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Streamline Health Solutions (STRM)
NASDAQ:STRM
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Streamline Health Solutions
(NASDAQ:STRM)
35Underperform
Streamline Health Solutions (STRM) vs. S&P 500 (SPY)
Market Cap
$9.74M
Dividend YieldN/A
Average Volume (3M)9.34K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth-22.49%
EPS Growth54.21%
CountryUS
Employees77
SectorHealthcare
Sector Strength74
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-2.38
Shares Outstanding4,273,175
10 Day Avg. Volume12,089
30 Day Avg. Volume9,336
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.73
Price to Cash Flow (P/CF)-1.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Streamline Health Solutions Business Overview & Revenue Model
Company DescriptionStreamline Health Solutions (STRM) is a healthcare technology company focused on providing innovative software solutions to improve financial performance and operational efficiency for healthcare providers. The company operates primarily in the health information technology sector, offering a suite of products designed to enhance revenue cycle management, coding, and clinical documentation improvement processes for hospitals and healthcare facilities.
How the Company Makes MoneyStreamline Health Solutions generates revenue through the sale and licensing of its software products and services designed to optimize healthcare providers' revenue cycle management and clinical documentation processes. The company offers subscription-based models, software licenses, and professional services, including consulting and training, which contribute to its earnings. Additionally, Streamline Health Solutions may engage in partnerships with other healthcare technology firms or service providers to expand its market reach and enhance its product offerings.
Streamline Health Solutions Financial Statement Overview
Summary
Streamline Health Solutions shows a worrying financial profile characterized by significant operational losses, high leverage, and negative cash flow. While revenue growth in the TTM period is a positive sign, the company is struggling with profitability and cash conversion issues. High debt levels further exacerbate potential risks, demanding urgent strategic adjustments to improve financial health.Income Statement
The income statement shows a concerning trend with persistent net losses and negative EBIT and EBITDA margins. The company's TTM revenue has grown significantly, but this is overshadowed by substantial negative EBIT, indicating operational inefficiencies. Gross profit margin is very high, suggesting potential pricing power or cost control at the gross level, yet this does not translate into profitability due to high operating expenses.30
Negative
Balance Sheet
The balance sheet reveals high leverage with a significant debt-to-equity ratio, posing a risk in terms of financial stability. Despite positive stockholders' equity, the equity ratio is relatively low, indicating potential solvency concerns. The company's liabilities significantly outweigh its assets, which is a critical risk factor.20
Very Negative
Cash Flow
Cash flow analysis indicates severe issues with sustaining positive free cash flow, as operating cash flow is significantly negative. The free cash flow to net income ratio is unfavorable, reflecting difficulties in converting earnings to cash. The company also faces challenges in managing capital expenditures effectively.25
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 18.59M | 22.60M | 24.89M | 17.38M | 11.35M | 20.74M | Gross Profit |
| 9.30M | 11.54M | 11.49M | 8.80M | 5.66M | 13.26M | EBIT |
| -6.78M | -19.65M | -10.83M | -10.77M | -5.84M | -1.52M | EBITDA |
| -2.97M | -12.82M | -6.25M | -2.93M | -4.80M | -5.00M | Net Income Common Stockholders |
| -9.39M | -18.70M | -11.38M | -6.92M | -4.80M | -2.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 665.47K | 3.19M | 6.60M | 9.88M | 2.41M | 1.65M | Total Assets |
| 16.92M | 41.73M | 61.52M | 61.81M | 25.98M | 31.65M | Total Debt |
| 2.63M | 10.57M | 9.75M | 10.14M | 2.72M | 3.83M | Net Debt |
| 1.97M | 7.38M | 3.15M | 256.00K | 312.00K | 2.18M | Total Liabilities |
| 8.80M | 22.92M | 26.01M | 27.77M | 8.49M | 15.65M | Stockholders Equity |
| 8.12M | 18.81M | 35.51M | 34.04M | 17.49M | 16.00M |
| Cash Flow | Free Cash Flow | ||||
| -3.37M | -3.84M | -9.08M | -5.00M | -7.58M | -3.42M | Operating Cash Flow |
| -2.69M | -2.21M | -7.14M | -3.50M | -5.76M | -8.00K | Investing Cash Flow |
| -679.00K | -1.62M | -1.94M | -13.17M | 9.46M | -3.41M | Financing Cash Flow |
| 1.57M | 428.00K | 5.79M | 24.15M | -2.94M | 2.69M |
Streamline Health Solutions Technical Analysis
Negative
2.29
Price Trends
3.27
Negative
3.36
Negative
4.32
Negative
Market Momentum
-0.12
Positive
30.70
Neutral
25.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRM, the sentiment is Negative. The current price of 2.29 is below the 20-day moving average (MA) of 2.80, below the 50-day MA of 3.27, and below the 200-day MA of 4.32, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 30.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STRM.
