HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
NASDAQ:HQY - Nasdaq - US42226A1079 - Common Stock - Currency: USD
Overall HQY gets a fundamental rating of 5 out of 10. We evaluated HQY against 102 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. 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.
In the past 5 years HQY always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.80%, HQY is doing good in the industry, outperforming 62.75% of the companies in the same industry.
With a Return On Equity value of 4.57%, HQY perfoms like the industry average, outperforming 59.80% of the companies in the same industry.
HQY has a Return On Invested Capital of 4.86%. This is comparable to the rest of the industry: HQY outperforms 54.90% of its industry peers.
HQY had an Average Return On Invested Capital over the past 3 years of 3.06%. This is significantly below the industry average of 9.59%.
The last Return On Invested Capital (4.86%) for HQY is above the 3 year average (3.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 4.57% | ||
| ROIC | 4.86% |
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 better Profit Margin (8.06%) than 89.22% of its industry peers.
HQY's Profit Margin has improved in the last couple of years.
The Operating Margin of HQY (16.91%) is better than 94.12% of its industry peers.
HQY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 64.78%, HQY belongs to the top of the industry, outperforming 87.25% 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 | 16.91% | ||
| PM (TTM) | 8.06% | ||
| GM | 64.78% |
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.
Compared to 1 year ago, HQY has more shares outstanding
HQY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HQY is higher compared to a year ago.
2.2 Solvency
HQY has an Altman-Z score of 4.66. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
HQY's Altman-Z score of 4.66 is amongst the best of the industry. HQY outperforms 81.37% of its industry peers.
HQY has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, HQY is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.66 |
ROIC/WACC0.56
WACC8.62%
2.3 Liquidity
HQY has a Current Ratio of 3.06. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.06, HQY belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
A Quick Ratio of 3.06 indicates that HQY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.06, HQY belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.50%, which is quite impressive.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
HQY shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.03%.
HQY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.66% yearly.
EPS 1Y (TTM)38.5%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%9.52%
Revenue 1Y (TTM)20.03%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%18.84%
3.2 Future
The Earnings Per Share is expected to grow by 19.79% on average over the next years. This is quite good.
HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.09% yearly.
EPS Next Y17.2%
EPS Next 2Y19.57%
EPS Next 3Y19.79%
EPS Next 5YN/A
Revenue Next Year9.04%
Revenue Next 2Y9.54%
Revenue Next 3Y10.09%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
HQY is valuated quite expensively with a Price/Earnings ratio of 32.14.
HQY's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, HQY is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.43 indicates a quite expensive valuation of HQY.
HQY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, HQY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 27.43 |
4.2 Price Multiples
HQY's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of HQY may justify a higher PE ratio.
HQY's earnings are expected to grow with 19.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)2.53
EPS Next 2Y19.57%
EPS Next 3Y19.79%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.61
-0.37 (-0.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.29%
Inst Owner Change-53.08%
Ins Owners1.55%
Ins Owner Change1.02%
Market Cap8.72B
Analysts85.56
Price Target114.01 (13.32%)
Short Float %7.32%
Short Ratio5.1
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)0.96%
Min EPS beat(2)-5.01%
Max EPS beat(2)6.92%
EPS beat(4)3
Avg EPS beat(4)11.08%
Min EPS beat(4)-5.01%
Max EPS beat(4)21.92%
EPS beat(8)7
Avg EPS beat(8)13.18%
EPS beat(12)10
Avg EPS beat(12)10.02%
EPS beat(16)12
Avg EPS beat(16)8.63%
Revenue beat(2)2
Avg Revenue beat(2)1.61%
Min Revenue beat(2)0.88%
Max Revenue beat(2)2.35%
Revenue beat(4)4
Avg Revenue beat(4)2.46%
Min Revenue beat(4)0.88%
Max Revenue beat(4)4.24%
Revenue beat(8)8
Avg Revenue beat(8)1.65%
Revenue beat(12)11
Avg Revenue beat(12)1.41%
Revenue beat(16)14
Avg Revenue beat(16)1%
PT rev (1m)0%
PT rev (3m)-2.51%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-9.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.15%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 27.43 | ||
| P/S | 7.26 | ||
| P/FCF | N/A | ||
| P/OCF | 25.65 | ||
| P/B | 4.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.94 |
EPS(TTM)3.13
EY3.11%
EPS(NY)3.67
Fwd EY3.65%
FCF(TTM)-1.91
FCFYN/A
OCF(TTM)3.92
OCFY3.9%
SpS13.85
BVpS24.41
TBVpS-8.52
PEG (NY)1.87
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 4.57% | ||
| ROCE | 6.16% | ||
| ROIC | 4.86% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 111.41% | ||
| OM | 16.91% | ||
| PM (TTM) | 8.06% | ||
| GM | 64.78% | ||
| FCFM | N/A |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 311.14% | ||
| Cap/Sales | 42.13% | ||
| Interest Coverage | 3.46 | ||
| Cash Conversion | 93.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 | ||
| Altman-Z | 4.66 |
F-Score7
WACC8.62%
ROIC/WACC0.56
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)38.5%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%9.52%
EPS Next Y17.2%
EPS Next 2Y19.57%
EPS Next 3Y19.79%
EPS Next 5YN/A
Revenue 1Y (TTM)20.03%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%18.84%
Revenue Next Year9.04%
Revenue Next 2Y9.54%
Revenue Next 3Y10.09%
Revenue Next 5YN/A
EBIT growth 1Y58.33%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year217.6%
EBIT Next 3Y63.18%
EBIT Next 5YN/A
FCF growth 1Y-184.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y39.96%
OCF growth 3Y34.08%
OCF growth 5Y26.48%