Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $271.44M
• Dividend Yield: N/A
• Average Volume (3M): 551.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 4.88%
• EPS Growth: 37.87%
• Country: US
• Employees: 1,500
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.01
• Shares Outstanding: 69,601,234
• 10 Day Avg. Volume: 598,884
• 30 Day Avg. Volume: 551,676
• PEG Ratio: -0.25
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -156.28
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: -3.18
• 1Y Price Target: $7.82
• Price Target Upside: 98.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Health Catalyst shows potential with revenue growth and a positive earnings outlook. However, profitability challenges, cash flow issues, and a bearish technical outlook weigh on the stock. The successful launch of the Ignite platform and strategic board changes support future growth prospects, but investors should be cautious due to current financial and macroeconomic uncertainties.

Positive Factors

Financial Performance

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

Organic Growth

No mergers and acquisitions are expected in the near term, indicating a positive outlook on organic growth prospects with the existing product suite.

Platform Adoption

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

Negative Factors

Market Concerns

Investors reacted negatively to the 10% dilution associated with the acquisition of Upfront Healthcare, as the deal was financed with a mix of cash and stock.

Operational Challenges

There remains some warning signs with the business, such as delayed bookings and implementations in the non-Ignite business, specifically Life Sciences and Health Information Exchange.

Regulatory Risks

There are incremental risks to the outlook, such as tariffs and potential Medicaid cuts that could impact the client base.

Health Catalyst Business Overview & Revenue Model

Company Description

Health Catalyst (HCAT) is a leading provider of data and analytics technology and services, primarily catering to the healthcare sector. The company offers a comprehensive suite of software applications designed to help healthcare organizations improve clinical, financial, and operational outcomes. Health Catalyst's core products include a data platform, analytics applications, and professional services that enable data-driven decision-making and enhance performance across healthcare networks.

How the Company Makes Money

Health Catalyst generates revenue through a multi-faceted business model that includes software subscriptions, professional services, and data analytics solutions. The company primarily earns income from subscription fees for its cloud-based data platform and analytics applications, which healthcare organizations use to gain actionable insights and improve operational efficiencies. Additionally, Health Catalyst offers professional services, including implementation, training, and consulting services, which provide a significant revenue stream. The company also benefits from strategic partnerships with healthcare providers and organizations that further expand its reach and enhance its offerings. By leveraging its robust suite of products and services, Health Catalyst is able to deliver value to its clients while maintaining a stable and growing revenue base.

Health Catalyst Financial Statement Overview

Summary

Health Catalyst is growing its revenue, though it struggles with profitability and efficient cost management. A balanced balance sheet and positive cash flow trends suggest potential for future liquidity improvements, but profitability remains an issue.

Income Statement

Health Catalyst has shown consistent revenue growth over the past years, with a revenue growth rate of 3.6% from 2023 to 2024. However, the company remains unprofitable with negative EBIT and net profit margins, indicating ongoing operational challenges. The gross profit margin has remained relatively stable, but substantial net losses indicate that cost management and operational efficiency need improvement.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging debt, but there is room for improvement. The equity ratio is healthy at 42.5%, showing a solid capital structure. However, persistent negative net income affects return on equity, which remains negative.

Cash Flow

There is a significant improvement in operating cash flow, turning positive in 2024, which is a positive sign for future liquidity. Free cash flow also turned positive, indicating improved cash management. However, the company's free cash flow to net income ratio is negative, reflecting ongoing challenges in translating revenues into cash profits.

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
	EBIT
-69.81M	-126.90M	-140.00M	-143.65M	-96.13M
	EBITDA
-27.10M	-68.28M	-82.92M	-101.68M	-79.47M
	Net Income Common Stockholders
-69.50M	-118.15M	-137.40M	-153.21M	-115.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
392.00M	317.73M	363.49M	444.98M	270.87M
	Total Assets
858.93M	701.81M	752.29M	832.10M	577.74M
	Total Debt
402.26M	249.07M	247.97M	204.61M	195.28M
	Net Debt
152.62M	142.79M	131.66M	11.38M	103.33M
	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: Negative
• Last Price: 3.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCAT, the sentiment is Negative. The current price of 3.94 is below the 20-day moving average (MA) of 4.08, below the 50-day MA of 4.13, and below the 200-day MA of 6.36, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 12.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCAT.

Health Catalyst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCAT	63 Neutral	$271.44M	―	-19.80%	―	4.88%	37.87%
Sector *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
GLUE	52 Neutral	$252.81M	61.90	2.88%	―	―	61.09%
CVRX	52 Neutral	$178.60M	―	-76.01%	―	25.62%	11.86%
OABI	49 Neutral	$189.62M	―	-21.32%	―	27.07%	6.74%
ABSI	45 Neutral	$353.34M	―	-48.98%	―	-9.95%	20.78%

Health Catalyst Corporate Events

Health Catalyst Announces Board Changes Amid Strong Growth

On February 20, 2025, Anita Pramoda resigned from the Health Catalyst Board, effective March 1, 2025, and the Board approved accelerating the vesting of her RSUs. Her resignation was not due to any conflict with the company. Health Catalyst reported strong financial results for 2024, with a total revenue of $307 million and an Adjusted EBITDA of $26 million, and anticipates further growth in 2025. The company also announced leadership changes, including the appointment of Dr. Jill Hoggard Green to the Board and promotions within the leadership team.