HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
NASDAQ:HQY - Nasdaq - US42226A1079 - Common Stock - Currency: USD
Overall HQY gets a fundamental rating of 6 out of 10. We evaluated HQY against 108 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 shows excellent growth, but is valued quite expensive already. This makes HQY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year HQY was profitable.
HQY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HQY reported negative net income in multiple years.
HQY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HQY (2.77%) is better than 67.29% of its industry peers.
With a decent Return On Equity value of 4.55%, HQY is doing good in the industry, outperforming 62.62% of the companies in the same industry.
The Return On Invested Capital of HQY (4.45%) 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 8.14%.
The 3 year average ROIC (1.70%) for HQY is below the current ROIC(4.45%), indicating increased profibility in the last year.
| 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
HQY's Profit Margin of 8.41% is amongst the best of the industry. HQY outperforms 90.65% of its industry peers.
In the last couple of years the Profit Margin of HQY has declined.
HQY has a better Operating Margin (17.36%) than 97.20% of its industry peers.
HQY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 65.52%, HQY belongs to the best of the industry, outperforming 86.92% 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
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.
Compared to 5 years ago, HQY has more shares outstanding
The debt/assets ratio for HQY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.99 indicates that HQY is not in any danger for bankruptcy at the moment.
HQY's Altman-Z score of 4.99 is amongst the best of the industry. HQY outperforms 84.11% of its industry peers.
HQY has a Debt/Equity ratio of 0.51. This is a neutral value indicating HQY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, HQY perfoms like the industry average, outperforming 58.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.99 |
ROIC/WACC0.52
WACC8.63%
2.3 Liquidity
HQY has a Current Ratio of 3.20. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
HQY has a better Current ratio (3.20) than 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.
Looking at the Quick ratio, with a value of 3.20, HQY belongs to the top of the industry, outperforming 87.85% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 13.50% on average over the past years. This is quite good.
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 Y40.91%
EPS Next 2Y28.8%
EPS Next 3Y26.17%
EPS Next 5Y24.93%
Revenue Next Year19.88%
Revenue Next 2Y14.33%
Revenue Next 3Y13.17%
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
The Price/Earnings ratio is 35.37, which means the current valuation is very expensive for HQY.
The rest of the industry has a similar Price/Earnings ratio as HQY.
When comparing the Price/Earnings ratio of HQY to the average of the S&P500 Index (29.63), we can say HQY is valued inline with the index average.
HQY is valuated quite expensively with a Price/Forward Earnings ratio of 28.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HQY is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, HQY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.37 | ||
| Fwd PE | 28.97 |
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 | 28.93 |
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.
HQY has a very decent profitability rating, which may justify a higher PE ratio.
HQY's earnings are expected to grow with 26.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)2.62
EPS Next 2Y28.8%
EPS Next 3Y26.17%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.6
-3.12 (-2.79%)
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 Change125.51%
Ins Owners1.84%
Ins Owner Change-0.12%
Market Cap9.41B
Analysts84.44
Price Target116.57 (7.34%)
Short Float %5.18%
Short Ratio5.53
Dividend
| Industry Rank | Sector 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)14.42%
Min EPS beat(2)6.92%
Max EPS beat(2)21.92%
EPS beat(4)4
Avg EPS beat(4)14.94%
Min EPS beat(4)6.92%
Max EPS beat(4)21.92%
EPS beat(8)8
Avg EPS beat(8)14.36%
EPS beat(12)10
Avg EPS beat(12)9.71%
EPS beat(16)13
Avg EPS beat(16)9.27%
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)1.14%
PT rev (3m)10.51%
EPS NQ rev (1m)-2.37%
EPS NQ rev (3m)-7.84%
EPS NY rev (1m)0.71%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.37 | ||
| Fwd PE | 28.97 | ||
| P/S | 8.18 | ||
| P/FCF | N/A | ||
| P/OCF | 27.58 | ||
| P/B | 4.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.93 |
EPS(TTM)3.07
EY2.83%
EPS(NY)3.75
Fwd EY3.45%
FCF(TTM)-1.87
FCFYN/A
OCF(TTM)3.94
OCFY3.63%
SpS13.27
BVpS24.52
TBVpS-8.68
PEG (NY)0.86
PEG (5Y)2.62
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 | 4.99 |
F-Score7
WACC8.63%
ROIC/WACC0.52
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 Y40.91%
EPS Next 2Y28.8%
EPS Next 3Y26.17%
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 2Y14.33%
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%