Health Catalyst Inc Common Stock (HCAT)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a student of both Mr. Graham and Mr. Buffett, and I begin with the question: does this business earn durable profits? For Health Catalyst, the filed record says no. In fiscal 2023, the company reported revenue of $295.9M and net income of -$118.1M. In fiscal 2024, revenue was $306.6M and net income -$69.5M. In fiscal 2025, revenue was $311.1M and net income -$178.0M. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $70.5M and net income of -$40.5M, or diluted EPS -$0.55. That revenue is below fiscal Q2 2025's $80.7M, so the top line is shrinking while losses continue. The FairStock calculations at the 2026-10-13 close of $1.74 show a negative P/E of -0.47, P/B of 1.29, ROE of -118.12%, ROCE of -3.02%, and D/E of 1.69. The Altman Z-Score of -4.98 flags distress. On the positive side, trailing free cash flow is $6.6M, a 5.0% FCF yield, and Piotroski is 5/9. But FCF is tiny against net losses, and the Lynch category is none because of losses in each of the last four years. A healthcare analytics platform may have switching costs, but I see no proof of a moat in the numbers. At a $130.9M market cap and FairStock score 38/100, this is not a Graham bargain; it is a speculative bet on a turnaround. I would require evidence of sustained positive earnings and improving revenue before calling it cheap.

In plain English: Health Catalyst sells data and analytics software and services to healthcare organizations. The business looks weak today: it has lost money for years, and in the latest reported quarter it lost money again while revenue fell from the same quarter a year earlier. At $1.74, the price may look low, but because earnings are negative and returns are poor, it does not look clearly cheap; it looks more like a risky turnaround.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer