HEALTHEQUITY INC (HQY)
US42226A1079 - Common Stock
Overall HQY gets a fundamental rating of 6 out of 10. We evaluated HQY against 109 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of HQY get a neutral evaluation. Nothing too spectacular is happening here. HQY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, HQY could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
HQY had positive earnings in the past year.
In the past year HQY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HQY reported negative net income in multiple years.
In the past 5 years HQY always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.77%, HQY is doing good in the industry, outperforming 68.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.55%, HQY is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
With a Return On Invested Capital value of 4.45%, HQY perfoms like the industry average, outperforming 54.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HQY is significantly below the industry average of 8.15%.
The last Return On Invested Capital (4.45%) for HQY is above the 3 year average (1.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 4.55% | ||
| ROIC | 4.45% |
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
The Profit Margin of HQY (8.41%) is better than 89.81% 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 17.36%, HQY belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
In the last couple of years the Operating Margin of HQY has declined.
Looking at the Gross Margin, with a value of 65.52%, HQY belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
HQY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.36% | ||
| PM (TTM) | 8.41% | ||
| GM | 65.52% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HQY is destroying value.
Compared to 1 year ago, HQY has more shares outstanding
Compared to 5 years ago, HQY has more shares outstanding
Compared to 1 year ago, HQY has an improved debt to assets ratio.
2.2 Solvency
HQY has an Altman-Z score of 4.34. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
HQY has a Altman-Z score of 4.34. This is amongst the best in the industry. HQY outperforms 82.41% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that HQY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, HQY is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.34 |
ROIC/WACC0.51
WACC8.71%
2.3 Liquidity
A Current Ratio of 3.20 indicates that HQY has no problem at all paying its short term obligations.
HQY's Current ratio of 3.20 is amongst the best of the industry. HQY outperforms 88.89% of its industry peers.
A Quick Ratio of 3.20 indicates that HQY has no problem at all paying its short term obligations.
HQY's Quick ratio of 3.20 is amongst the best of the industry. HQY outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 3.2 |
3. Growth
3.1 Past
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.50%, which is quite impressive.
Measured over the past years, HQY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.50% on average per year.
The Revenue has grown by 18.47% 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 28.33% on average per year.
EPS 1Y (TTM)53.5%
EPS 3Y10.39%
EPS 5Y13.5%
EPS Q2Q%30%
Revenue 1Y (TTM)18.47%
Revenue growth 3Y10.86%
Revenue growth 5Y28.33%
Sales Q2Q%20.55%
3.2 Future
Based on estimates for the next years, HQY will show a very strong growth in Earnings Per Share. The EPS will grow by 24.93% on average per year.
HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.73% yearly.
EPS Next Y39.92%
EPS Next 2Y28.8%
EPS Next 3Y26.71%
EPS Next 5Y24.93%
Revenue Next Year19.48%
Revenue Next 2Y14.5%
Revenue Next 3Y13.53%
Revenue Next 5Y14.73%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
HQY is valuated quite expensively with a Price/Earnings ratio of 30.93.
HQY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, HQY is valued at the same level.
Based on the Price/Forward Earnings ratio of 25.32, the valuation of HQY can be described as expensive.
HQY's Price/Forward Earnings is on the same level as the industry average.
HQY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.93 | ||
| Fwd PE | 25.32 |
4.2 Price Multiples
HQY's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.86 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as HQY's earnings are expected to grow with 26.71% in the coming years.
