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 is valued quite expensively, but it does show have an excellent growth rating. These ratings could make HQY a good candidate for growth 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.
The reported net income has been mixed in the past 5 years: HQY reported negative net income in multiple years.
Each year in the past 5 years HQY had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.57%, HQY is doing good in the industry, outperforming 69.90% of the companies in the same industry.
HQY has a better Return On Equity (5.74%) than 62.14% of its industry peers.
With a decent Return On Invested Capital value of 5.81%, HQY is doing good in the industry, outperforming 60.19% of the companies in the same industry.
HQY had an Average Return On Invested Capital over the past 3 years of 3.06%. This is significantly below the industry average of 9.71%.
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.
HQY's Profit Margin has improved in the last couple of years.
HQY has a Operating Margin of 19.59%. This is amongst the best in the industry. HQY outperforms 96.12% of its industry peers.
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 86.41% of its industry peers.
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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HQY 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
Compared to 1 year ago, HQY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.92 indicates that HQY is not in any danger for bankruptcy at the moment.
HQY's Altman-Z score of 4.92 is amongst the best of the industry. HQY outperforms 81.55% of its industry peers.
The Debt to FCF ratio of HQY is 12.07, which is on the high side as it means it would take HQY, 12.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HQY (12.07) is comparable to the rest of the industry.
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 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 12.07 | ||
| Altman-Z | 4.92 |
ROIC/WACC0.68
WACC8.53%
2.3 Liquidity
A Current Ratio of 4.06 indicates that HQY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.06, HQY belongs to the top of the industry, outperforming 91.26% of the companies in the same industry.
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
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.91%, which is quite impressive.
Measured over the past years, HQY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.72% on average per year.
The Revenue has grown by 19.21% in the past year. This is quite good.
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)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 19.31% 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 3Y19.31%
EPS Next 5YN/A
Revenue Next Year9.04%
Revenue Next 2Y9.04%
Revenue Next 3Y9.12%
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
A Price/Earnings ratio of 30.96 indicates a quite expensive valuation of HQY.
HQY's Price/Earnings is on the same level as the industry average.
HQY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.00, HQY is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as HQY.
HQY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.96 | ||
| Fwd PE | 23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HQY.
The rest of the industry has a similar Price/Free Cash Flow ratio as HQY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.12 | ||
| EV/EBITDA | 23.71 |
4.3 Compensation for Growth
HQY's 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 19.31% in the coming years.
PEG (NY)1.58
PEG (5Y)2.43
EPS Next 2Y19.13%
EPS Next 3Y19.31%
5. Dividend
5.1 Amount
No dividends for HQY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.16
+0.88 (+0.87%)
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 Cap8.85B
Analysts85.56
Price Target123.89 (21.27%)
Short Float %6.22%
Short Ratio4.91
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)3.71%
EPS NY rev (1m)2.09%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.96 | ||
| Fwd PE | 23 | ||
| P/S | 7.12 | ||
| P/FCF | 101.12 | ||
| P/OCF | 26.09 | ||
| P/B | 4.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.71 |
EPS(TTM)3.3
EY3.23%
EPS(NY)4.44
Fwd EY4.35%
FCF(TTM)1.01
FCFY0.99%
OCF(TTM)3.92
OCFY3.83%
SpS14.35
BVpS24.52
TBVpS-8.12
PEG (NY)1.58
PEG (5Y)2.43
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 | 4.92 |
F-Score7
WACC8.53%
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 3Y19.31%
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 3Y62.24%
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%