HealthStream

Valuation Analysis

About the Company

HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company offers hStream, a technology platform; CredentialStream, provides healthcare organizations with tools to support the provider lifecycle management from recruiting, application submission, verification of licensure and other credentials, privileging, appointments by credentialing committees, enrollment, network, management, onboarding, and performance evaluations of providers; ShiftWizard; and Competency Suite, AI/ML-driven clinical competency development system. It also provides applications for performance appraisal, competency management, disclosure management, clinical competency, assessment, development, simulation-based education, clinical rotation

HealthStream Stock at a Glance

HealthStream (HSTM) is currently trading at $29.07 with a market capitalization of $849.3M. The trailing P/E ratio stands at 43.39x, with a forward P/E of 33.61x. The 52-week range spans from $19.50 to $29.63; the current price is 1.9% below the yearly high. Year-over-year revenue growth stands at +10.5%. The net profit margin stands at 6.39%.

💰 Dividend

HealthStream pays an annual dividend of $0.13 per share, representing a yield of 0.45%. The payout ratio stands at 19.1%.

📊 Analyst Rating

2 analysts rate HealthStream (HSTM) on consensus: Buy. The average price target is $32.00, implying +10.08% from the current price. Analyst price targets range from $24.00 to $40.00.

HealthStream: The Investment Case in Detail

HealthStream (HSTM) operates in the Healthcare — specifically Health Information Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.5% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 42.9% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 64.89%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

At a PEG of 3.31, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 33.61x is meaningfully below the trailing 43.39x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 94.5% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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