HEALTHEQUITY INC (HQY) Fundamental Analysis & Valuation
NASDAQ:HQY • US42226A1079
78.36 USD
-1.59 (-1.99%)
At close: Mar 6, 2026
78.36 USD
0 (0%)
After Hours: 3/6/2026, 8:24:26 PM
This HQY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
HQY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. HQY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HQY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make HQY a good candidate for growth and quality investing.
1. HQY Profitability Analysis
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
- HQY has a Return On Assets of 5.65%. This is in the better half of the industry: HQY outperforms 79.21% of its industry peers.
- HQY has a Return On Equity of 8.99%. This is in the better half of the industry: HQY outperforms 68.32% of its industry peers.
- HQY's Return On Invested Capital of 7.20% is fine compared to the rest of the industry. HQY outperforms 68.32% 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 9.04%.
- The last Return On Invested Capital (7.20%) for HQY is above the 3 year average (3.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 8.99% | ||
| ROIC | 7.2% |
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's Profit Margin of 14.86% is amongst the best of the industry. HQY outperforms 99.01% of its industry peers.
- In the last couple of years the Profit Margin of HQY has grown nicely.
- HQY has a better Operating Margin (23.20%) than 98.02% 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 67.72%, HQY belongs to the top of the industry, outperforming 85.15% 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 | 23.2% | ||
| PM (TTM) | 14.86% | ||
| GM | 67.72% |
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. HQY Health Analysis
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.
- 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 4.07 indicates that HQY is not in any danger for bankruptcy at the moment.
- HQY's Altman-Z score of 4.07 is fine compared to the rest of the industry. HQY outperforms 76.24% of its industry peers.
- HQY has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as HQY would need 2.71 years to pay back of all of its debts.
- The Debt to FCF ratio of HQY (2.71) is better than 75.25% of its industry peers.
- A Debt/Equity ratio of 0.46 indicates that HQY is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.46, HQY is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.87
WACC8.28%
2.3 Liquidity
- HQY has a Current Ratio of 4.13. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.13, HQY belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
- A Quick Ratio of 4.13 indicates that HQY has no problem at all paying its short term obligations.
- HQY has a better Quick ratio (4.13) than 91.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.13 | ||
| Quick Ratio | 4.13 |
3. HQY Growth Analysis
3.1 Past
- HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.15%, 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.
- Looking at the last year, HQY shows a quite strong growth in Revenue. The Revenue has grown by 12.20% in the last year.
- The Revenue has been growing by 17.66% on average over the past years. This is quite good.
EPS 1Y (TTM)22.15%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%29.49%
Revenue 1Y (TTM)12.2%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%7.23%
3.2 Future
- The Earnings Per Share is expected to grow by 20.09% 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 8.70% on average per year.
EPS Next Y27.67%
EPS Next 2Y21.11%
EPS Next 3Y20.09%
EPS Next 5YN/A
Revenue Next Year9.87%
Revenue Next 2Y8.66%
Revenue Next 3Y8.7%
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. HQY Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.90 indicates a rather expensive valuation of HQY.
- Based on the Price/Earnings ratio, HQY is valued a bit cheaper than the industry average as 68.32% of the companies are valued more expensively.
- HQY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 17.07, HQY is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HQY indicates a somewhat cheap valuation: HQY is cheaper than 72.28% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.60. HQY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 17.07 |
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.
- Based on the Price/Free Cash Flow ratio, HQY is valued a bit cheaper than 64.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.46 | ||
| EV/EBITDA | 16.21 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of HQY may justify a higher PE ratio.
- HQY's earnings are expected to grow with 20.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)1.64
EPS Next 2Y21.11%
EPS Next 3Y20.09%
5. HQY Dividend Analysis
5.1 Amount
- No dividends for HQY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HQY Fundamentals: All Metrics, Ratios and Statistics
78.36
-1.59 (-1.99%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-17 2026-03-17/amc
Inst Owners106.63%
Inst Owner Change0.07%
Ins Owners1.52%
Ins Owner Change-0.13%
Market Cap6.70B
Revenue(TTM)1.29B
Net Income(TTM)191.83M
Analysts83
Price Target120.23 (53.43%)
Short Float %3.79%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)11.96%
Min EPS beat(2)7.72%
Max EPS beat(2)16.19%
EPS beat(4)3
Avg EPS beat(4)9.14%
Min EPS beat(4)-5.01%
Max EPS beat(4)17.64%
EPS beat(8)7
Avg EPS beat(8)12.04%
EPS beat(12)11
Avg EPS beat(12)12.62%
EPS beat(16)13
Avg EPS beat(16)9.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)0.56%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)1.57%
Revenue beat(8)7
Avg Revenue beat(8)1.48%
Revenue beat(12)11
Avg Revenue beat(12)1.25%
Revenue beat(16)14
Avg Revenue beat(16)1.19%
PT rev (1m)-1.05%
PT rev (3m)-3.06%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0.12%
EPS NY rev (3m)2.28%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 17.07 | ||
| P/S | 5.19 | ||
| P/FCF | 18.46 | ||
| P/OCF | 16.14 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.21 |
EPS(TTM)3.75
EY4.79%
EPS(NY)4.59
Fwd EY5.86%
FCF(TTM)4.24
FCFY5.42%
OCF(TTM)4.86
OCFY6.2%
SpS15.11
BVpS24.98
TBVpS-7.48
PEG (NY)0.76
PEG (5Y)1.64
Graham Number45.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 8.99% | ||
| ROCE | 9.14% | ||
| ROIC | 7.2% | ||
| ROICexc | 7.95% | ||
| ROICexgc | 120.82% | ||
| OM | 23.2% | ||
| PM (TTM) | 14.86% | ||
| GM | 67.72% | ||
| FCFM | 28.1% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 33.68% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 5.46 | ||
| Cash Conversion | 91.28% | ||
| Profit Quality | 189.06% | ||
| Current Ratio | 4.13 | ||
| Quick Ratio | 4.13 | ||
| Altman-Z | 4.07 |
F-Score9
WACC8.28%
ROIC/WACC0.87
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)22.15%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%29.49%
EPS Next Y27.67%
EPS Next 2Y21.11%
EPS Next 3Y20.09%
EPS Next 5YN/A
Revenue 1Y (TTM)12.2%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%7.23%
Revenue Next Year9.87%
Revenue Next 2Y8.66%
Revenue Next 3Y8.7%
Revenue Next 5YN/A
EBIT growth 1Y49.93%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year235.29%
EBIT Next 3Y61.82%
EBIT Next 5YN/A
FCF growth 1Y105.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.54%
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.
What is the valuation status of HEALTHEQUITY INC (HQY) stock?
ChartMill assigns a valuation rating of 6 / 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 are the PE and PB ratios of HEALTHEQUITY INC (HQY) stock?
The Price/Earnings (PE) ratio for HEALTHEQUITY INC (HQY) is 20.9 and the Price/Book (PB) ratio is 3.14.
How financially healthy is HEALTHEQUITY INC?
The financial health rating of HEALTHEQUITY INC (HQY) is 7 / 10.