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 103 industry peers in the Health Care Providers & Services industry. HQY has an excellent profitability rating, but there are some minor concerns on its financial health. HQY shows excellent growth, but is valued quite expensive already. These ratings would make HQY suitable 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 (3.57%) is better than 69.90% of its industry peers.
HQY has a Return On Equity of 5.74%. This is in the better half of the industry: HQY outperforms 62.14% of its industry peers.
HQY has a Return On Invested Capital of 5.81%. This is in the better half of the industry: HQY outperforms 60.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HQY is significantly below the industry average of 9.62%.
The 3 year average ROIC (3.06%) for HQY is below the current ROIC(5.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.74% | ||
| ROIC | 5.81% |
ROA(3y)1.24%
ROA(5y)0.52%
ROE(3y)1.98%
ROE(5y)0.84%
ROIC(3y)3.06%
ROIC(5y)2.55%
1.3 Margins
HQY has a Profit Margin of 9.80%. This is amongst the best in the industry. HQY outperforms 94.17% of its industry peers.
In the last couple of years the Profit Margin of HQY has grown nicely.
Looking at the Operating Margin, with a value of 19.59%, HQY belongs to the top of the industry, outperforming 96.12% of the companies in the same industry.
HQY's Operating Margin has declined in the last couple of years.
HQY's Gross Margin of 65.52% is amongst the best of the industry. HQY outperforms 87.38% of its industry peers.
HQY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.59% | ||
| PM (TTM) | 9.8% | ||
| GM | 65.52% |
OM growth 3Y46.64%
OM growth 5Y-3.79%
PM growth 3YN/A
PM growth 5Y1.57%
GM growth 3Y4.97%
GM growth 5Y1.12%
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.
The number of shares outstanding for HQY has been increased compared to 1 year ago.
Compared to 5 years ago, HQY has more shares outstanding
The debt/assets ratio for HQY is higher compared to a year ago.
2.2 Solvency
HQY has an Altman-Z score of 4.89. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.89, HQY belongs to the best of the industry, outperforming 83.50% of the companies in the same industry.
HQY has a debt to FCF ratio of 12.07. This is a negative value and a sign of low solvency as HQY would need 12.07 years to pay back of all of its debts.
HQY's Debt to FCF ratio of 12.07 is in line compared to the rest of the industry. HQY outperforms 46.60% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that HQY is not too dependend on debt financing.
HQY has a better Debt to Equity ratio (0.50) than 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 12.07 | ||
| Altman-Z | 4.89 |
ROIC/WACC0.68
WACC8.6%
2.3 Liquidity
A Current Ratio of 4.06 indicates that HQY has no problem at all paying its short term obligations.
HQY has a Current ratio of 4.06. This is amongst the best in the industry. HQY outperforms 91.26% of its industry peers.
A Quick Ratio of 4.06 indicates that HQY has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.06, HQY belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.06 | ||
| Quick Ratio | 4.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.91% over the past year.
The Earnings Per Share has been growing by 12.72% 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 19.21% in the last year.
The Revenue has been growing by 17.66% on average over the past years. This is quite good.
EPS 1Y (TTM)28.91%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%21.25%
Revenue 1Y (TTM)19.21%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%15.04%
3.2 Future
HQY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.47% yearly.
Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 9.12% on average per year.
EPS Next Y19.65%
EPS Next 2Y19.13%
EPS Next 3Y18.47%
EPS Next 5YN/A
Revenue Next Year9.04%
Revenue Next 2Y9.04%
Revenue Next 3Y9.12%
Revenue Next 5YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HQY is valuated quite expensively with a Price/Earnings ratio of 30.67.
The rest of the industry has a similar Price/Earnings ratio as HQY.
Compared to an average S&P500 Price/Earnings ratio of 26.65, HQY is valued at the same level.
The Price/Forward Earnings ratio is 22.78, which indicates a rather expensive current valuation of HQY.
HQY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.27. HQY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 22.78 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as HQY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.18 | ||
| EV/EBITDA | 23.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HQY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HQY's earnings are expected to grow with 18.47% in the coming years.
