HEALTHEQUITY INC (HQY)
US42226A1079 - Common Stock
Overall HQY gets a fundamental rating of 6 out of 10. We evaluated HQY against 117 industry peers in the Health Care Providers & Services industry. While HQY has a great health rating, its profitability is only average at the moment. HQY is valued quite expensive, but it does show an excellent growth. 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 has a Return On Assets of 1.76%. This is in the better half of the industry: HQY outperforms 65.52% of its industry peers.
The Return On Equity of HQY (2.74%) is better than 66.38% of its industry peers.
HQY has a Return On Invested Capital (3.12%) which is comparable to the rest of the industry.
HQY had an Average Return On Invested Capital over the past 3 years of 1.69%. This is significantly below the industry average of 8.60%.
The 3 year average ROIC (1.69%) for HQY is below the current ROIC(3.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.74% | ||
| ROIC | 3.12% |
ROA(3y)-0.17%
ROA(5y)0.27%
ROE(3y)-0.34%
ROE(5y)0.69%
ROIC(3y)1.69%
ROIC(5y)2.16%
1.3 Margins
With an excellent Profit Margin value of 5.58%, HQY belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.
HQY's Profit Margin has declined in the last couple of years.
HQY has a better Operating Margin (12.82%) than 91.38% 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 62.29%, HQY belongs to the top of the industry, outperforming 85.34% of the companies in the same industry.
HQY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 5.58% | ||
| GM | 62.29% |
OM growth 3Y5.54%
OM growth 5Y-13.88%
PM growth 3Y66.87%
PM growth 5Y-26.36%
GM growth 3Y3.24%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
HQY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HQY has more shares outstanding
HQY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HQY has an improved debt to assets ratio.
2.2 Solvency
HQY has an Altman-Z score of 4.36. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
HQY has a better Altman-Z score (4.36) than 83.62% of its industry peers.
The Debt to FCF ratio of HQY is 4.45, which is a neutral value as it means it would take HQY, 4.45 years of fcf income to pay off all of its debts.
HQY has a Debt to FCF ratio of 4.45. This is in the better half of the industry: HQY outperforms 76.72% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that HQY is not too dependend on debt financing.
HQY's Debt to Equity ratio of 0.43 is fine compared to the rest of the industry. HQY outperforms 62.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 4.36 |
ROIC/WACC0.36
WACC8.67%
2.3 Liquidity
HQY has a Current Ratio of 4.76. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
HQY has a better Current ratio (4.76) than 92.24% of its industry peers.
A Quick Ratio of 4.76 indicates that HQY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.76, HQY belongs to the top of the industry, outperforming 92.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.76 | ||
| Quick Ratio | 4.76 |
3. Growth
3.1 Past
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.41%, 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 13.50% on average per year.
HQY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.99%.
Measured over the past years, HQY shows a very strong growth in Revenue. The Revenue has been growing by 28.33% on average per year.
EPS 1Y (TTM)67.41%
EPS 3Y10.39%
EPS 5Y13.5%
EPS growth Q2Q70.27%
Revenue 1Y (TTM)15.99%
Revenue growth 3Y10.86%
Revenue growth 5Y28.33%
Revenue growth Q2Q12.23%
3.2 Future
The Earnings Per Share is expected to grow by 24.79% on average over the next years. This is a very strong growth
Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 12.70% on average per year.
EPS Next Y29.56%
EPS Next 2Y27.4%
EPS Next 3Y24.79%
EPS Next 5YN/A
Revenue Next Year16%
Revenue Next 2Y14.85%
Revenue Next 3Y12.7%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
HQY is valuated quite expensively with a Price/Earnings ratio of 35.29.
HQY's Price/Earnings ratio is a bit cheaper when compared to the industry. HQY is cheaper than 62.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of HQY to the average of the S&P500 Index (24.55), we can say HQY is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.24, the valuation of HQY can be described as expensive.
HQY's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, HQY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.29 | ||
| Fwd PE | 27.24 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as HQY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.92 | ||
| EV/EBITDA | 26.11 |
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.
HQY's earnings are expected to grow with 24.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)2.61
EPS Next 2Y27.4%
EPS Next 3Y24.79%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HEALTHEQUITY INC
NASDAQ:HQY (5/1/2024, 7:01:33 PM)
After market: 79.75 0 (0%)79.75
+0.84 (+1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.29 | ||
| Fwd PE | 27.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.19
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 2.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.82% | ||
| PM (TTM) | 5.58% | ||
| GM | 62.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.76 | ||
| Quick Ratio | 4.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)67.41%
EPS 3Y10.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.99%
Revenue growth 3Y10.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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