HEALTHEQUITY INC (HQY)
US42226A1079 - Common Stock
Taking everything into account, HQY scores 6 out of 10 in our fundamental rating. HQY was compared to 113 industry peers in the Health Care Providers & Services industry. HQY has an average financial health and profitability rating. HQY is valued quite expensively, but it does show have an excellent growth rating. This makes HQY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
HQY had positive earnings in the past year.
HQY had a positive operating cash flow in the past year.
In multiple years HQY reported negative net income over the last 5 years.
HQY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HQY has a better Return On Assets (3.01%) than 72.57% of its industry peers.
The Return On Equity of HQY (4.90%) is better than 67.26% of its industry peers.
The Return On Invested Capital of HQY (3.92%) is comparable to the rest of the industry.
HQY had an Average Return On Invested Capital over the past 3 years of 1.70%. This is significantly below the industry average of 8.10%.
The last Return On Invested Capital (3.92%) for HQY is above the 3 year average (1.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 4.9% | ||
| ROIC | 3.92% |
ROA(3y)-0.17%
ROA(5y)0.27%
ROE(3y)-0.34%
ROE(5y)0.69%
ROIC(3y)1.7%
ROIC(5y)2.16%
1.3 Margins
HQY has a Profit Margin of 9.61%. This is amongst the best in the industry. HQY outperforms 94.69% of its industry peers.
In the last couple of years the Profit Margin of HQY has declined.
Looking at the Operating Margin, with a value of 16.30%, HQY belongs to the top of the industry, outperforming 95.58% of the companies in the same industry.
HQY's Operating Margin has declined in the last couple of years.
The Gross Margin of HQY (65.06%) is better than 86.73% of its industry peers.
In the last couple of years the Gross Margin of HQY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 9.61% | ||
| GM | 65.06% |
OM growth 3Y5.53%
OM growth 5Y-13.87%
PM growth 3Y66.65%
PM growth 5Y-26.35%
GM growth 3Y3.23%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
HQY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HQY has more shares outstanding
HQY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HQY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.54 indicates that HQY is not in any danger for bankruptcy at the moment.
HQY's Altman-Z score of 4.54 is amongst the best of the industry. HQY outperforms 84.07% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that HQY is somewhat dependend on debt financing.
HQY has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.54 |
ROIC/WACC0.46
WACC8.6%
2.3 Liquidity
A Current Ratio of 4.10 indicates that HQY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.10, HQY belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
A Quick Ratio of 4.10 indicates that HQY has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.10, HQY belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 4.1 |
3. Growth
3.1 Past
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.36%, 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 13.50% yearly.
Looking at the last year, HQY shows a quite strong growth in Revenue. The Revenue has grown by 17.19% in the last year.
The Revenue has been growing by 28.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)62.36%
EPS 3Y10.39%
EPS 5Y13.5%
EPS Q2Q%62.26%
Revenue 1Y (TTM)17.19%
Revenue growth 3Y10.86%
Revenue growth 5Y28.33%
Sales Q2Q%23.15%
3.2 Future
HQY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.15% yearly.
Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 13.30% on average per year.
EPS Next Y38.3%
EPS Next 2Y28.5%
EPS Next 3Y25.15%
EPS Next 5YN/A
Revenue Next Year18.59%
Revenue Next 2Y14.89%
Revenue Next 3Y13.3%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.25, HQY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HQY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.53, HQY is valued a bit more expensive.
The Price/Forward Earnings ratio is 26.53, which means the current valuation is very expensive for HQY.
HQY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.40. HQY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.25 | ||
| Fwd PE | 26.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HQY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.91 |
4.3 Compensation for Growth
HQY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HQY may justify a higher PE ratio.
HQY's earnings are expected to grow with 25.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)2.54
EPS Next 2Y28.5%
EPS Next 3Y25.15%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HEALTHEQUITY INC
NASDAQ:HQY (11/15/2024, 8:17:01 PM)
After market: 98.98 0 (0%)98.98
+3.28 (+3.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.25 | ||
| Fwd PE | 26.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.89
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 4.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.3% | ||
| PM (TTM) | 9.61% | ||
| GM | 65.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.1 | ||
| Quick Ratio | 4.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)62.36%
EPS 3Y10.39%
EPS 5Y
EPS Q2Q%
EPS Next Y38.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.19%
Revenue growth 3Y10.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y