Fact based stock research
HealthStream (NasdaqGS:HSTM)

US42222N1037

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

HealthStream stock research in summary

healthstream.com

ANALYSIS: With an Obermatt Combined Rank of 39 (worse than 61% compared with investment alternatives), HealthStream (Health Care Technology, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of HealthStream are a good value (attractively priced) with a consolidated Value Rank of 82 (better than 82% of alternatives), show above-average growth (Growth Rank of 64) but are riskily financed (Safety Rank of 45), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 39, is a hold recommendation based on HealthStream's financial characteristics. As the company HealthStream's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 82) and above-average growth (Obermatt Growth Rank of 64), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 45) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	82
Growth Rank	64
Safety Rank	45
Combined Rank	39

Country	USA
Industry	Health Care Technology
Index	NASDAQ
Size class	Small

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: HealthStream

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	55	78	82
GROWTH
GROWTH	41	15	29	64
SAFETY
SAFETY	19	100	100	45
SENTIMENT
SENTIMENT	n/a	89	59	^new
360° VIEW
360° VIEW	n/a	53	25	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better HealthStream is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	55	78	82
GROWTH
GROWTH	41	15	29	64
SAFETY
SAFETY	19	100	100	45
COMBINED
COMBINED	4	67	67	39

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of HealthStream the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 82 (better than 82% compared with alternatives) for 2024, HealthStream shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for HealthStream. Price-to-Sales (P/S) is 76 which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value for HealthStream's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 63. Finally, compared with other companies in the same industry, dividend yields of HealthStream are expected to be higher than for 74% of all competitors (a Dividend Yield rank of 74). The only low rank is for expected profits with a Price-to-Profit Rank of 32, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 82, is a buy recommendation based on HealthStream's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	57	83	84	76
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	20	13	27	32
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	66	80	78	63
DIVIDEND YIELD
DIVIDEND YIELD	1	1	72	74
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	29	55	78	82

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of HealthStream; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 64 (better than 64% compared with alternatives), HealthStream shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for HealthStream. Profit Growth has a rank of 67 which means that currently professionals expect the company to grow its profits more than 67% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 85, and Stock Returns has a rank of 58 which means that the stock returns have recently been above 58% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 19 (81% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 64, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	30	21	34	19
PROFIT GROWTH
PROFIT GROWTH	60	15	48	67
CAPITAL GROWTH
CAPITAL GROWTH	n/a	28	51	85
STOCK RETURNS
STOCK RETURNS	70	63	21	58
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	41	15	29	64

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of HealthStream.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 45 (better than 45% compared with alternatives), the company HealthStream has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of HealthStream is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for HealthStream and the other two below average. Leverage is at a rank of 100 meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 43, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 57% of its competitors. Liquidity is at a rank of 1, meaning that the company generates less profit to service its debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 45 (worse than 55% compared with alternatives), HealthStream has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of HealthStream are on the safer side. Investors may have a short-term debt challenge and liquidity issues with HealthStream and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	74	100	100	100
REFINANCING
REFINANCING	12	13	33	43
LIQUIDITY
LIQUIDITY	30	76	76	1
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	19	100	100	45

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of HealthStream and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	20	25	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	89	74	^new
MARKET PULSE
MARKET PULSE	n/a	92	64	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	89	59	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for HealthStream.
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