Streamline Health Solutions Risk Analysis
Streamline Health Solutions disclosed 39 risk factors in its most recent earnings report. Streamline Health Solutions reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Streamline Health Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Performance Comparison
STRM
Streamline Health Solutions
2.29
-3.11
-57.59%
HSTM
HealthStream
31.34
6.55
26.42%
OMCL
Omnicell
31.08
3.76
13.76%
Streamline Health Solutions Earnings Call Summary
Earnings Call Date: Dec 16, 2024 | % Change Since: -32.45% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as strong SaaS revenue growth and successful client renewals, alongside significant challenges like a decline in total revenue, increased net loss due to impairment charges, and anticipated SaaS revenue decline. The strategic restructuring and improved adjusted EBITDA are promising, but cash and liquidity concerns remain.Highlights
SaaS Revenue Growth
SaaS revenue grew 22% in the third quarter and the first 9 months of 2023 compared to the same prior year periods.
Successful Strategic Restructuring
The strategic restructuring resulted in significant cost savings and a lowered breakeven run rate.
Notable Client Renewals
Converted some single-year renewal contracts to 3-year contracts, and a 5-year renewal was signed with a client transitioning to Epic's EHR.
Implementation Success
Successfully completed a $1 million SaaS ACV RevID project with a large multi health system client.
Improved Adjusted EBITDA
Generated $0.4 million of adjusted EBITDA in Q3 2023, compared to a loss of $1.2 million in Q3 2022.
Lowlights
Revenue Decline
Total revenue was $6.1 million in Q3 2023 compared to $6.2 million during the prior year period and $17.2 million for the first 9 months of 2023 compared to $18.1 million for the same period in 2022.
Increased Net Loss
Net loss totaled $11.9 million in Q3 2023 compared to a loss of $3.1 million in Q3 2022, primarily due to a $10.7 million noncash impairment charge.
Anticipated SaaS Revenue Decline
Expected sequential decline of quarterly SaaS revenue in Q4 2023 and Q1 2024 due to the nonrenewal of a legacy client.
Cash and Liquidity Concerns
Cash on hand was $2.6 million as of October 31, 2023, compared to $6.6 million at January 31, 2023.
Company Guidance
During the third quarter earnings call for Streamline Health Solutions (STRM), management provided detailed guidance on several key metrics. The company reported total revenue of $6.1 million for the quarter, with SaaS revenue growing by 22% year-over-year. The strategic restructuring executed in October 2023 is expected to lower the future breakeven run rate, targeting a $15.5 million SaaS ARR run rate to achieve persistent adjusted EBITDA. As of the call, the booked SaaS ACV stands at $14.5 million, with $11.2 million already implemented. Operating expenses were notably impacted by a $10.7 million noncash impairment charge. The company anticipates sequential declines in SaaS revenue due to a legacy client's nonrenewal, with growth resuming in the second half of fiscal 2024. The balance sheet showed $2.6 million in cash and a term loan balance of $9.4 million. Management emphasized ongoing efforts to improve the company's financial flexibility and liquidity position, with an update expected soon.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.