Health Catalyst, Inc. (HCAT): fair value, margin of safety and Wheel Score

Is HCAT undervalued?

At 1.80 (close of 16 Oct 2026), HCAT trades 64% below the GLS average fair value of 4.95. That average comes from 1 models run on the latest filings, and 1 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Health Catalyst, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

Only 1 of the nine models produced a value (10 Cap); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.

The nightly engine files HCAT under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for HCAT

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is average - HCAT passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 1.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC -42.7%, ROE -72.4%, ROA -35.4% - with debt at 0.70 times equity and a free-cash-flow yield of 9.6%.

Health Catalyst, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Recurring Technology 100% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 45: Weak

HCAT scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 25/25, Health 11/20, Moat 3/15, Premium 5/20, Stability 8/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.

Implied volatility is 124%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. The option chain is deep: 54,393 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 307k shares a day on a market cap of $135M, with a beta of 1.54 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 8 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 9 Nov 2026 (after the close), 24 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Medical - Healthcare Information Services

The 12 companies below are the closest to Health Catalyst, Inc. by market cap within the Medical - Healthcare Information Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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