PEG (NY)1.56
PEG (5Y)2.41
EPS Next 2Y19.13%
EPS Next 3Y18.47%
5. Dividend
5.1 Amount
No dividends for HQY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.21
-0.09 (-0.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners108.43%
Inst Owner Change-53.08%
Ins Owners1.62%
Ins Owner Change0.65%
Market Cap8.77B
Analysts85.56
Price Target123.89 (22.41%)
Short Float %7.05%
Short Ratio5.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.31%
Min EPS beat(2)-5.01%
Max EPS beat(2)17.64%
EPS beat(4)3
Avg EPS beat(4)10.37%
Min EPS beat(4)-5.01%
Max EPS beat(4)21.92%
EPS beat(8)7
Avg EPS beat(8)12.64%
EPS beat(12)10
Avg EPS beat(12)11.26%
EPS beat(16)12
Avg EPS beat(16)8.67%
Revenue beat(2)2
Avg Revenue beat(2)1.22%
Min Revenue beat(2)0.88%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)2.26%
Min Revenue beat(4)0.88%
Max Revenue beat(4)4.24%
Revenue beat(8)8
Avg Revenue beat(8)1.71%
Revenue beat(12)12
Avg Revenue beat(12)1.56%
Revenue beat(16)14
Avg Revenue beat(16)1.05%
PT rev (1m)8.67%
PT rev (3m)4%
EPS NQ rev (1m)4.35%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)2.09%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 22.78 | ||
| P/S | 7.05 | ||
| P/FCF | 100.18 | ||
| P/OCF | 25.85 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.53 |
EPS(TTM)3.3
EY3.26%
EPS(NY)4.44
Fwd EY4.39%
FCF(TTM)1.01
FCFY1%
OCF(TTM)3.92
OCFY3.87%
SpS14.35
BVpS24.52
TBVpS-8.12
PEG (NY)1.56
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.74% | ||
| ROCE | 7.38% | ||
| ROIC | 5.81% | ||
| ROICexc | 6.37% | ||
| ROICexgc | 103.99% | ||
| OM | 19.59% | ||
| PM (TTM) | 9.8% | ||
| GM | 65.52% | ||
| FCFM | 7.04% |
ROA(3y)1.24%
ROA(5y)0.52%
ROE(3y)1.98%
ROE(5y)0.84%
ROIC(3y)3.06%
ROIC(5y)2.55%
ROICexc(3y)3.42%
ROICexc(5y)2.86%
ROICexgc(3y)66.66%
ROICexgc(5y)61.07%
ROCE(3y)3.88%
ROCE(5y)3.24%
ROICexcg growth 3Y56.29%
ROICexcg growth 5Y6.43%
ROICexc growth 3Y65.75%
ROICexc growth 5Y6.63%
OM growth 3Y46.64%
OM growth 5Y-3.79%
PM growth 3YN/A
PM growth 5Y1.57%
GM growth 3Y4.97%
GM growth 5Y1.12%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 12.07 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 155.09% | ||
| Cap/Sales | 20.24% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 83.6% | ||
| Profit Quality | 71.85% | ||
| Current Ratio | 4.06 | ||
| Quick Ratio | 4.06 | ||
| Altman-Z | 4.89 |
F-Score7
WACC8.6%
ROIC/WACC0.68
Cap/Depr(3y)138.38%
Cap/Depr(5y)119.74%
Cap/Sales(3y)20.19%
Cap/Sales(5y)18.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.91%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%21.25%
EPS Next Y19.65%
EPS Next 2Y19.13%
EPS Next 3Y18.47%
EPS Next 5YN/A
Revenue 1Y (TTM)19.21%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%15.04%
Revenue Next Year9.04%
Revenue Next 2Y9.04%
Revenue Next 3Y9.12%
Revenue Next 5YN/A
EBIT growth 1Y67.59%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year217.6%
EBIT Next 3Y63.18%
EBIT Next 5YN/A
FCF growth 1Y-27.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.69%
OCF growth 3Y34.08%
OCF growth 5Y26.48%