HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
USA - NASDAQ:HQY - US42226A1079 - Common Stock
87.94 USD
-0.65 (-0.73%)
We assign a fundamental rating of 6 out of 10 to HQY. HQY was compared to 101 industry peers in the Health Care Providers & Services industry. HQY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HQY is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, HQY could be worth investigating further for growth and quality 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.
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 Return On Assets of 4.27%. This is in the better half of the industry: HQY outperforms 73.27% of its industry peers.
The Return On Equity of HQY (6.79%) is better than 64.36% of its industry peers.
HQY has a Return On Invested Capital of 6.53%. This is in the better half of the industry: HQY outperforms 65.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HQY is significantly below the industry average of 9.20%.
The 3 year average ROIC (3.06%) for HQY is below the current ROIC(6.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 6.79% | ||
| ROIC | 6.53% |
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
Looking at the Profit Margin, with a value of 11.49%, HQY belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.
In the last couple of years the Profit Margin of HQY has grown nicely.
HQY has a better Operating Margin (21.56%) than 97.03% of its industry peers.
HQY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 66.43%, HQY belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
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 | 21.56% | ||
| PM (TTM) | 11.49% | ||
| GM | 66.43% |
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
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
Compared to 1 year ago, HQY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.47 indicates that HQY is not in any danger for bankruptcy at the moment.
The Altman-Z score of HQY (4.47) is better than 76.24% of its industry peers.
HQY has a debt to FCF ratio of 3.22. This is a good value and a sign of high solvency as HQY would need 3.22 years to pay back of all of its debts.
HQY has a better Debt to FCF ratio (3.22) than 76.24% of its industry peers.
HQY has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
HQY's Debt to Equity ratio of 0.47 is fine compared to the rest of the industry. HQY outperforms 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 4.47 |
ROIC/WACC0.73
WACC9%
2.3 Liquidity
HQY has a Current Ratio of 4.23. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
HQY's Current ratio of 4.23 is amongst the best of the industry. HQY outperforms 91.09% of its industry peers.
A Quick Ratio of 4.23 indicates that HQY has no problem at all paying its short term obligations.
HQY has a better Quick ratio (4.23) than 91.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.80% 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 15.45% 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)21.8%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%25.58%
Revenue 1Y (TTM)15.45%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%8.64%
3.2 Future
Based on estimates for the next years, HQY will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.43% on average per year.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y24.61%
EPS Next 2Y20.45%
EPS Next 3Y19.43%
EPS Next 5YN/A
Revenue Next Year9.7%
Revenue Next 2Y8.97%
Revenue Next 3Y9%
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 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
The Price/Earnings ratio is 24.98, which indicates a rather expensive current valuation of HQY.
HQY's Price/Earnings ratio is a bit cheaper when compared to the industry. HQY is cheaper than 60.40% of the companies in the same industry.
HQY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
HQY is valuated rather expensively with a Price/Forward Earnings ratio of 19.37.
Based on the Price/Forward Earnings ratio, HQY is valued a bit cheaper than the industry average as 65.35% of the companies are valued more expensively.
HQY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 19.37 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HQY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.2 | ||
| EV/EBITDA | 19.35 |
4.3 Compensation for Growth
HQY's 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.
HQY's earnings are expected to grow with 19.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)1.96
EPS Next 2Y20.45%
EPS Next 3Y19.43%
5. Dividend
5.1 Amount
No dividends for HQY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:HQY (10/6/2025, 3:48:50 PM)
87.94
-0.65 (-0.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners108.01%
Inst Owner Change0%
Ins Owners1.59%
Ins Owner Change-1.02%
Market Cap7.58B
Analysts85.56
Price Target124.52 (41.6%)
Short Float %5.23%
Short Ratio4.3
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)2
Avg EPS beat(2)16.92%
Min EPS beat(2)16.19%
Max EPS beat(2)17.64%
EPS beat(4)3
Avg EPS beat(4)8.94%
Min EPS beat(4)-5.01%
Max EPS beat(4)17.64%
EPS beat(8)7
Avg EPS beat(8)13.43%
EPS beat(12)11
Avg EPS beat(12)12.69%
EPS beat(16)12
Avg EPS beat(16)9.07%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)1.34%
Min Revenue beat(4)0.56%
Max Revenue beat(4)2.35%
Revenue beat(8)8
Avg Revenue beat(8)1.72%
Revenue beat(12)12
Avg Revenue beat(12)1.59%
Revenue beat(16)14
Avg Revenue beat(16)1%
PT rev (1m)0.7%
PT rev (3m)0.51%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)3.95%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 19.37 | ||
| P/S | 5.97 | ||
| P/FCF | 24.2 | ||
| P/OCF | 20.65 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.35 |
EPS(TTM)3.52
EY4%
EPS(NY)4.54
Fwd EY5.16%
FCF(TTM)3.63
FCFY4.13%
OCF(TTM)4.26
OCFY4.84%
SpS14.73
BVpS24.91
TBVpS-7.59
PEG (NY)1.01
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 6.79% | ||
| ROCE | 8.29% | ||
| ROIC | 6.53% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 110.54% | ||
| OM | 21.56% | ||
| PM (TTM) | 11.49% | ||
| GM | 66.43% | ||
| FCFM | 24.68% |
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-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.22 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 34.21% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 4.56 | ||
| Cash Conversion | 85.18% | ||
| Profit Quality | 214.73% | ||
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 | ||
| Altman-Z | 4.47 |
F-Score9
WACC9%
ROIC/WACC0.73
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)21.8%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%25.58%
EPS Next Y24.61%
EPS Next 2Y20.45%
EPS Next 3Y19.43%
EPS Next 5YN/A
Revenue 1Y (TTM)15.45%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%8.64%
Revenue Next Year9.7%
Revenue Next 2Y8.97%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y52.7%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year230.75%
EBIT Next 3Y62.19%
EBIT Next 5YN/A
FCF growth 1Y85.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y73.01%
OCF growth 3Y34.08%
OCF growth 5Y26.48%