Streamline Health Solutions (STRM) AI Stock Analysis

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Streamline Health Solutions

(NASDAQ:STRM)

43Neutral

Streamline Health Solutions faces significant financial challenges, including operational losses, high leverage, and negative cash flow, which weigh heavily on its overall score. Technical analysis shows some positive signs but is counteracted by valuation concerns due to negative earnings and no dividend yield. The earnings call offers some optimism with strategic restructuring and SaaS revenue growth, but the outlook remains cautious due to cash and liquidity issues.

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

Market Cap

$11.26M

Dividend YieldN/A

Average Volume (3M)8.61K

Price to Earnings (P/E)―

Beta (1Y)2.02

Revenue Growth-20.67%

EPS GrowthN/A

CountryUS

Employees70

SectorHealthcare

Sector Strength48

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)-0.42

Shares Outstanding4,331,315

10 Day Avg. Volume7,499

30 Day Avg. Volume8,613

Financial Highlights & Ratios

PEG Ratio-0.02

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio-3.33

Enterprise Value/Market Cap-192.85

Enterprise Value/Revenue-26.14

Enterprise Value/Gross Profit-233.62

Enterprise Value/Ebitda51.48

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

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

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

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.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
18.59M	0.00	22.60M	24.89M	17.38M	11.35M
	Gross Profit
9.30M	0.00	11.54M	11.49M	8.80M	5.66M
	EBIT
-6.78M	0.00	-19.65M	-10.83M	-10.77M	-5.84M
	EBITDA
-2.97M	0.00	-12.82M	-6.25M	-2.93M	-4.80M
	Net Income Common Stockholders
-9.39M	0.00	-18.70M	-11.38M	-6.92M	-4.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
754.00K	0.00	3.19M	6.60M	9.88M	2.41M
	Total Assets
35.97M	0.00	41.73M	61.52M	61.81M	25.98M
	Total Debt
12.26M	12.12B	10.57M	9.75M	10.14M	2.72M
	Net Debt
11.51M	12.12B	7.38M	3.15M	256.00K	312.00K
	Total Liabilities
22.05M	23.30B	22.92M	26.01M	27.77M	8.49M
	Stockholders Equity
13.91M	12.28B	18.81M	35.51M	34.04M	17.49M
Cash Flow		Free Cash Flow
-3.37M	0.00	-3.84M	-9.08M	-5.00M	-7.58M
	Operating Cash Flow
-2.69M	0.00	-2.21M	-7.14M	-3.50M	-5.76M
	Investing Cash Flow
-679.00K	0.00	-1.62M	-1.94M	-13.17M	9.46M
	Financing Cash Flow
1.57M	0.00	428.00K	5.79M	24.15M	-2.94M

Streamline Health Solutions Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.55

Price Trends

50DMA

2.84

Negative

100DMA

3.28

Negative

200DMA

3.84

Negative

Market Momentum

MACD

<0.01

Negative

RSI

44.20

Neutral

STOCH

25.81

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 2.55 is below the 20-day moving average (MA) of 2.67, below the 50-day MA of 2.84, and below the 200-day MA of 3.84, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.81 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 (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%
STRM	43 Neutral	$11.26M	―	-65.35%	―	-20.67%	―
BCDA	43 Neutral	$14.47M	―	-737.89%	―	-87.84%	59.34%
CTXR	38 Underperform	$7.67M	―	-52.85%	―	―	8.99%
LPTX	31 Underperform	$15.54M	―	-202.81%	―	―	64.01%
PRPH	25 Underperform	$13.69M	―	-58.71%	―	-79.66%	-141.87%
MOVE	23 Underperform	$6.37M	―	-439.23%	―	―	56.73%

* Healthcare Sector Average

Performance Comparison

STRM

Streamline Health Solutions

2.55

-2.25

-46.88%

PRPH

Prophase Labs

0.34

-4.73

-93.29%

LPTX

Leap Therapeutics

0.40

-2.35

-85.45%

CTXR

Citius Pharmaceuticals

0.79

-16.40

-95.40%

BCDA

BioCardia

2.74

-3.20

-53.87%

MOVE

Movano

1.30

-4.98

-79.30%

Streamline Health Solutions Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q3-2024)

% Change Since: -13.85%|

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.

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.