Latest Ratios: P/E Ratio 46.6x · EV/EBITDA 12.7x · ROE 5.1%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $834M | $695M | $971M | $829M | $763M | $833M | $699M | $882M | $781M | $746M | $803M |
| Enterprise Value | $812M | $674M | $932M | $809M | $740M | $816M | $694M | $781M | $647M | $661M | $754M |
| P/E Ratio → | 46.64 | 37.82 | 48.18 | 54.06 | 63.69 | 146.44 | 49.64 | 61.82 | 24.15 | 74.71 | 208.75 |
| P/S Ratio | 2.74 | 2.29 | 3.33 | 2.97 | 2.86 | 3.25 | 2.85 | 3.47 | 3.37 | 3.01 | 3.55 |
| P/B Ratio | 2.42 | 1.96 | 2.70 | 2.43 | 2.28 | 2.46 | 2.09 | 2.61 | 2.45 | 2.48 | 2.81 |
| P/FCF | 13.98 | 11.66 | 32.91 | 13.42 | 15.44 | 21.39 | 20.62 | 20.20 | 31.49 | 25.86 | 85.20 |
| P/OCF | 13.17 | 10.98 | 16.85 | 12.96 | 14.91 | 19.66 | 19.47 | 13.43 | 18.06 | 15.96 | 33.15 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.22 | 3.20 | 2.90 | 2.77 | 3.18 | 2.83 | 3.07 | 2.79 | 2.67 | 3.34 |
| EV / EBITDA | 12.75 | 10.58 | 14.90 | 14.17 | 14.69 | 18.18 | 15.08 | 18.34 | 16.28 | 19.53 | 27.14 |
| EV / EBIT | 40.14 | 29.03 | 43.78 | 50.50 | 59.47 | 101.26 | 43.87 | 53.07 | 41.74 | 70.26 | 122.59 |
| EV / FCF | — | 11.30 | 31.57 | 13.10 | 14.98 | 20.93 | 20.48 | 17.89 | 26.08 | 22.92 | 79.94 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.7% | 64.7% | 66.4% | 66.0% | 65.8% | 64.5% | 63.5% | 59.1% | 58.5% | 57.2% | 57.2% |
| Operating Margin | 6.7% | 6.7% | 7.3% | 5.7% | 4.7% | 3.1% | 6.5% | 5.8% | 6.7% | 4.0% | 2.5% |
| Net Profit Margin | 6.0% | 6.0% | 6.9% | 5.5% | 4.5% | 2.3% | 5.8% | 6.2% | 13.9% | 4.0% | 1.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.1% | 5.1% | 5.7% | 4.5% | 3.6% | 1.7% | 4.2% | 4.8% | 10.4% | 3.4% | 1.3% |
| ROA | 3.6% | 3.6% | 4.0% | 3.0% | 2.5% | 1.2% | 2.8% | 3.4% | 7.6% | 2.5% | 1.0% |
| ROIC | 4.7% | 4.7% | 5.0% | 3.8% | 3.0% | 1.9% | 4.2% | 5.2% | 5.8% | 3.3% | 1.9% |
| ROCE | 5.1% | 5.1% | 5.5% | 4.2% | 3.2% | 2.1% | 4.1% | 4.1% | 4.8% | 3.2% | 1.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.04 | 0.04 | 0.06 | 0.06 | 0.07 | 0.09 | 0.10 | 0.09 | — | — | — |
| Debt / EBITDA | 0.23 | 0.23 | 0.32 | 0.35 | 0.46 | 0.65 | 0.69 | 0.72 | — | — | — |
| Net Debt / Equity | — | -0.06 | -0.11 | -0.06 | -0.07 | -0.05 | -0.01 | -0.30 | -0.42 | -0.28 | -0.17 |
| Net Debt / EBITDA | -0.34 | -0.34 | -0.63 | -0.35 | -0.45 | -0.40 | -0.10 | -2.37 | -3.38 | -2.50 | -1.79 |
| Debt / FCF | — | -0.36 | -1.33 | -0.33 | -0.46 | -0.46 | -0.14 | -2.31 | -5.42 | -2.94 | -5.26 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($36M) exceeds total debt ($15M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.96 | 0.96 | 1.32 | 1.10 | 0.98 | 1.06 | 0.96 | 2.14 | 2.30 | 1.98 | 1.87 |
| Quick Ratio | 0.96 | 0.96 | 1.32 | 1.10 | 0.98 | 1.06 | 0.96 | 2.14 | 2.30 | 1.98 | 1.87 |
| Cash Ratio | 0.46 | 0.46 | 0.84 | 0.60 | 0.46 | 0.52 | 0.39 | 1.64 | 1.61 | 1.30 | 1.09 |
| Asset Turnover | — | 0.58 | 0.57 | 0.56 | 0.54 | 0.53 | 0.49 | 0.52 | 0.53 | 0.60 | 0.57 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 46.81 | 44.21 | 50.29 | 58.42 | 49.65 | 68.73 | 43.63 | 64.62 | 56.03 | 76.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.5% | 0.4% | 0.4% | — | 0.0% | 0.0% | 0.0% | 4.1% | — | — |
| Payout Ratio | 20.3% | 20.3% | 17.0% | 20.1% | — | 0.3% | 0.3% | 0.4% | 100.4% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.1% | 2.6% | 2.1% | 1.8% | 1.6% | 0.7% | 2.0% | 1.6% | 4.1% | 1.3% | 0.5% |
| FCF Yield | 7.2% | 8.6% | 3.0% | 7.5% | 6.5% | 4.7% | 4.9% | 4.9% | 3.2% | 3.9% | 1.2% |
| Buyback Yield | 3.6% | 4.3% | 0.1% | 1.2% | 3.1% | 0.7% | 2.9% | 0.1% | 0.0% | 0.1% | 0.0% |
| Total Shareholder Yield | 4.0% | 4.9% | 0.5% | 1.6% | 3.1% | 0.7% | 2.9% | 0.1% | 4.2% | 0.1% | 0.0% |
| Shares Outstanding | — | $30M | $31M | $31M | $31M | $32M | $32M | $32M | $32M | $32M | $32M |
Enterprise ERP Competitive Displacement
