Is HEALTHSTREAM INC (HSTM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 2.2% / 30% | 8.6% / 30% | 5.9% / 30% | 1.1% / 5% | ✓ HALAL |
| DJIM | 2.2% / 33% | 8.6% / 33% | 5.9% / 33% | 1.1% / 5% | ✓ HALAL |
| MSCI | 2.8% / 33% | 11.0% / 33% | 7.5% / 33% | 1.1% / 5% | ✓ HALAL |
| S&P | 2.2% / 33% | 8.6% / 33% | 5.9% / 33% | 1.1% / 5% | ✓ HALAL |
| FTSE | 2.8% / 33% | 11.0% / 33% | 7.5% / 50% | 1.1% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 64.7% | |
| Operating Margin | 3.6% | |
| Net Margin | 6.0% | |
| Return on Equity (ROE) | 5.1% | |
| Return on Assets (ROA) | 2.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $63M |
| Free Cash Flow | $31M |
| Total Debt | $15M |
| Debt-to-Equity | 5.0 |
| Current Ratio | 1.0 |
| Total Assets | $520M |
Price & Trading
| Last Close | $21.25 |
| 50-Day MA | $21.09 |
| 200-Day MA | $24.91 |
| Avg Volume | 345K |
| Beta | 0.5 |
|
52-Week Range
$19.50
| |
About HEALTHSTREAM INC (HSTM)
HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company offers hStream, a technology platform; CredentialStream, provides healthcare organizations with tools to support the provider lifecycle management from recruiting, application submission, verification of licensure and other credentials, privileging, appointments by credentialing committees, enrollment, network, management, onboarding, and performance evaluations of providers; ShiftWizard; and Competency Suite, AI/ML-driven clinical competency development system. It also provides applications for performance appraisal, competency management, disclosure management, clinical competency, assessment, development, simulation-based education, clinical rotation and onboarding management, quality management, and industry training. The company's solutions help healthcare organizations in meeting their ongoing learning, clinical development, credentialing, and scheduling needs. It serves the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies, and nursing schools and students. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.
Purification Calculator
As a halal stock with 1.10% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is HEALTHSTREAM INC (HSTM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), HEALTHSTREAM INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is HEALTHSTREAM INC's debt ratio?
HEALTHSTREAM INC's debt ratio is 2.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.8%.
Does HEALTHSTREAM INC require dividend purification?
Yes, HEALTHSTREAM INC has an impermissible income ratio of 1.10%, which means 1.10% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are HEALTHSTREAM INC's key financial metrics?
HEALTHSTREAM INC has a market capitalization of $626M, trailing P/E ratio of 34.6, and revenue of $304M. The company maintains a gross margin of 64.7% and a net margin of 6.0%. Return on equity stands at 5.1%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.