PEG (NY)0.77
PEG (5Y)2.29
EPS Next 2Y28.8%
EPS Next 3Y26.71%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HEALTHEQUITY INC
NASDAQ:HQY (12/20/2024, 8:17:04 PM)
After market: 94.95 0 (0%)94.95
+0.19 (+0.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners103.17%
Inst Owner Change0.02%
Ins Owners1.84%
Ins Owner Change-0.22%
Market Cap8.23B
Analysts84.44
Price Target110.79 (16.68%)
Short Float %4.93%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.59%
Min EPS beat(2)7.26%
Max EPS beat(2)21.92%
EPS beat(4)4
Avg EPS beat(4)15.03%
Min EPS beat(4)7.26%
Max EPS beat(4)21.92%
EPS beat(8)8
Avg EPS beat(8)14.4%
EPS beat(12)10
Avg EPS beat(12)9.74%
EPS beat(16)13
Avg EPS beat(16)9.29%
Revenue beat(2)2
Avg Revenue beat(2)3.3%
Min Revenue beat(2)2.35%
Max Revenue beat(2)4.24%
Revenue beat(4)4
Avg Revenue beat(4)2.36%
Min Revenue beat(4)0.48%
Max Revenue beat(4)4.24%
Revenue beat(8)8
Avg Revenue beat(8)1.58%
Revenue beat(12)11
Avg Revenue beat(12)1.39%
Revenue beat(16)14
Avg Revenue beat(16)0.98%
PT rev (1m)5.03%
PT rev (3m)4.83%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)0.53%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.93 | ||
| Fwd PE | 25.32 | ||
| P/S | 7.15 | ||
| P/FCF | N/A | ||
| P/OCF | 24.12 | ||
| P/B | 3.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.86 |
EPS(TTM)3.07
EY3.23%
EPS(NY)3.75
Fwd EY3.95%
FCF(TTM)-1.87
FCFYN/A
OCF(TTM)3.94
OCFY4.15%
SpS13.27
BVpS24.52
TBVpS-8.68
PEG (NY)0.77
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 4.55% | ||
| ROCE | 5.99% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.92% | ||
| ROICexgc | 109.81% | ||
| OM | 17.36% | ||
| PM (TTM) | 8.41% | ||
| GM | 65.52% | ||
| FCFM | N/A |
ROA(3y)-0.17%
ROA(5y)0.27%
ROE(3y)-0.34%
ROE(5y)0.69%
ROIC(3y)1.7%
ROIC(5y)2.16%
ROICexc(3y)1.91%
ROICexc(5y)2.42%
ROICexgc(3y)36.98%
ROICexgc(5y)51.92%
ROCE(3y)2.28%
ROCE(5y)2.91%
ROICexcg growth 3Y-5.83%
ROICexcg growth 5Y-18.22%
ROICexc growth 3Y9.68%
ROICexc growth 5Y-40.5%
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%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 312.18% | ||
| Cap/Sales | 43.74% | ||
| Interest Coverage | 3.59 | ||
| Cash Conversion | 94.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.2 | ||
| Quick Ratio | 3.2 | ||
| Altman-Z | 4.34 |
F-Score7
WACC8.71%
ROIC/WACC0.51
Cap/Depr(3y)67.97%
Cap/Depr(5y)72.72%
Cap/Sales(3y)12.18%
Cap/Sales(5y)11.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)53.5%
EPS 3Y10.39%
EPS 5Y13.5%
EPS Q2Q%30%
EPS Next Y39.92%
EPS Next 2Y28.8%
EPS Next 3Y26.71%
EPS Next 5Y24.93%
Revenue 1Y (TTM)18.47%
Revenue growth 3Y10.86%
Revenue growth 5Y28.33%
Sales Q2Q%20.55%
Revenue Next Year19.48%
Revenue Next 2Y14.5%
Revenue Next 3Y13.53%
Revenue Next 5Y14.73%
EBIT growth 1Y89.66%
EBIT growth 3Y17%
EBIT growth 5Y10.53%
EBIT Next Year75.89%
EBIT Next 3Y34.29%
EBIT Next 5Y30.26%
FCF growth 1Y-887.72%
FCF growth 3Y32.46%
FCF growth 5Y14.87%
OCF growth 1Y134.14%
OCF growth 3Y10.17%
OCF growth 5Y16.44%