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HEALTHEQUITY INC (HQY) Stock Fundamental Analysis

NASDAQ:HQY - Nasdaq - US42226A1079 - Common Stock

104.74  +2.32 (+2.27%)

After market: 104.74 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to HQY. HQY was compared to 108 industry peers in the Health Care Providers & Services industry. HQY has only an average score on both its financial health and profitability. HQY is valued quite expensively, but it does show have an excellent growth rating. These ratings would make HQY suitable for growth investing!


Dividend Valuation Growth Profitability Health

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6

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.
In multiple years HQY reported negative net income over the last 5 years.
Each year in the past 5 years HQY had a positive operating cash flow.
HQY Yearly Net Income VS EBIT VS OCF VS FCFHQY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

1.2 Ratios

With a decent Return On Assets value of 2.77%, HQY is doing good in the industry, outperforming 68.22% of the companies in the same industry.
HQY has a Return On Equity of 4.55%. This is in the better half of the industry: HQY outperforms 62.62% of its industry peers.
HQY has a Return On Invested Capital of 4.45%. This is comparable to the rest of the industry: HQY outperforms 54.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HQY is significantly below the industry average of 8.27%.
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 RankSector 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%
HQY Yearly ROA, ROE, ROICHQY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

HQY has a Profit Margin of 8.41%. This is amongst the best in the industry. HQY outperforms 89.72% of its industry peers.
HQY's Profit Margin has declined in the last couple of years.
HQY has a Operating Margin of 17.36%. This is amongst the best in the industry. HQY outperforms 97.20% of its industry peers.
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 87.85% of the companies in the same industry.
HQY's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
HQY Yearly Profit, Operating, Gross MarginsHQY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HQY is destroying value.
HQY has more shares outstanding than it did 1 year ago.
HQY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HQY has been reduced compared to a year ago.
HQY Yearly Shares OutstandingHQY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
HQY Yearly Total Debt VS Total AssetsHQY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 4.63 indicates that HQY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.63, HQY belongs to the top of the industry, outperforming 84.11% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that HQY is somewhat dependend on debt financing.
HQY's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. HQY outperforms 57.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z 4.63
ROIC/WACC0.51
WACC8.78%
HQY Yearly LT Debt VS Equity VS FCFHQY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 3.20 indicates that HQY has no problem at all paying its short term obligations.
HQY has a Current ratio of 3.20. This is amongst the best in the industry. HQY outperforms 87.85% of its industry peers.
HQY has a Quick Ratio of 3.20. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.20, HQY belongs to the best of the industry, outperforming 87.85% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.2
Quick Ratio 3.2
HQY Yearly Current Assets VS Current LiabilitesHQY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 53.50% over the past year.
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 18.47% 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)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

The Earnings Per Share is expected to grow by 24.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.73% on average over the next years. This is quite good.
EPS Next Y39.92%
EPS Next 2Y28.8%
EPS Next 3Y26.71%
EPS Next 5Y24.93%
Revenue Next Year19.88%
Revenue Next 2Y14.03%
Revenue Next 3Y13.17%
Revenue Next 5Y14.73%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
HQY Yearly Revenue VS EstimatesHQY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
HQY Yearly EPS VS EstimatesHQY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 34.12, the valuation of HQY can be described as expensive.
HQY's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. HQY is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.93, the valuation of HQY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HQY is on the same level as its industry peers.
HQY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 34.12
Fwd PE 27.93
HQY Price Earnings VS Forward Price EarningsHQY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HQY is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.7
HQY Per share dataHQY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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.
HQY's earnings are expected to grow with 26.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)2.53
EPS Next 2Y28.8%
EPS Next 3Y26.71%

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0

5. Dividend

5.1 Amount

No dividends for HQY!.
Industry RankSector Rank
Dividend Yield N/A

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HEALTHEQUITY INC

NASDAQ:HQY (1/21/2025, 8:05:58 PM)

After market: 104.74 0 (0%)

104.74

+2.32 (+2.27%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)12-09 2024-12-09/amc
Earnings (Next)N/A N/A
Inst Owners103.17%
Inst Owner Change0.06%
Ins Owners1.84%
Ins Owner Change-0.15%
Market Cap9.08B
Analysts84.44
Price Target115.26 (10.04%)
Short Float %4.95%
Short Ratio5.2
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)4.04%
PT rev (3m)8.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.6%
EPS NY rev (1m)0%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.17%
Valuation
Industry RankSector Rank
PE 34.12
Fwd PE 27.93
P/S 7.89
P/FCF N/A
P/OCF 26.6
P/B 4.27
P/tB N/A
EV/EBITDA 26.7
EPS(TTM)3.07
EY2.93%
EPS(NY)3.75
Fwd EY3.58%
FCF(TTM)-1.87
FCFYN/A
OCF(TTM)3.94
OCFY3.76%
SpS13.27
BVpS24.52
TBVpS-8.68
PEG (NY)0.85
PEG (5Y)2.53
Profitability
Industry RankSector 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 RankSector 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 4.63
F-Score7
WACC8.78%
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 Year19.88%
Revenue Next 2Y14.03%
Revenue Next 3Y13.17%
Revenue Next 5Y14.73%
EBIT growth 1Y89.66%
EBIT growth 3Y17%
EBIT growth 5Y10.53%
EBIT Next Year76.58%
EBIT Next 3Y33.24%
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%