratio37.76
Earnings Date08/03/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 37.8).

Valuation inputs: P/E 37.8, earnings yield +2.6%, momentum -2.7%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +5.2%, ROIC +4.0%).

Profitability stack: net margin +6.0%, ROE +5.2%, ROIC +4.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +32.0%, momentum -2.7%, net margin +6.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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HealthStream, Inc. Market vs Earnings Trajectory

HSTM ยท NASDAQ

Loading price and EPS data...

HealthStream, Inc.

HealthStream, Inc. Fair Value Envelope

HSTM ยท NASDAQ

Our analysis suggests that HSTM has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $25.22, this represents a potential HIDDEN relative to our calculated worth for HealthStream, Inc..

Intrinsic Value
Current Price: $25.22
3Y+56.0%
5Y+39.0%
10Y+408.0%
3Y+14.0%
5Y+24.0%
10Y+35.0%
3Y+52.0%
5Y+30.0%
10Y+388.0%
3Y+24.0%
5Y+77.0%
10Y+161.0%
3Y+21.0%
5Y+76.0%
10Y+533.0%
3Y+5.0%
5Y+4.0%
10Y+31.0%
HealthStream, Inc.

HealthStream, Inc. Profit Bridge

HSTM ยท NASDAQ
Revenue304.06M
Cost of Goods Sold (107.21M)
Gross Profit196.85M
Operating Expenses (176.62M)
Operating Income20.24M
Interest Expense (0.00)
Other Income/Expense2.98M
Pretax Income23.22M
Income Tax (4.88M)
Net Income18.34M
Net Income
18.34M

Profitability Analysis

Gross Margin

64.7%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

6.7%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

6.0%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

21.0%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

64.74%
Gross Profit Margin
-3%
3Y-2.0%
5Y+2.0%
10Y+13.0%
6.66%
Operating Profit Margin
-9%
3Y+43.0%
5Y+3.0%
10Y+170.0%
6.03%
Net Profit Margin
-12%
3Y+33.0%
5Y+5.0%
10Y+263.0%
5.18%
Return on Equity
-7%
3Y+43.0%
5Y+23.0%
10Y+295.0%
3.52%
Return on Assets
-10%
3Y+45.0%
5Y+25.0%
10Y+272.0%
4.03%
Return on Invested Capital
-7%
3Y+59.0%
5Y+24.0%
10Y+257.0%
HSTM

HealthStream, Inc. Cash Conversion Engine

HSTM ยท NASDAQ
Net Income18.34M
Depreciation & Amortization43.48M
Stock-Based Compensation8.14M
Change in Working Capital-24.28M
Others12.52M
Capital Expenditures-3.69M
Free Cash Flow59.63M

Cash Flow Quality Analysis

FCF Conversion Rate

325.1%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

5.8%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+102.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$24.28M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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HealthStream, Inc. Funding & Solvency Profile

HSTM ยท NASDAQ
Cash & Cash Equivalents48.71M
Net Receivables43.44M
Inventory0.00
Other Current Assets23.08M
Total Current Assets133 M
Property, Plant & Equipment24.65M
Goodwill & Intangible Assets276.36M
Long-Term Investments0.00
Other Non-Current Assets93.41M
Total Non-Current Assets118 M
Total Assets
527.44M

Financial Health Analysis

Current Ratio

0.97x

Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.

Debt-to-Equity Ratio

0.50x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

-3491000

Negative working capital indicates short-term liabilities exceed short-term assetsโ€”potential liquidity stress.

Asset Composition

25% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Conservative with tight liquidity: Low debt is positive, but current ratio warrants attention. Consider whether the company is efficiently deploying its equity capital.

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HealthStream, Inc. Street Expectations Map

HSTM ยท NASDAQ

Wall Street analysts project that HSTM stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 24.00, with estimates ranging from a low of 24.00 to a high of 24.00.

Lowest Target
24.00
-4.84%
Consensus Target
24.00
-4.84%
Highest Target
24.00
-4.84%

The consensus 1-year price target stands at 24.00, with estimates ranging from a low of 24.00 to a high of 24.00.

Analyst Consensus Analysis

Upside Potential

-4.8%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

1.00x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

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HealthStream, Inc. Insider Positioning

HSTM ยท NASDAQ

During the last 12 months, insiders have sold $367K worth of HSTM shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

7.0K

172.23K

Net Activity

-172K

-$172K

3-6 Months

Bought

0

0.00

Sold

4.1K

99.11K

Net Activity

-99K

-$99K

6-9 Months

Bought

0

0.00

Sold

1.6K

40.23K

Net Activity

-40K

-$40K

9-12 Months

Bought

0

0.00

Sold

2.0K

55.94K

Net Activity

-56K

-$56K

Top Buyers

No buying activity

Top Sellers

1
OKP

O'Hara Kevin P

Officer: Executive Vice President

7.0K sharesโ€ข3 transactions

$177K

2
RL

Rebrovick Linda

Director

4.0K sharesโ€ข2 transactions

$100K

3
CJ

Cunningham Jeff

Officer: Chief Technology Officer

2.1K sharesโ€ข1 transactions

$51K

4
TTD

Taylor Tate Deborah

Director

1.6K sharesโ€ข1 transactions

$40K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $367K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$172K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

4 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.17%
Dividend Yield
26%
3Y-
5Y+9841.0%
10Y-
ย 

hstm Dividend History

HSTM
10Y CAGR 28%
Latest $0.035
Annual $0.163
Stable dividend payments
Last Period: +0%