Looking for growth without the hefty price tag? Consider NASDAQ:HQY.

Last update: Dec 15, 2023

Consider HEALTHEQUITY INC (NASDAQ:HQY) as an affordable growth stock, identified by our stock screening tool. NASDAQ:HQY is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Evaluating Growth: NASDAQ:HQY

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:HQY has achieved a 8 out of 10:

HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.49%, which is quite impressive.
HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.71% yearly.
The Revenue has grown by 16.81% in the past year. This is quite good.
Measured over the past years, HQY shows a very strong growth in Revenue. The Revenue has been growing by 30.29% on average per year.
Based on estimates for the next years, HQY will show a very strong growth in Earnings Per Share. The EPS will grow by 35.86% on average per year.
HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.12% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Valuation: NASDAQ:HQY

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:HQY has earned a 5 for valuation:

HQY's Price/Earnings ratio is a bit cheaper when compared to the industry. HQY is cheaper than 61.74% of the companies in the same industry.
64.35% of the companies in the same industry are more expensive than HQY, based on the Price/Forward Earnings ratio.
HQY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HQY is cheaper than 60.87% of the companies in the same industry.
HQY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HQY has a very decent profitability rating, which may justify a higher PE ratio.
HQY's earnings are expected to grow with 35.86% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NASDAQ:HQY

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HQY has achieved a 7 out of 10:

HQY has an Altman-Z score of 3.64. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HQY (3.64) is better than 74.78% of its industry peers.
The Debt to FCF ratio of HQY (4.96) is better than 66.96% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that HQY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, HQY is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
A Current Ratio of 4.93 indicates that HQY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.93, HQY belongs to the best of the industry, outperforming 90.43% of the companies in the same industry.
A Quick Ratio of 4.93 indicates that HQY has no problem at all paying its short term obligations.
The Quick ratio of HQY (4.93) is better than 92.17% of its industry peers.

What does the Profitability looks like for NASDAQ:HQY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HQY has achieved a 6:

With a decent Return On Equity value of 1.47%, HQY is doing good in the industry, outperforming 60.87% of the companies in the same industry.
The 3 year average ROIC (1.54%) for HQY is below the current ROIC(2.77%), indicating increased profibility in the last year.
With a decent Profit Margin value of 3.00%, HQY is doing good in the industry, outperforming 72.17% of the companies in the same industry.
HQY has a better Operating Margin (10.84%) than 86.96% of its industry peers.
The Gross Margin of HQY (60.90%) is better than 84.35% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of HQY contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.