HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
USA - NASDAQ:HQY - US42226A1079 - Common Stock
102.18 USD
-1.37 (-1.32%)
HQY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. Both the health and profitability get an excellent rating, making HQY a very profitable company, without any liquidiy or solvency issues. HQY is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes HQY very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HQY was profitable.
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.
In the past 5 years HQY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.27%, HQY is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
HQY has a better Return On Equity (6.79%) than 63.00% 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 65.00% 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 9.38%.
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
HQY has a Profit Margin of 11.49%. This is amongst the best in the industry. HQY outperforms 96.00% of its industry peers.
HQY's Profit Margin has improved in the last couple of years.
HQY's Operating Margin of 21.56% is amongst the best of the industry. HQY outperforms 97.00% 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 85.00% 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
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
The number of shares outstanding for HQY has been increased compared to 5 years ago.
HQY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.07 indicates that HQY is not in any danger for bankruptcy at the moment.
HQY has a Altman-Z score of 5.07. This is amongst the best in the industry. HQY outperforms 84.00% 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.
The Debt to FCF ratio of HQY (3.22) is better than 76.00% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that HQY is not too dependend on debt financing.
HQY's Debt to Equity ratio of 0.47 is fine compared to the rest of the industry. HQY outperforms 63.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 5.07 |
ROIC/WACC0.73
WACC9%
2.3 Liquidity
A Current Ratio of 4.23 indicates that HQY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.23, HQY belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
HQY has a Quick Ratio of 4.23. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
HQY has a better Quick ratio (4.23) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 |
3. Growth
3.1 Past
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.80%, which is quite impressive.
HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
The Revenue has grown by 15.45% in the past year. This is quite good.
Measured over the past years, HQY shows a quite strong growth in Revenue. The Revenue has been growing by 17.66% on average per year.
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
HQY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.43% yearly.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y24.7%
EPS Next 2Y20.39%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.03 indicates a quite expensive valuation of HQY.
HQY's Price/Earnings is on the same level as the industry average.
HQY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.47.
With a Price/Forward Earnings ratio of 22.52, HQY is valued on the expensive side.
HQY's Price/Forward Earnings ratio is in line with the industry average.
HQY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 22.52 |
4.2 Price Multiples
HQY's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 28.11 | ||
| EV/EBITDA | 22.34 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 19.43% in the coming years.
PEG (NY)1.18
PEG (5Y)2.28
EPS Next 2Y20.39%
EPS Next 3Y19.43%
5. Dividend
5.1 Amount
No dividends for HQY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:HQY (11/20/2025, 1:18:07 PM)
102.18
-1.37 (-1.32%)
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 Change-0.02%
Ins Owners1.59%
Ins Owner Change-8.27%
Market Cap8.80B
Revenue(TTM)1.27B
Net Income(TTM)145.84M
Analysts85.56
Price Target123.89 (21.25%)
Short Float %5.24%
Short Ratio5.23
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)-0.5%
PT rev (3m)-0.32%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)0.07%
EPS NY rev (3m)4.03%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 22.52 | ||
| P/S | 6.94 | ||
| P/FCF | 28.11 | ||
| P/OCF | 24 | ||
| P/B | 4.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.34 |
EPS(TTM)3.52
EY3.44%
EPS(NY)4.54
Fwd EY4.44%
FCF(TTM)3.63
FCFY3.56%
OCF(TTM)4.26
OCFY4.17%
SpS14.73
BVpS24.91
TBVpS-7.59
PEG (NY)1.18
PEG (5Y)2.28
Graham Number44.42
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%
ROICexgc growth 3Y56.29%
ROICexgc 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 | 5.07 |
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 Y24.7%
EPS Next 2Y20.39%
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%
HEALTHEQUITY INC / HQY FAQ
What is the ChartMill fundamental rating of HEALTHEQUITY INC (HQY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HQY.
Can you provide the valuation status for HEALTHEQUITY INC?
ChartMill assigns a valuation rating of 4 / 10 to HEALTHEQUITY INC (HQY). This can be considered as Fairly Valued.
How profitable is HEALTHEQUITY INC (HQY) stock?
HEALTHEQUITY INC (HQY) has a profitability rating of 7 / 10.
What is the expected EPS growth for HEALTHEQUITY INC (HQY) stock?
The Earnings per Share (EPS) of HEALTHEQUITY INC (HQY) is expected to grow by 24.7% in the next year.
Is the dividend of HEALTHEQUITY INC sustainable?
The dividend rating of HEALTHEQUITY INC (HQY) is 0 / 10 and the dividend payout ratio is 0%.