HealthStreamHSTM +0.16%94 Return-on-Tangible-Asset is 11.89% as of Mar. 2026, which is 95% above its 10-year median of 6.09. GuruFocus rates HSTM with a GF Score™ of 94/100 and a GF Value™ of $30.84 (Fairly Valued). The stock has 5 warning signs investors should review. Among 683 Healthcare Providers & Services companies, HealthStream ranks better than 78.77% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. HealthStream's annualizedNet Income for the quarter that ended in Mar. 2026 was $23.6 Mil. HealthStream's average total tangible assets for the quarter that ended in Mar. 2026 was $198.9 Mil. Therefore, HealthStream's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 11.89%.
The historical rank and industry rank for HealthStream's Return-on-Tangible-Asset or its related term are showing as below:
HSTM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.8 Med: 6.09 Max: 12.43
Current: 9.34
During the past 13 years, HealthStream's highest Return-on-Tangible-Asset was 12.43%. The lowest was 1.80%. And the median was 6.09%.
HSTM's Return-on-Tangible-Asset is ranked better than 78.77% of 683
companies
in the Healthcare Providers & Services industry
Industry Median: 2.43
vs HSTM: 9.34
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
HealthStream Return-on-Tangible-Asset Related Terms
HealthStream Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for HealthStream's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HSTM vs TALK, CERT, PHR: Return-on-Tangible-Asset Comparison
For the Health Information Services subindustry, HealthStream's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HealthStream Return-on-Tangible-Asset vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, HealthStream's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where HealthStream's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.89% mean?
HealthStream (HSTM) has a Return-on-Tangible-Asset of 11.89% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on HealthStream and its competitors. This is 95% above median its historical median of 6.09. Over the past decade, HealthStream's Return-on-Tangible-Asset has ranged from 1.80 to 12.43. According to the industry distribution chart, HealthStream ranks #145 out of 683 companies in the Healthcare Providers & Services industry, placing it in the top 21.2%.
Is HealthStream's Return-on-Tangible-Asset too high?
HealthStream's current Return-on-Tangible-Asset of 11.89% is 95% above median its 10-year median of 6.09. Over the past 10 years, this metric has ranged from a low of 1.80 to a high of 12.43. The Healthcare Providers & Services industry median Return-on-Tangible-Asset is 2.43. HealthStream's value of 11.89% is 389.3% above this industry median. Based on the distribution chart, HealthStream ranks #145 out of 683 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, HealthStream has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does HealthStream's Return-on-Tangible-Asset compare to TALK and CERT?
According to the Healthcare Providers & Services industry distribution chart, HealthStream ranks #145 out of 683 companies for Return-on-Tangible-Asset. This places HealthStream in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.43. HealthStream's value of 11.89% is 389.3% above this benchmark. Historically, HealthStream's own Return-on-Tangible-Asset has ranged from 1.80 to 12.43 over the past decade. While the company's 10-year median is 6.09 vs. the industry median of 2.43, HealthStream has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Healthcare Providers & Services company?
The median Return-on-Tangible-Asset among Healthcare Providers & Services companies is 2.43, based on 683 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HealthStream's current Return-on-Tangible-Asset of 11.89% is 389.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on HealthStream and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Asset is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HealthStream's current Return-on-Tangible-Asset is 11.89%, which is 95% above median its own 10-year median of 6.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HealthStream stock overvalued right now?
Based on GuruFocus' analysis, HealthStream (HSTM) is currently considered Fairly Valued. The stock's GF Value™ is $30.84, compared to a current price of $28.05 — trading 9% below its estimated fair value. The current Return-on-Tangible-Asset is 11.89%, which is 95% above median its 10-year median of 6.09 and 389.3% above the Healthcare Providers & Services industry median of 2.43. HealthStream's overall GF Score™ is 94/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For HealthStream (HSTM), the current Return-on-Tangible-Asset is 11.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HealthStream (HSTM) Overvalued in 2026?
Based on GuruFocus' analysis, HealthStream stock appears to be undervalued.
The current stock price of $28.05 is trading 9% below its estimated GF Value™ of $30.84.
GuruFocus considers HealthStream to be Fairly Valued.
Key valuation signals for HSTM:
Return-on-Tangible-Asset: 11.89% (95% above median its 10-year median of 6.09)
GF Value™: $30.84 vs. price of $28.05 (9% below fair value)
Industry Position: 389.3% above the Healthcare Providers & Services median (#145 of 683)
No single metric tells the full story. See the HSTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HealthStream Inc provides SaaS based applications for healthcare organizations all designed to improve business and clinical outcomes by supporting the people who deliver patient care. The company is focused on helping individuals and organizations in healthcare meet their ongoing learning, clinical development, credentialing, and scheduling needs. It also provides its solutions to nursing schools and nursing students.
94GF Score
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