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Streamline Health Solutions (STRM)
NASDAQ:STRM

Streamline Health Solutions (STRM) AI Stock Analysis

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Streamline Health Solutions

(NASDAQ:STRM)

Rating:59Neutral
Price Target:
$5.50
▲(5.97%Upside)
Streamline Health Solutions' overall stock score is heavily influenced by its financial struggles, which significantly lower its score. However, strong technical momentum and a promising merger announcement with MDaudit provide notable positive offsets. The negative valuation metrics and high financial risk temper enthusiasm, but the corporate event suggests potential future improvements.

Streamline Health Solutions (STRM) vs. SPDR S&P 500 ETF (SPY)

Streamline Health Solutions Business Overview & Revenue Model

Company DescriptionStreamline Health Solutions, Inc. offers health information technology solutions and associated services for hospitals and health systems in the United States and Canada. It provides computer software-based solutions, professional consulting, and auditing and coding services, which capture, aggregate, and translate structured and unstructured data to deliver predictive insights. The company also offers coding and clinical documentation improvement (CDI) solutions, which include an integrated cloud-based software suite, CDI, and abstracting and physician query; and eValuator, a coding analysis platform, as well as software services. In addition, it provides financial management solutions, including accounts receivable management, denials management, claims processing, spend management, and audit management; patient care solutions; Cerner Command Language (CCL) reporting; and custom integration services for CDI/abstracting, training, and audit services. The company sells its solutions and services through direct sales force and reseller partnerships. Streamline Health Solutions, Inc. was incorporated in 1989 and is based in Alpharetta, Georgia.
How the Company Makes MoneyStreamline Health Solutions generates revenue through the sale and subscription of its software solutions, which are primarily targeted at healthcare providers looking to enhance their revenue cycle processes. The company charges licensing fees for its software products and also earns recurring revenue through subscription-based services, which may include software updates, technical support, and additional features. Furthermore, Streamline Health Solutions engages in professional services for implementation, training, and consulting, which constitute another revenue stream. Partnerships with other healthcare technology firms and entities may also play a role in expanding their market reach and enhancing their product offerings.

Streamline Health Solutions Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q3-2024)
|
% Change Since: 75.34%|
Next Earnings Date:Jun 17, 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.
Q3-2024 Updates
Positive Updates
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.
Negative Updates
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.

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
30
Negative
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.
Balance Sheet
20
Very Negative
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.
Cash Flow
25
Negative
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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
18.59M0.0022.60M24.89M17.38M11.35M
Gross Profit
9.30M0.0011.54M11.49M8.80M5.66M
EBIT
-6.78M0.00-19.65M-10.83M-10.77M-5.84M
EBITDA
-2.97M0.00-12.82M-6.25M-2.93M-4.80M
Net Income Common Stockholders
-9.39M0.00-18.70M-11.38M-6.92M-4.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
754.00K0.003.19M6.60M9.88M2.41M
Total Assets
35.97M0.0041.73M61.52M61.81M25.98M
Total Debt
12.26M12.12B10.57M9.75M10.14M2.72M
Net Debt
11.51M12.12B7.38M3.15M256.00K312.00K
Total Liabilities
22.05M23.30B22.92M26.01M27.77M8.49M
Stockholders Equity
13.91M12.28B18.81M35.51M34.04M17.49M
Cash FlowFree Cash Flow
-3.37M0.00-3.84M-9.08M-5.00M-7.58M
Operating Cash Flow
-2.69M0.00-2.21M-7.14M-3.50M-5.76M
Investing Cash Flow
-679.00K0.00-1.62M-1.94M-13.17M9.46M
Financing Cash Flow
1.57M0.00428.00K5.79M24.15M-2.94M

Streamline Health Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.19
Price Trends
50DMA
2.78
Positive
100DMA
3.19
Positive
200DMA
3.52
Positive
Market Momentum
MACD
0.53
Negative
RSI
84.68
Negative
STOCH
99.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRM, the sentiment is Positive. The current price of 5.19 is above the 20-day moving average (MA) of 2.97, above the 50-day MA of 2.78, and above the 200-day MA of 3.52, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 84.68 is Negative, neither overbought nor oversold. The STOCH value of 99.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks
1.
We may not be able to generate sufficient cash flows or raise additional debt and equity capital to fund our ongoing operations. We will need to raise additional funding, which may not be available on acceptable terms, if at all. If we are unable to raise additional capital in amounts and on terms sufficient to fund our ongoing operations, our lack of additional capital and results of operations could limit our ability to continue operations. Q3, 2024

Streamline Health Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$21.46M-65.35%-20.78%49.22%
53
Neutral
$5.23B3.23-44.27%2.82%16.82%0.11%
47
Neutral
$15.52M-58.71%-79.66%-141.87%
39
Underperform
$11.70M-737.89%-99.36%63.06%
38
Underperform
$7.92M-60.06%8.99%
31
Underperform
$14.86M-202.81%64.01%
23
Underperform
$4.48M-439.23%56.73%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STRM
Streamline Health Solutions
5.19
-0.70
-11.88%
PRPH
Prophase Labs
0.38
-4.48
-92.18%
LPTX
Leap Therapeutics
0.40
-1.95
-82.98%
CTXR
Citius Pharmaceuticals
0.87
-15.13
-94.56%
BCDA
BioCardia
2.17
-2.23
-50.68%
MOVE
Movano
0.62
-4.94
-88.85%

Streamline Health Solutions Corporate Events

M&A Transactions
Streamline Health Solutions Announces Merger with MDaudit
Positive
May 29, 2025

On May 29, 2025, Streamline Health Solutions entered into a merger agreement with MDaudit, under which MDaudit will acquire all outstanding shares of Streamline for $5.34 per share in cash, representing a 138% premium over Streamline’s closing price on May 28, 2025. This merger aims to combine Streamline’s pre-bill integrity solutions with MDaudit’s billing compliance and revenue integrity platform, enhancing the ability to unify data silos and drive coordinated actions across the revenue cycle continuum, ultimately improving financial stability for healthcare organizations.

The most recent analyst rating on (STRM) stock is a Buy with a $22.50 price target. To see the full list of analyst forecasts on Streamline Health Solutions stock, see the STRM Stock Forecast page.

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.