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HSTM

BEARISH
$19.88 Live
HealthStream, Inc. · NASDAQ
Target $30.5 (+53.4%)
$19.5 52W Range $34.13

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
HSTM presents a contradictory profile: while the Piotroski F-Score of 7/9 indicates strong fundamental health and a clean balance sheet, the valuation is severely disconnected from intrinsic reality. The stock trades at $19.88, significantly above both its Graham Number ($12.82) and its growth-based intrinsic value ($4.27). This valuation gap is exacerbated by a collapse in earnings growth (-46.5% YoY) and a completely bearish technical trend (0/100). Despite low debt, the combination of crashing profitability and insider selling suggests a value trap scenario.

Key Strengths

Strong Piotroski F-Score (7/9) indicating operational health
Extremely low Debt/Equity ratio (0.05)
High Gross Margins (64.74%)
Consistent historical track record of beating EPS estimates over 25 quarters
Low dividend payout ratio (20.33%) providing room for dividend safety

Key Risks

Severe earnings contraction (-46.5% YoY)
Significant overvaluation relative to Graham Number and Intrinsic Value
Bearish technical momentum (0/100 trend score)
Liquidity concerns with Current Ratio (0.96) and Quick Ratio (0.77) below 1.0
Negative insider sentiment with recent officer selling
AI Fair Value Estimate
Based on comprehensive analysis
$12.82
-35.5% below current price

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