With a forward P/E of 36.42, HealthStream trades at a significant premium to its modest growth rate, as indicated by a high PEG ratio of 6.49, suggesting that investors are pricing the stock as a defensive, low-volatility utility rather than a high-growth software disruptor.
The current valuation multiples appear to reflect the market's appreciation for the company's recurring revenue model and regulatory-driven moat. However, the disconnect between the high P/E and the single-digit revenue growth warrants caution, as it implies that any deceleration in hospital spending could lead to a meaningful multiple contraction.
Based on the reported figures, ROIC has remained consistently low, fluctuating between 0.6% and 1.8% over the last ten quarters, which suggests that the company's historical reliance on acquisitions has inflated the capital base without delivering a commensurate increase in underlying operational returns.
The persistent gap between invested capital and returns indicates that the company struggles to generate significant economic profit above its cost of capital. Investors should monitor whether the ongoing transition to the unified CredentialStream platform can eventually drive the margin expansion necessary to improve these return metrics.
According to quarterly data, the company's asset turnover has remained stagnant at approximately 0.15, while DSO has fluctuated between 39 and 52 days, highlighting the inherent difficulty in optimizing working capital within the complex, multi-stage billing cycles typical of the U.S. healthcare provider market.
The lack of clear improvement in asset turnover suggests that the company has not yet achieved the operational scale required to significantly enhance its capital efficiency. This inefficiency appears to be a structural byproduct of the firm's reliance on large-scale hospital implementations, which often involve lengthy payment and integration timelines.
As reported in financial statements, the company maintains a robust liquidity position with a current ratio consistently above 1.0 and a negligible debt-to-equity ratio of 0.04, which provides a substantial buffer against potential sector-specific downturns or unexpected disruptions in hospital capital expenditure budgets.
This conservative financial posture effectively eliminates near-term refinancing risk and allows the company to navigate periods of industry volatility without the pressure of debt service. While this strength is a clear positive, it also raises questions about whether management is being too cautious with its capital allocation.
The most commonly misapplied metric for this business model is the standard SaaS revenue growth rate, which obscures the company's true value as a regulatory compliance infrastructure provider that prioritizes long-term contract retention over rapid, high-churn customer acquisition typical of pure-play software firms.
Analysts often penalize the company for its low growth, failing to account for the non-discretionary nature of its clinical certification and credentialing tools. A more appropriate framework would focus on net revenue retention and platform stickiness, which better capture the durability of the company's earnings in a mature market.
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying HSTM stock.
HealthStream, Inc.'s current P/E ratio is 46.6x. The historical average is 56.4x. This places it at the 40th percentile of its historical range.
HealthStream, Inc.'s current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.9x.
HealthStream, Inc.'s return on equity (ROE) is 5.1%. The historical average is -1.4%.
Based on historical data, HealthStream, Inc. is trading at a P/E of 46.6x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
HealthStream, Inc.'s current dividend yield is 0.43% with a payout ratio of 20.3%.
HealthStream, Inc. has 64.7% gross margin and 6.7% operating margin.
HealthStream, Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.