Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $254.04M
• Dividend Yield: N/A
• Average Volume (3M): 572.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 4.88%
• EPS Growth: 37.87%
• Country: US
• Employees: 1,500
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.01
• Shares Outstanding: 69,601,234
• 10 Day Avg. Volume: 421,645
• 30 Day Avg. Volume: 572,126
• PEG Ratio: N/A
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.09
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: -1.55
• 1Y Price Target: $8.17
• Price Target Upside: 111.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: $4.00 ▲(3.36%Upside)

Health Catalyst's strong earnings call performance and successful platform launch are offset by financial performance challenges and valuation concerns. Revenue growth and strategic shifts are positive, but profitability and cash flow issues, alongside a negative P/E ratio, weigh on the overall score.

Positive Factors

Financial Performance

Health Catalyst reported revenue and adjusted EBITDA that exceeded consensus estimates, showing strong financial performance.

Market Reception

The new Ignite platform is seeing strong market reception, with management anticipating 20 new clients in the first half of the year.

Valuation

HCAT is trading at a notable discount to its peers, suggesting that the stock might be undervalued and could see price appreciation with a little consistency.

Negative Factors

Growth Prospects

HCAT's revenue growth has slowed significantly, raising concerns about the company's long-term growth prospects.

Market Challenges

The Budget Reconciliation Bill may reduce the total number of insured lives in the U.S., impacting Medicaid enrollment and causing challenges for HCAT.

Operational Delays

There are delays in Professional Services revenue, particularly with Health Information Exchange clients, which could affect the company's financial performance.

Health Catalyst Business Overview & Revenue Model

Company Description

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations. Its offerings include data and analytics platform, a commercial-grade data and analytics platform for the healthcare sector; AI and data science, providing integration of AI into existing business intelligence tools, increasing analytics accuracy; population health management identifies improvement across the care continuum as well as actionable guidance for success and automated workflows; financial transformation providing costing and labor productivity insights and revenue capture; quality and safety improvement using clinical quality and patient safety data, analytics, and expert services; and national data ecosystem for thought leadership and mutual knowledge exchange to transform care delivery through next-gen insights. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is based in South Jordan, Utah.

How the Company Makes Money

Health Catalyst makes money primarily through the licensing of its software platform and analytics applications to healthcare organizations, including hospitals, health systems, and clinics. The company employs a subscription-based revenue model, where clients pay recurring fees for access to its technology and services. Key revenue streams include software subscriptions, professional services such as implementation and consulting, and maintenance and support contracts. Additionally, Health Catalyst may engage in strategic partnerships with other healthcare technology firms to expand its offerings and customer base, further contributing to its revenue growth.

Health Catalyst Financial Statement Overview

Summary

Health Catalyst shows consistent revenue growth but struggles with profitability and cash flow. The balance sheet is moderate, yet high net debt poses risks if cash flows don't improve. Overall, financial performance is mixed, with growth potential but significant challenges.

Income Statement

Health Catalyst has shown consistent revenue growth, with a revenue increase from $306.58 million to $311.27 million in the TTM. However, profitability remains a challenge, with negative EBIT and net income margins. Gross profit margin has decreased, indicating pressure on cost management. Despite growing revenue, the company is yet to achieve profitability.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, with total debt being a significant portion of stockholders' equity. The equity ratio stands at a healthy level, indicating that a substantial portion of assets is funded by equity. However, the high net debt may pose risks if cash flows do not improve.

Cash Flow

Health Catalyst is experiencing challenges in generating free cash flow, with negative free cash flow in the TTM. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. The company needs to focus on improving operational efficiency to enhance cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	306.58M	295.94M	276.24M	241.93M	188.84M
Gross Profit	140.78M	131.83M	133.19M	117.57M	90.77M
EBITDA	-27.10M	-68.28M	-82.92M	-101.68M	-79.47M
Net Income	-69.50M	-118.15M	-137.40M	-153.21M	-115.02M
Balance Sheet
Total Assets	858.93M	701.81M	752.29M	832.10M	577.74M
Cash, Cash Equivalents and Short-Term Investments	392.00M	317.73M	363.49M	444.98M	270.87M
Total Debt	402.26M	249.07M	247.97M	204.61M	195.28M
Total Liabilities	493.72M	334.89M	327.28M	310.00M	301.64M
Stockholders Equity	365.21M	366.92M	425.01M	522.10M	276.10M
Cash Flow
Free Cash Flow	-1.84M	-47.39M	-52.68M	-41.59M	-36.61M
Operating Cash Flow	14.56M	-33.08M	-35.27M	-23.12M	-26.15M
Investing Cash Flow	-22.90M	20.29M	-39.02M	-139.68M	-82.56M
Financing Cash Flow	151.75M	2.73M	-2.61M	264.08M	182.61M

Health Catalyst Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCAT, the sentiment is Positive. The current price of 3.87 is above the 20-day moving average (MA) of 3.87, below the 50-day MA of 3.91, and below the 200-day MA of 5.63, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 24.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCAT.

Health Catalyst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRX	67 Neutral	$239.88M	―	-12.90%	―	20.66%	17.97%
HSTM	64 Neutral	$802.20M	42.05	5.40%	0.45%	3.36%	7.51%
HCAT	60 Neutral	$254.04M	―	-19.80%	―	4.88%	37.87%
DH	59 Neutral	$561.94M	―	-86.36%	―	-3.04%	-152.59%
SOPH	59 Neutral	$248.61M	―	-60.75%	―	4.66%	11.33%
EVH	58 Neutral	$1.12B	―	-10.99%	―	10.24%	2.63%
Sector *	46 Neutral	C$195.87M	-3.29	-23.14%	1.84%	20.75%	-0.36%

Health Catalyst Corporate Events

Health Catalyst Stockholders Approve Key Governance Changes

On July 9, 2025, Health Catalyst, Inc. held its annual meeting of stockholders, where four proposals were voted on. The stockholders elected two Class III directors, ratified the appointment of Ernst & Young LLP as the independent auditor, approved executive compensation, and supported a proposal to declassify the board of directors. These decisions reflect ongoing governance and operational strategies aimed at enhancing the company’s leadership structure and financial oversight.

The most recent analyst rating on (HCAT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.