HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
NASDAQ:HQY - Nasdaq - US42226A1079 - Common Stock - Currency: USD
Taking everything into account, HQY scores 6 out of 10 in our fundamental rating. HQY was compared to 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 not priced too expensively while it is growing strongly. Keep and eye on this one! This makes HQY very considerable 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.
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's Return On Assets of 3.57% is fine compared to the rest of the industry. HQY outperforms 70.87% of its industry peers.
Looking at the Return On Equity, with a value of 5.74%, HQY is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
HQY has a Return On Invested Capital (5.81%) which is in line with 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 9.55%.
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
The Profit Margin of HQY (9.80%) is better than 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 85.44% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HQY is destroying value.
The number of shares outstanding for HQY has been increased compared to 1 year ago.
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 4.47 indicates that HQY is not in any danger for bankruptcy at the moment.
HQY's Altman-Z score of 4.47 is fine compared to the rest of the industry. HQY outperforms 79.61% 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.
With a Debt to FCF ratio value of 12.07, HQY perfoms like the industry average, outperforming 45.63% of the companies in the same 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 | 4.47 |
ROIC/WACC0.69
WACC8.42%
2.3 Liquidity
HQY has a Current Ratio of 4.06. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.06, HQY belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
HQY has a Quick Ratio of 4.06. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.06, HQY belongs to the top 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.
HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
HQY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.21%.
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
Based on estimates for the next years, HQY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.85% on average per year.
HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y19.88%
EPS Next 2Y19.13%
EPS Next 3Y17.85%
EPS Next 5YN/A
Revenue Next Year9.12%
Revenue Next 2Y9.01%
Revenue Next 3Y8.75%
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
HQY is valuated quite expensively with a Price/Earnings ratio of 27.59.
Compared to the rest of the industry, the Price/Earnings ratio of HQY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.82, HQY is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.50, the valuation of HQY can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HQY is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of HQY to the average of the S&P500 Index (36.21), we can say HQY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
HQY's Enterprise Value to EBITDA ratio is in line with the industry average.
HQY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.98 | ||
| EV/EBITDA | 21.31 |
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.
HQY's earnings are expected to grow with 17.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)2.17
EPS Next 2Y19.13%
EPS Next 3Y17.85%
5. Dividend
5.1 Amount
No dividends for HQY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.06
-5.94 (-6.12%)
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-1.42%
Ins Owners1.62%
Ins Owner Change0.67%
Market Cap7.87B
Analysts85.56
Price Target124.28 (36.48%)
Short Float %6.43%
Short Ratio5.21
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)0.32%
PT rev (3m)9.02%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)0.19%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 20.5 | ||
| P/S | 6.34 | ||
| P/FCF | 89.98 | ||
| P/OCF | 23.22 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.31 |
EPS(TTM)3.3
EY3.62%
EPS(NY)4.44
Fwd EY4.88%
FCF(TTM)1.01
FCFY1.11%
OCF(TTM)3.92
OCFY4.31%
SpS14.37
BVpS24.56
TBVpS-8.14
PEG (NY)1.39
PEG (5Y)2.17
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 | 4.47 |
F-Score7
WACC8.42%
ROIC/WACC0.69
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 Y19.88%
EPS Next 2Y19.13%
EPS Next 3Y17.85%
EPS Next 5YN/A
Revenue 1Y (TTM)19.21%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%15.04%
Revenue Next Year9.12%
Revenue Next 2Y9.01%
Revenue Next 3Y8.75%
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%