HealthStream

HSTM

Medical - Healthcare Information Services · Healthcare

Price

$28.48

-0.46 (-1.59%)

Market Cap

$832.0M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−4.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 31.6M (2021) → 30.1M (2025)

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 wel

Winston Score History

Politician Trades

3 trades / 12mo

1 Congressional buy and 2 sells on HSTM in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+42.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$51M/ year

→ Flat (+4% vs prior year)

16.8% of revenue

In line with sector average (18%)

Steady R&D investment year-over-year

Insider Activity

20.7%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$49M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

HealthStream is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

65.8%

Premium pricing power — 65.8% gross margin

Operating Margin

9.3%

Modest — 9.3% operating margin

ROCE

2.1%

Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+6.6%

Slow sales growth (6.6% YoY)

EPS YoY

+5.7%

Modest earnings growth (5.7% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

318%

Turns 318% of profit into real cash

FCF Margin

19.2%

Converts sales into free cash efficiently (19.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

42.8x

Pricey — P/E 42.8

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+5.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (42.8 → 37.1)

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Dividends

Dividend Yield

0.48%

Small dividend — 0.48% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+11.9%

Dividend growing fast (11.9% YoY)

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